Estate Service Charge

ArthurS

Doodlebugs said:

We bought a new build and pay a service charge, I think that’s pretty standard for all new developments now? It hasn’t gone up in the 6 years we’ve lived here and we’ve had no issues so far. Possibly because some of the residents are part of the management company. 

A friend bought on a bigger development, I think the council must have adopted the roads and taken over the maintenance of her area at some point as she didn’t have to pay her service charge after a few years. 

Not all new builds are bad. 

Do you mind saying who your management company is and/or the developer of the estate? No worries if not, it would just be good to gather an idea of the companies people have good experiences of versus the bad.

Noneforit999

ArthurS said:

Thanks all - keep the advice and experiences coming - the more the better! 
I just find it odd that if we have to pay an additional charge for maintenance of land the council doesn’t own, why do we not get a reduction in council tax? Otherwise we’re essentially paying for other estates to have their roads and lighting maintained and not our own!

I’m interested to know if anyone has had any experience of an estate charge when something has gone wrong - for example a burst drain? Fallen trees on telephone wire? Etc? Is there a large one off fee asked of the residents? Does your yearly fee sky rocket to accommodate similar future issues?

Ours keeps a contingency fund which they top up each year. Its not huge but they stick a few quid from each houses fees away each year into the fund for one off big issues like that. If it covers it, great. If not, they will split the cost per dwelling (bigger houses pay more cost than smaller ones) and send you a bill. 

The council don't want the expense of maintaining all new build developments. To be fair, the local council still empty your bins, run local services, run the tips etc that you are free to use. If you want a new build, you are almost certainly going to have to pay an estate charge. If you don't want it, buy something not build in the last 10-15 years. 

deltrotter

Bought a two year old house on a new estate last July and my mortgage company, Halifax, would give a mortgage unless we got a deed of variation re the estate management charge.

My solicitor sorted it. Basically says the management company have no hold over the house if I don't pay.

The management fee is £120 per year at the moment and they do a good job of keeping the borders etc tidy. Don't think the residents would do it, so worth it imo.

ArthurS

deltrotter said:

Bought a two year old house on a new estate last July and my mortgage company, Halifax, would give a mortgage unless we got a deed of variation re the estate management charge.

My solicitor sorted it. Basically says the management company have no hold over the house if I don't pay.

The management fee is £120 per year at the moment and they do a good job of keeping the borders etc tidy. Don't think the residents would do it, so worth it imo.

Thank you all - this has been so helpful!