New Fleecehold Home

MrLogical

Hi All,
I will try to keep this brief. We are 1 week away from needing to exchange on a new home. It is lovely. Large (unusual for new homes), great location, parking, etc. The developers have offered to pay our full stamp duty and all that good stuff. It seems to good to be true. The paperwork came through to our solicitor (who we meet on Monday) and it is clear that this falls into the ‘fleecehold’ category. We knew there were charges, but not that we would be so tied into these guys for everything i.e. can’t sell on if we haven’t paid, home could get repossessed as they state rent charges. My solicitor is yet to confirm the true extent of it all to us but this home now feels more like a leasehold than a freehold.

We were so happy with it and now feel seriously deflated. We’ve looked on Rightmove and would struggle to find something as nice in this area for the price. 

I understand there are discussions around legislation being put in place to protect fleecehold homeowners and that something is going on in Wales now to review options. 

I am based in England. What are your thoughts? Should I bite the bullet and go for it, or pullout?

Other info:
road isn’t adopted by the council and may never be. Lots of green space and a communal play area for kids. Home is detached. No shared space with neighbours. 

Thanks!

Sachs

Ask your solicitor who controls the management charge.

If the answer is anything other than 'Residents like you.' I would avoid

Having said that, the government had committed to ending unfair fleecehold practices so it depends how much faith you have in BoJo and the Brexiteers really.

Flugelhorn

We are looking at similar, have arranged deed of covenant which reduces the management companies rights in case of non payment, they have to now give 2/12 notice and also cannot repossess

MrLogical

Thanks both. @Flugelhorn, What is a 2/12 notice? Thanks again.

Flugelhorn

sorry - medical shorthand - It means 2 months!

MrLogical

@Flugelhorn, thank you for confirming. Interesting to hear your developer has offered some flex in the agreement. Do you mind sharing who this developer is?

[Deleted User]

Flugelhorn said:

We are looking at similar, have arranged deed of covenant which reduces the management companies rights in case of non payment, they have to now give 2/12 notice and also cannot repossess

And how did you manage to negotiate this?  Could be so helpful for other people. I always thought the only possible response was either to sign on the dotted line or walk away entirely.

jimmyjammy001

Yeah it is likely a cheaper house because of all the charges and convenants, although it is not registered as a leasehold there will still be things you can and can not to to your house, also the green spaces and park will be charged to you and your neighbours by some external management company who can charge what they like to upkeep the areas, the council will not do it. 

Flugelhorn

Ours is not a new house, it is about 8 years old and the solicitors have noted that the terms as they stand would not be acceptable to some mortgage lenders. It appeared that some people on the estate had already come across this problem when reselling and had arranged from DoV to be done and signed by the management company and the developers. A draft was fairly readily produced when our solicitor asked for one and they are satisfied that it would meet lenders requirements. I think the push in a lot of these cases would be the lenders requirments