Set of terms in Deeds for new build, can anyone help?

buel10

getmore4less said:

The problem with a new site is you can do all the research and still walk into problems.
It is when you come to sell that you find out if you got a good, OK or bad one that no one will touch.

I understand.....but you have to try, don't you?

davidmcn

Initial capitals usually mean a defined term, so you'll need to tell us what it says wherever it has the definition of "Service Apparatus".

getmore4less

What benefit does the owner of the access strip, that 6 people will be paying for, have from keeping the strip of land?
Any access to other areas? 
I have seen this on a development the access road had gap to allow access to another field. 

buel10

Thank you, both. I will look again and try to get answers.
If it helps, my wife and I really appreciate all the help we have been given on here. It is very, very useful.

OldMusicGuy

So it appears you are responsible for 1/6 of the cost of the maintenance of the private road, and also half for use of part of a drive. The next question you need to get answered is how are the maintenance charges calculated? Does the owner of the private road decide what maintenance is carried out? Do you have any way of controlling or questioning the costs? If not, you have a financial exposure there.

The shared drive is slightly concerning (at least it would be to me). I would be happy with the concept of the shared road but the drive you don't own could be more problematic - what happens if you fall out with the owner?. However, I haven't seen the plans so can't say if that would be a problem or not.  

DCFC79

I personally dont like the idea of a shared drive, could cause issues at some time in the future.

buel10

davidmcn said:

Initial capitals usually mean a defined term, so you'll need to tell us what it says wherever it has the definition of "Service Apparatus".

Thank you for this. I have checked and it states: 

Service Apparatus

means sewers, drains, channels, pipes, watercourses, gutters, wires, cables, ducts, flues, conduits, laser optic fibres, electronic data or impulse communication, transmission or reception systems and other conducting media and associated equipment. 

buel10

getmore4less said:

What benefit does the owner of the access strip, that 6 people will be paying for, have from keeping the strip of land?
Any access to other areas? 
I have seen this on a development the access road had gap to allow access to another field. 

Excellent questions. I will do all I can to get answers on these. I am on a steep learning curve here!!

Regarding what our conveyancing solicitor has sent us so far, he sent us this letter before he sent us the deeds:

buel10

Quick one regarding management companies and the issues with them - would it be worth the guys putting this up as a sticky?

https://hoa.org.uk/2016/11/problems-facing-freeholders-new-developments/

Problems facing freeholders on new developments

There are new problems facing freeholders. We take a closer look at the issue commonly called #fleecehold and our campaign for change.

Post updated: May 19th, 2020

There is a silent revolution going on in the new build market, which no one seems to know about, least of all the actual homeowners and their conveyancers. The legal term is “freeholders on private estates”. Most people know about freehold and leasehold, but this new model has crept in without democratic scrutiny or discussion and over the past 10 years or so has become the industry standard. These  problems facing freeholders are estimated to affect at least half a million homes in the UK and is growing.

What is it?

You buy a freehold house on a new build estate and are told there is a small service charge to look after the lovely green open spaces. Sounds reasonable? Yes, until the problems start – like being charged high management bills for poor service or being charged before the estate is completed. Then, you begin digging and find the devil is in the detail. The charge is bound to your property through your title deeds, so your only way out is to move and pay off the fees. If you do move, the management company is involved with the property transfer, with fees to pay and possible delays (as often happens with leasehold transactions).

If you want to dispute the fees or ask for justification for spending so much you find that, unlike leaseholders who have a tribunal, there is no alternative dispute resolution available to freeholders. Your only alternative is to fight it in court. Not many people have the resources and motivation to take this on. You have no consumer rights as the management companies are accountable to the landowner (themselves) and not you. There is no way to change the service provider and no right to manage.

So the freeholders on a private estate find they have to pay whatever charge the company decides for whatever level of service it chooses. The open space you pay for can be used and abused by the general public and yet you are still expected to pay full council tax.

Leaseholders on private new build estates sometimes suffer from the same problem. In addition, they may end up paying inflated ground rents and may find the cost of buying their freehold is unaffordable. Although they may have a right to manage their own building and internal common parts, they have no such right with regard to the management of landscape and external amenities such as play areas. They are effectively paying two different types of charge with entirely different rules.

How has this happened?

This has all come about due to negotiations between developers and planning authorities under what is known as “Section 106 agreements”. The original intention of these was to mitigate the impact of new developments on their surrounding infrastructure (roads, schools etc.) where they would otherwise not obtain planning permission. Over the years it has turned into a mechanism for councils to squeeze funding from developers and use the much needed funds elsewhere. Councils may think they are doing the best for their ratepayers, but in the process are selling out on the new homeowners. So much is clawed back under 106 agreements that standards of build quality are reduced to maintain profit margins and the homeowners are forced to pay for open space which is not theirs and over which they have no influence.

If you refuse to pay because you are dissatisfied, your concerns and queries will be ignored, and you may be bullied in to paying up under threat of court action.

Homeowners feel duped, ripped off and very angry at the unfair and cynical way they are being treated. HorNet is a UK wide network to campaign for change and regulation. The group agrees that the whole system is unfair and unjust to the homeowner. The bigger picture involves retention of land by investors and the back door privatisation of green open space.

We are campaigning government to step in and at least put in some form of regulation and alternative dispute resolution and to give freeholders the same rights as leaseholders.

If you are in a similar situation, learn more about service charges in our guide. 

OldMusicGuy

The article is helpful but wrong when it says "there is no dispute resolution available to freeholders". There is a dispute resolution service open to freeholders, which is the Property Ombudsman. We used them twice to get our property management company to stop overcharging us. It doesn't cost anything but it is time consuming. You also need a strong case based on the covenants in your transfer of land document, you need a stronger justification than "we think the charges are high".