Freehold property with service charge?

Freehold property with service charge?

0:01 AM, 5th September 2024, About 3 months ago 15

Text Size

Hello, I’m in process of buying a freehold property that has an annual service charge of £500 to maintain parking bays, private gardens etc which is obviously rising on annual basis. Everything is pretty much done just need to sign paperwork, but this uncapped service charge is ticking.

I’m not sure if it would be easy to sell a house in the future that has got service charge of £800 – £1000 /annum ? Is this quite common in newly built estates? This estate was built in 2010.

Any advice would be greatly appreciated.

Thanks,

Adeel

 


Share This Article


Comments

Ricky Spanish

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

20:18 PM, 9th September 2024, About 3 months ago

That is a very common misconception and very far from the truth. Developers aren't even bothering to contact local councils to see if they will adopt the land because they are already in bed with the maintenance companies. They tell homeowners the council won't take on the land thinking they won't question it. After years of research and reading through many TP1 documents I can confirm that it's complete nonsense. Councils are never even approached! These companies are only in it to benefit their profits. They don't see what they're doing as providing a service.

Marlena Topple

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

22:23 PM, 9th September 2024, About 3 months ago

This is often addressed in the planning application stage when councils make it a condition that the site will be privately managed. Many estates have landscaping and amenities that councils don't want to be responsible for. Local CT payers would probably not want to subsidise the maintenance of all of that.

Dennis Forrest

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

8:15 AM, 10th September 2024, About 2 months ago

The freehold residents have very few complaints regarding the management of our development or the costs involved. In fact we all have just received a credit note for £64.12 for an underspend for the period 1st October 22 to 30 September 2023.
I do agree it is is extremely difficult to change the managing agents and that is why in my first post I recommended knocking on doors to get residents opinions re the management of the development.
To a certain extent it is a matter of luck whether you get a good or bad managing agent. When we bought our property we visited the town several times staying in a hotel. We looked at several properties not just on this development but others outside this development. We made an informed choice and have not regretted our decision. Any properties for sale on our development, and many residents are still here since 2014 when they were built, are very popular and sell quite quickly. There is another development much closer to the town centre. Unfortunately all the properties including the houses are leasehold and have service charges of around £2,000. They are very nicely designed houses but the estate agents struggle to sell them.

Colette Jones

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

21:18 PM, 10th September 2024, About 2 months ago

Our estate was built five years ago, and whilst we love where we live, we get very little for the hefty estate management fees we have to pay. The estate has yet to be adopted by the Council, and as a result, those trying to sell have really struggled. My advice to anyone buying a new house is to think very carefully before you do. More people are becoming aware of "fleecehold" and, like leasehold had a bad press will put people off buying in the future.

NewYorkie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:28 AM, 11th September 2024, About 2 months ago

Reply to the comment left by Colette Jones at 10/09/2024 - 21:18
The roads on these fleecehold estates won't be adopted by the council because they know they have not been built well, poor drainage, etc... which will involve the council in ongoing and costly maintenance.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More