'Service charges' after buying freehold council house?

Magst68

We are in the process of buying a council house under the right to buy scheme. We've been told by the council that £300+ must be paid annually for cutting grass and trimming trees (of which aren't very local to us) which is a requirement to buy the house. What's worse is that apparently it only applies to houses sold after 2012, which means only about 20% of the people will be paying this infinite 'service charge' and 100% of the other homeowners will be paying nothing. 

Does anybody know if this is a legal requirement? Can they deny a persons right to buy if they do not agree with these charges? Does anybody know why 2012 was this change over year? Any dialogue with the council begins and ends with 'you have to pay it'.

Thanks for any help. 

macman

If there is a freehold service charge for maintenance of the wider estate and that is written into the deeds of the property you wish to purchase, then yes, you do have to pay it. It makes no difference if you are buying under RTB or as a conventional private purchaser.

AdrianC

Magst68 said:

Can they deny a persons right to buy if they do not agree with these charges?

Almost certainly.

Would you be buying the property freehold with a covenant, or leasehold?

Magst68

AdrianC said:

Magst68 said:

Can they deny a persons right to buy if they do not agree with these charges?

Almost certainly.

Would you be buying the property freehold with a covenant, or leasehold?

Hi, I'm not sure what a covenant is but it is freehold not a leasehold. Also because all the other houses bought before 2012 which is about 80%+ of the properties on the street won't be paying it, meaning we would be the only private freehold having to pay. 

Magst68

macman said:

If there is a freehold service charge for maintenance of the wider estate and that is written into the deeds of the property you wish to purchase, then yes, you do have to pay it. It makes no difference if you are buying under RTB or as a conventional private purchaser.

But does that not conflict with the tenants 'right to buy'? Where in legislation does it say on going charges need to be paid? I am only familiar with the right to buy legislation which states the council must sell. 

AdrianC

The covenant is the legal mechanism through which you would be due to pay the maintenance charge for the estate common areas.

Magst68

AdrianC said:

The covenant is the legal mechanism through which you would be due to pay the maintenance charge for the estate common areas.

I'm sorry I am not sure about that yet. We have only just received an offer, so we are seeking advice before we proceed.

user1977

Magst68 said:

macman said:

If there is a freehold service charge for maintenance of the wider estate and that is written into the deeds of the property you wish to purchase, then yes, you do have to pay it. It makes no difference if you are buying under RTB or as a conventional private purchaser.

But does that not conflict with the tenants 'right to buy'?

No. In general, it's perfectly normal for property ownership to come with obligations, in particular to contribute towards the maintenance of common parts, and there's no exception to that principle in the right to buy.

strawb_shortcake

Could it be that the council only adopted the land in 2012 so no charges were payable beforehand? 
When we purchased under the RTB there was a statement in our contract that they withheld the right to introduce service charges for the first 5 years. Despite there being nowhere nearby that they could possibly start to maintain they would not remove the clause, so chances of them removing an existing charge are most unlikely. 

Are you already paying this fee as part of your rent? 

Also, given the discount, you're still getting a good deal probably not worth fighting over as it appears to be a legitimate charge. That said I'd be more concerned with how they are allowed to increase the charge for inflation in later years 

Magst68

annabanana82 said:

Could it be that the council only adopted the land in 2012 so no charges were payable beforehand? 
When we purchased under the RTB there was a statement in our contract that they withheld the right to introduce service charges for the first 5 years. Despite there being nowhere nearby that they could possibly start to maintain they would not remove the clause, so chances of them removing an existing charge are most unlikely. 

Are you already paying this fee as part of your rent? 

Also, given the discount, you're still getting a good deal probably not worth fighting over as it appears to be a legitimate charge. That said I'd be more concerned with how they are allowed to increase the charge for inflation in later years 

Thanks Anna,

No the house has been in their hands going on a century. It's more the principle than the cost. I do know they have a small piece of grass some streets away that the council have a leasehold on for almost 1000 years. Work out how many generation of my descendants will be paying those costs off  

I've actually had some good news that a resident with my council challenged this fee because she has no verges, bushes etc around or near her home. So I will be taking her steps of complaint  

Exactly, these costs could in theory double or triple. No thank you  

jimbog

Just refuse to buy it under those circumstances and that will certainly give them something to think about