Service charges on new build 'communities'

[stormy]

Hello.

Not sure if anyone can help me or not but I have reserved a small Bovis home (2 Bedroom) on a development as seen here:

http://www.bovishomes.co.uk/Developm...2_Siteplan.jpg

The property is "Freehold" and when I reserved it last week the sales manager quoted a service charge for the "community" for works, gardening, roads, communal carparks etc at being in the "region of ?100 pa" which I thought, fine.

Today she calls me to inform me she has the details and it?s actually ?272 per annum, which to me looks like daylight robbery. I am buying Plot 27 and as you can see there is bloody nothing that I can see which would warrant a charge of ?272 pa. I queried this only to be told "No one else has complained". Obviously other people have money to burn.

I know to some people ?272 is not much but for a single homeowner, it?s going to be a big deal to me. It?s for example, a LOT more than my buildings and contents insurance will cost me.

Having spoken now to the area sales manager, I asked why the new homes they had built on another plot of land about 100 yards away from mine which had communal carparking spaces etc didnt have service charges.

She didnt know but is apparently checking for me. Surely it should be my resposibility to service my own property and car park space which I would much rather do that pay someone nearly ?300 a year!

I suppose customer service is none existent these days. I am begining to question if I should indeed exchange or not but its going to throw away some paid solicitors fees, mortgage arrangement fees and my reservation fee.

Why do I have to pay service/management contract fees to a third party if the property is Freehold, does it mean the Council want nothing to do with this area? (Which would seem odd concidering they are getting a brand new Police station for their trouble). Also I will in effect be paying Council tax and Management fees.

Does it mean the council don't have any responsibility for this land?

As you can see from the plot map, there is about a full football pitch worth of grass to cut be it the council or management company that do it.

Could my ?270 fee climb and climb and climb every year, its to me a licence to print money and will no doubt affect the re-sale value of my house.

Not very happy in East Yorks

Mike

[Tony]

Hi,

Were you told in writing that the fees would be ?100 or was it verbal? There is a big difference between ?100 and ?272. Were you the first to reserve, is that why they didn't know it was ?272? Had they just phoned round all the others prior to phoning you to tell them it would be ?272.

It is probably worth asking to see the management fee contract to find out if there are limits on yearly rises.

Looking at the site plan it looks like parking might be an issue on the site with most people having at least one car there could be cars everywhere.

Tony

[stormy]

Unfortunately it was a verbal "in the region of 100". I didnt even give it much thought as I didnt think it would be an issue, when you have 1000 of questions at the time of reservation its so hard to know it all and its my first house

I assume she was ringing around today to let people who have reserved know its going to be ?272. Apparently the 1 bedroom places will be expect to pay double as they have common areas etc.

I can't check the contract as yet, as I dont have a copy but I will indeed be doing just that.

What I find odd is why would a property management firm be given a contract when its normally the job of the council to do such works? Its in essence adding ?272 to my yearly council tax bill.

So much for first time buyer homes

Each plot has only 1 allocated parking space, so yeh tough luck if you are a couple with 2 cars. There certainly wont be enough communal spaces to go around.

Mike

[Tony]

You may be eligible for a reduction in Council tax if the roads are "unadopted". It might be worth giving the Council a ring :idea:

Not sure if it is the same in England, but here in NI they recently made it illegal to charge 'Ground Rent', ie new properties had to be Freehold and not Leasehold. So then what they started to do was to provide a common landscaped area, 'to enhance the appearance etc of the development', but then they charge the purchaser a 'Maintence Fee / Service Charge' instead. Same as the old ground rent, but different. Coincidentally, private gardens got smaller around the same time!

[stormy]

Yeh, I am still trying to find out how long this "service charge" period is, and also if the road is actually adopted by the council. (which would be odd if it isnt, concidering the Police station access it will be).

Surely it can't be an indefinite thing for the maintenance contract? I am hopping that its 5 years or so then the residents of the community can make alternative arrangements or negotiate. Otherwise what's to stop the management company just hiking the price every year to fleece us all or is this what happens generally?

The builder maintains the plot is freehold, so I am at a loss as to why we have to pay so much. Especially the poor folks in the 1 bedroom ones who will be paying almost ?600pa.

I wouldn't mind but you cant exactly call the "green" areas communal gardens, its about the size of 2 tennis courts.

My solicitor seems to be never available to be honest (and I didn't even go with the one recommended by the builder lol). I even went on a recommendation from a number of people.

Obviously she has better things to do that worry about my conveyancy :P

What narks me off is that these are supposed to be aimed at first time buyers, first time buyers don't want the burden of never ending gardening fee's to add to all the extra expense.

Hmmm, will see how it goes.

Maybe they will make the area really attractive! I can live in hope

Mike

Can you expand on reduced council tax if the roads are unadopted by the council as I've never heard of it and would be interested to see if we are eligible to claim this as we are living on a building site at the moment.

[Tony]

The value of a property is deemed to be lower if the road is unadopted, so the house could be in a lower band. However, with new builds the road is unadopted for a relatively short period of time, so it may not be possible to get a reduction. It is just a theory, I have never tried this and don't know anyone who has.

Hope this helps,

Tony

Thanks for that. Probably not entitled to it then as they banded the house just after we moved in and I can't see them giving me any kind of discount without a fight.

Sarah