Freehold with Service Charge

withaspritz

We're on a new build estate with management charges.  Our TP1 excludes the right to grant a lease over the freehold land in the event of non payment (avoiding the rent charge issue as it's known) and also includes two indemnities for the roads and sewerage pumping station such that any costs will not be billed back to the households for these (with the aim to have them adopted by the authorities concerned).  I'd suggest checking to ensure there are no adverse possession rights under the 1925 act mentioned in the event of non payment, as these can be a problem for lenders.  We have a block on sale via deed of covenant plus potential debt collection agency action as our remedial actions available to the management company.  Also check the actual management company as mentioned in the deeds, ours is a Limited company which is intended to be run by resident directors.  The profit-making company we have doing ours (Premier Estates) is a managing agent appointed by the management company but not tied in to the deeds so we can potentially petition resident directors to sack Premier if they don't deliver / aren't good value for money.  So I would check these key areas

flashg67

The residents took over our management co when the builders left - great if you can find someone to do it. Ours only needs a minimal monthly fee to keep a fund for any repairs/maintenance etc