New build Estate Management fees on a freehold

FTBDoom

I recently reserved a plot which is developing by persimmon. However there is an estate management fees of £144 pa, this is not the problem, however, when I did more research, more concern flagged up regarding the price they charge are uncapped, so potentially they can rise to any figures they want, also if one day I decided to sell the house, it could become less attractive 
What are you guys thought about these estate management fees? What's your experience with it?

teachfast

You're right to take note but it's hard to find a new build without these currently. More legislation is coming, apparently. 

Yours sounds very low so has a long way to go. Just watch the roads: will the council adopt? If not, then yours will definitely go up considerably.

jim1999

They are pretty typical.  They're uncapped because they have to cover the costs.  If the road collapses, they aren't going to say "the charge is capped at £150 p.a. so we just won't have a road until 2032 when we can afford it".  On the flipside, they can be managed by people who live there.

The question is whether it's actively managed by a few people who live there, who keep things under control, avoid unnecessary spending and get broad backing from the wider group on big expenses (e.g. landscaping, improvements etc) - or whether nobody wants to get involved and leave it to third parties, who have no real incentive to minimise costs.

FTBDoom

my understanding is that they will not be council adopted. It will be managed by greenbelt according to persimmon

teachfast

jim1999 said:

They are pretty typical.  They're uncapped because they have to cover the costs.  If the road collapses, they aren't going to say "the charge is capped at £150 p.a. so we just won't have a road until 2032 when we can afford it".  On the flipside, they can be managed by people who live there.

The question is whether it's actively managed by a few people who live there, who keep things under control, avoid unnecessary spending and get broad backing from the wider group on big expenses (e.g. landscaping, improvements etc) - or whether nobody wants to get involved and leave it to third parties, who have no real incentive to minimise costs.

No right to self manage, sadly

Gentoo365

It's a bit unfair because you still have to pay the same to the council as someone living in an equivalent value house but do not get the same service from the council.

If a council (or the government) want to have more houses built, they should budget to pay for the additional road maintenance etc. Especially as they will be getting more council tax.

I can fully understand it for blocks with car parks, or where the estate is gated and private but if it's basically a public road it really should be the council's responsibility to use council tax to pay for maintenance.

Titus_Wadd

We lived on a very small estate run by weirdos who have tried to extort £9k from 2 residents last year and the reality of the property law that protects the management company (and builder's) interests does little to protect us.  They can threaten to create a lease on our freehold home but we took a stand (risking this) and refused.  The residents only matched the previous year's fees (about 10 times yours OP).  I wouldn't be grudge paying if there was any actual maintenance being done; we'd factored in this cost when purchasing.

I don't want to sound like the voice of doom but you must ask your solicitor to explain any "worst case senarios you or they can think of.  We took a gamble last year on the management costs being described as "reasonable" but otherwise there's no cap and they can think of a number, and may try it on next year.  Buyer beware.

Sorry to be cryptic but trying to keep details off the interweb pending court action for other factors.

teachfast

Legislation coming soon, hopefully. In the meantime see here: https://www.homeownersrights.net/

Msunderark124

FTBDoom said:

I recently reserved a plot which is developing by persimmon. However there is an estate management fees of £144 pa, this is not the problem, however, when I did more research, more concern flagged up regarding the price they charge are uncapped, so potentially they can rise to any figures they want, also if one day I decided to sell the house, it could become less attractive 
What are you guys thought about these estate management fees? What's your experience with it?

What is it now mine started low then has more then doubled!

FTBDoom

It was £150 when I moved in, now £226