New Build Estate Service Fees - when should we start paying.

Janis107

In October 2021 we moved into our new home.  The site will not be finished until around May 2022.
In initial talks with the site sales agent, we asked when would we have to start paying the service charge, we were told not until the site was handed over to the maintenance service company.
We have received an application for payment fo the full annual service fee for the period 01/01/2021 to 01/01/2022.
I queried this and we were told that it was to cover their 2022 service charge budget, including filing accounts to Companies house.  Which at the moment is registered under the builders solicitors address.
We have no problem paying the service fee but feel that either we don’t start paying it until the site has been handed over or it is charged on a pro rata based on the estimated site completion date of May 2022.
Has anyone else come across this.

TripleH

I would query why you are being charged for all of 2021 if you didn't move in until October.

When was the first house finished? I would argue why I have to pay a service charge on a site for a period if I could not access the site at that point to live there. If I bought a leasehold flat I would pay for repairs going forward but would argue the previous owner should pay for charges when they owned the property, I don't see how this is different.

Have a Happy New Year

Janis107

Sorry, my error, the current charge is for the period 01/01-31/12/2022.

TripleH

Ah, in that case do you know what the service charge is for?

You might need to refer to your contract to see what it says,  I don't think you can rely upon what the sales agent says to justify not paying.

Did you pay a pro-rata amount on completion (check completion statement) for 2021? If so then again you may be stuck paying the full amount.

Personally I would pay the full amount but keep hassling the company as to why they said one thing but reality is different. For it by email so you have a record of the conversation.

Janis107

Yes. They have submitted a budget for 2022. Which is in line with the charge we were advised of, so a full years fee.
I have also checked companies house, and the Management Company is registered to the builder solicitors, no mention as yet of this service company.

TripleH

In some regards ignore the address of the registered office. That doesn't need to be the trading address.

I would check that you are being billed the correct amount. If the estate will have 40 houses when complete, younger to push them to explain why if you are currently being billed more than 1/40th  of the cost.

chanz4

They will tidy the trees around the site about it

Lunchbox

We had a similar situation when we moved into our development. In our case, most of it was refunded when the first year actual spend was calculated, as the freeholder had spent very little as the site hadn’t been handed over. Service charges are estimated and the estimate billed in advance; you won’t actually accrue charges for some maintenance items until the site is handed over, so the agent was sort of correct.

Janis107

Hi,
First of all Happy New Year everyone.
Thank you all for your help and advice. 
Lunchbox, the problem we have with the estimate is that it is for the full year, i.e. 01/01-31/12/22, but they do not take the site over until probably around May/June this year.
If they said 50% now that would be fine.  
Anyway, we are waiting on a response form an email we sent to them on Friday, so hopefully we will receive a reply tomorrow. tomorrow.
Once again, many thanks.