Freehold New Builds and their related Maintenance Charge Fees etc

MattMattMattUK

Fufu3333 said:

Thanks all for your comments.

I have probably jumped the gun on this, as my purchase hasn't got that far yet.  Discussions still ongoing between developer and the council. 

I haven't received any paperwork from solicitor yet so not seen any deeds yet but I had been reading about making sure a Deed of Variation was drawn up in relation to estate management charges (Section 121 of the Land & Property Act 1925) to avoid issues when it came to  remortgaging or selling. 

Depending on what the deeds and mortgage company say, I would definitely be wanting one in place. 

As others mention with relation to a "deed of variation" only being something that you do once a deed has been issued. However you seem to be missing the issue entirely that a new build developer is not going to adjust the deeds of their development just for one difficult customer, you buy on their terms, or you do not buy, you can negotiate on price, but not on ongoing management charges because those are charged based on costs on an ongoing basis. 

eddddy

MattMattMattUK said:

As others mention with relation to a "deed of variation" only being something that you do once a deed has been issued. However you seem to be missing the issue entirely that a new build developer is not going to adjust the deeds of their development just for one difficult customer, you buy on their terms, or you do not buy, you can negotiate on price, but not on ongoing management charges because those are charged based on costs on an ongoing basis. 

I think the OP has misunderstood something they've read.

The OP seems to be specifically worried about the deed giving the freeholder the right to take possession of the property, if management fees are not paid (under Section 121 of the Land & Property Act 1925)

In reality, the deed won't do that anyway.

It would make the properties unmortgageable. So the developer wouldn't be able to sell any properties.