Do new build houses all come with a uncapped rentcharge on the title?

Remark92

princeofpounds said:

Remark92 said:

they will not change any provisions in the transfer as everyone on the estate needs to be under the same contract. Not surprised to be honest, I guess not everything is open to negotiation after all

For the reasons that GDB2222 outlines, it's not really surprising they won't agree.

Personally, I would be ok to buy a property where the estate rentcharge is held by a residents' association. If the lenders really do go nuts on the caps, then there should be a lot of pressure on the Directors to make necessary changes.

I don't think a situation where almost all newbuild freehold houses on unadopted estates (which is probably a majority) become unmortgageable will be a situation that will be permitted to exist by the government. And the rationale for those lenders that have set caps similarly to ground rents is logically weak. 

Yeah I'm pretty sure the residents would all want to push for caps if they realise they can no longer sell. I agree that that would be a pretty bad problem for a lot of people if this scenario does unfold. As I say, we got a mortgage with no issues, and my solicitor said they explained the rentcharge in depth to them. 

It does make me feel quite at ease knowing that we have some control as residents also.

Appreciate your help !

ash4040

Does this only apply to leaseholds? Would be interested to know.

PlumLuck

ash4040 said:

Does this only apply to leaseholds? Would be interested to know.

No, this is for freeholds.
With a leasehold, there is more regulation so the maintenance fee is 'safer'.

user1977

ash4040 said:

Does this only apply to leaseholds? Would be interested to know.

Depends which aspect you mean by "this"! Generally buyers are going to have an interest in the likely level of common charges.

GDB2222

On a brand new estate, nobody knows for sure what the maintenance costs will be long term. The developer naturally estimates on the low side whilst trying to sell all the houses, and they may even do some of the work themselves, so as to keep the cost down. 

Then, of course, once everything is sold, the cost goes up to an economic level, and the punters cry foul. 

princeofpounds

GDB2222 said:

Then, of course, once everything is sold, the cost goes up to an economic level, and the punters cry foul. 

This is often the main driver of charges rising in the early years of an estate. People naturally think there is skullduggery afoot, but usually they don't realise how much the developer cross-subsidises maintenance whilst they are on site. Plus maintenance is naturally very lower in the first couple of years anyway.

Remark92

princeofpounds said:

GDB2222 said:

Then, of course, once everything is sold, the cost goes up to an economic level, and the punters cry foul. 

This is often the main driver of charges rising in the early years of an estate. People naturally think there is skullduggery afoot, but usually they don't realise how much the developer cross-subsidises maintenance whilst they are on site. Plus maintenance is naturally very lower in the first couple of years anyway.

This is good to know, will keep that in mind when the builders hand it over to the residents

jimbo6977

Are these uncapped estate charges the same as what is referred to as "fleece-hold"?

ie all the downsides of a lease (ie there are charges), with none of the protections?