To think our neighbours are ridiculous for paying this and refuse to pay my "share"

[Hiphopapotamus4]

A house on our road came up for sale recently (its empty at the moment, was rented) and as you do, I had a nosey at the particulars on Right Move. In the description in says that there is a service charge of £500 per year. I thought this was odd as we pay no such charge and it's not a flat or leasehold or anything like that so I couldn't figure out what the charge was for.

I ran into another neighbour who made a comment about the price it was for sale for so I commented that I noticed it had a service charge and how odd that was. Neighbour gave me a funny look and said "yes, well we all pay the service charge" I said that we don't and have never been told anything about it or asked for payment. I asked her what it was for exactly and she didn't really know but kept saying "we all have to pay it".

Now, she has obviously been and spoken to some of the other neighbours about this and they are now annoyed that we don't pay when everyone else does. They want us to start paying it so that their share becomes less. However NOBODY knows what it is for, they all just pay it without questioning it. I said I wouldn't be paying anything unless they can tell me what it is for and what "service" I am receiving.

AIBU to think they have all been a bit foolish to pay so much money without questioning it and that they should stop paying it/find out what it's for rather than ask me to contribute!

To be clear, this is a fairly normal road with no communal areas and no "services" (other than the usual bin collections etc). Apparently the invoice just says "service charge" and does not specify exactly what service it is.

(I am currently the "bad neighbour" and need to make amends - may have to bribe the neighbourhood with homemade chocolate brownies then convince them to stage a mass refusal of payment and demand for refunds!)

[GwenStaceyRocks]

It wouldn't necessarily be in your deeds. We have a factoring fee that isn't mentioned in our deeds because we bought before a factor was appointed.
If they're paying the Council then it's likely to be connected to the road or the lighting.
You should try to find out before you receive a massive backdated bill.

[Kennethwasmyfriend]

Protection money.

[Waterlemon]

Your solicitor would have picked up on any charges to your property.

If ex council, maybe some of the earlier right-to-buys were leasehold but later RTB freehold? And the neighbours are paying a leasehold fee or possibly ground rent?

[PenguinOfDoom]

Apologies, I missed the bit where they said they were paying it to the council. In that case, I'd contact them and ask the same question.

[Siwdmae]

Phone the agent and pretend you're interested in buying the house. Ask what the service charge is for. Very curious.

[MovingOnUpMovingOnOut]

Pmsl at "protection money"

[YouWouldntLetItLie]

and this didn't come up at all during the conveyancing process? I'd want to see invoices too before I paid a penny to anyone. If it was a council charge, surely they would have tracked you down and invoiced you before now, via your council tax/electoral roll details?

[BowiesBlueEye]

Insta too late

We had a head honcho soldier dude from the Army come to the house after 6 months of being here (we put in a planning application and it flagged up at M.O.D) to make sure we paid or we'd lose that part of the garden (a considerable amount of it)

We chased all parties involved to complain but we would have needed to go through court for compensation and we had no money left after buying the house 😬

[hollyisalovelyname]

Strange.
I would ask the estate agent what it is for.

[Qwebec]

If you want to calm you neighbors you can always say your DP paid it along other fees and just never told you.
I would also call the agent to see what he knows about the 500£

[Hulababy]

We live on a relatively new build estate (well, been here 12 years or so but people sill refer to it as 'new.'
However, we pay ours to the management company which has proper representatives and annual meetings, etc. There is a solicitors and accountants firm include too which handle the legal and financial side of things. They meet annually and we receive a letter about that, and also seasonal newsletters.
The money is paid by every household - set amount for any house (regardless of size) and any apartment (they pay more as theirs also covers apartment living costs and maintenance. Its not that much though - about £150 a year.
This pays for all the maintenance on the estate - landscaping, gardening, the children's play park, multi purpose pitch, etc. Ours also pays for gritting if the temperature drops before a certain level. We have a sink fund to cover any major additional costs too.

However, this is included on the particulars of every house/apartment with an explanation of what the costs are, who paid for, when paid and what it covers, and every household is invoiced annually. If people don't pay, even after reminders, then legal action is taken accordingly.

But this is part of living here and it is one of the conditions of the sale.

[BowiesBlueEye]

I really hope it's not a scam OP for the sake of your poor neighbours.

[Hulababy]

Ours are all freeholds, btw and not private roads. The estate is now gated or anything, so anyone can use the play park, landscaped areas, sports fields and pitch, etc. but the residents do pay for it all through the service charge.

[Middleoftheroad]

Need to know how this pans out.

Sounds like some of the pensioners may be being fleeced.
But by whom?
You say you may save them £500pcm but what about the years of payments? That's ££££££££££

[Waterlemon]

Just seen that it's not ex council!

I remember a post on here years ago about someone being made to pay towards upkeep of local church, as their property was built on what was originally land belonging to the church.

Maybe it's some old covenant?

[Pumperthepumper]

Is it the factors' fee?

[Hont1986]

Do they mean council tax? Although £500/yr council tax seems unlikely.

[QuietCorday]

"Apparently they pay it to the council."

I would question this. £500 a year is a hellova lot of money for an extra council charge on freehold houses.

And if they were paying it to the council, then surely it would be in the form of a precept on a council tax bill. And I can't see how a council could levy that kind of precept in the first place and miss you out.

The only thing I can think of it that it is some sort of private parish/landed estate charge, but then that would have come up in your searches when you bought the house.

It is all very odd.

[LightastheBreeze]

Can you link to the house with the charge or is it too identifying

[MyCalmX]

Let me know when you've found out what it's for

[GlitteryFluff]

How strange.
marking place for outcome

[Hulababy]

When you bought the property the solicitor should have told you about it. Where we are you have to become a shareholder of the management company on moving in/purchasing the property. It is then the assigned management company who deals with it all.

[LuluLovesFruitcakes]

I lost it at "protection money"

[onemorecakeplease]

Be interesting to see what the invoice says!!