Service charge new build long term plans

coronacaution

Hi everyone, looking for some advice. 
We're due to buy a new build house on a Redrow site in the Wirral, it's set to develop into thousands of houses over the next few years, and will include school, shops, green spaces. Its currently up to phase 3 of 5.
Our question is on the estate management fees, we understand the fees have their own issues around "reasonable charges" and potential to be uncapped, something we're thinking through and calculating the risks involved in this. But to help inform this we had a question with this being a long term development with a few more years of construction on the site such as the school and shops etc, will the estate service charge be charged as soon as we buy, even though the estate isn't finished? Also, is it likely that those additional things such as the build of a school and shop will force the service charge to go up in anyway? Wsnt sure how the costs of those facilities will impact a management fee? Or is it set to just pay for green spaces shrubs etc.

Thanks for any help in this my mind is going round in circles! 

marlot

We bought on a redrow site six years ago.  The service charge only started when the (small) development was completed, and pays for the large nature reserve we have on site.  Also the verges etc.
Our charge has risen slightly less than inflation over the last five years.

Babybelles

We bought our Redrow Home 3 years ago & had to pay the management fees from day 1. We were amongst the first 4 families to move into the estate & have no parks built yet but are still paying these fees.

We’ve argued with the management company & they have refunded us some monies but you will be asked to pay as soon as you purchase your home.

davidmcn

coronacaution said:
Also, is it likely that those additional things such as the build of a school and shop will force the service charge to go up in anyway? 

They're not going to charge you to build schools/shops etc (which probably aren't even being built by Redrow, though it's possible they need to make a contribution to the council to provide the school), just for maintenance of communal parts of the estate.

OldMusicGuy

 We have just moved on to a part completed new development (not Redrow though) and service fees are accruing from our move in date. But there are some green spaces already in place that are being maintained 

Service fees only cover common areas that are part of the development. Unless the development itself is going to own and manage the school and shop, you won't pay for them. However, the estate may be charged for roads and green spaces around these areas if they are not adopted by the local council. You should be able to find this out by looking at the planning submissions on the appropriate planning portal.

HanPop

I have lived on 2 new build estates and have not been charged a penny until the development was finished.

tinytiddles

We bought a new build on a large new community being built; our neighbourhood has been split into small parcels (think there are maybe 15 homes on ours) and we will be paying a management fee known as a parcel charge which pays for maintenance of the communal facilities of the parcel - we just have 3 bin stores and a small access road to cover but some parcels here have lighting, electric gates and all sorts to pay for. Then there is a general community service charge for the facilities available to all such as play park, skate park, country park, green spaces etc. In total it is about £300 per year - we had to pay the fee for the remainder of the financial year for the general charge but nothing yet for the the parcel charge because the developer hasn’t handed it over to the management company yet. You can only be charged from the date that the parcel is handed over with no backdating.