Down-valuation on new build flat

Crashy_Time

Good advice.

Crashy_Time

GDB2222 said:

ashnelson34 said:

poolboy said:

If the managing agent is peverel or first port as they now call themselves, I would try and get out of the deal.  Their service charges are a lot higher than they should be.  If they are hard coded into the lease you can't get rid of them and they know it.  A central block will have a highish percentage of renters in so if they aren't hard coded in the lease, you will need I think half of fellow owners to get a change, in my block of c100 flats I got 5 fellow owners to try to get a change.
The service charges on my flat are eye watering, which impacts on the resale.  When I bought 15 years ago they were c 1500gbp pa, about average for a 2 bed with lift.we are having remedial works so I have paid 6k, 4k, 3k in the last 3 years. Conversely, I own a neighbouring flat which is  really well managed, no lift, but I pay 900 pa service charge.  You obviously cannot recover high service chrges from tenants so it is your cost.

Regarding your purchase, if it were me and hindsight is a wonderful thing, I would buy a house.

The developer is called strawberry star, and the lettings agency will be also under strawberry star so neither of the above that you've mentioned. The service charge is currently set at £2.50 per sq.ft which for me comes out at about £1250pa, for the upkeep of the grounds inc. private rooftop gardens, 24/7 concierge amongst other niceties i don't think this is too bad considering.

Thankyou for your advice

Nobody knows what the service charges will be. That depends on the actual costs, and the developer has simply estimated a figure for now. It's pretty much plucked out of the air, as the flats are not even built yet.

Putting yourself in the position of a developer, trying to sell flats, you'd estimate on the low side, wouldn't you?  Very, very low side, if you have any sense. 

You might even subsidise the service charge fund for a year or two, until all the flats are sold. It's just part of the marketing budget.

Yep, some sort of legislation will have to be brought in if they don`t want the market for flats to plummet.