To ask you about your new build estate/maintenance fees

55 replies

Conflictedovernewbuild · 16/01/2023 19:51

We are planning to move from our current money pit home to a new build.

Been reading up on annual estate maintenance fees, the development we are looking at charges this through an ‘estate rentcharge’ which appears to give
the consumer no protection or recourse in case of price hikes or unsatisfactory work. If a resident defaults the company it appears can essentially revert your freehold to a leasehold, known as ‘fleecehold’. Seems some management companies have been selling their contracts to investment companies presumably to profiteer.

We were really invested in this move and honestly feel like walking away because of this.

For those of you in new builds, has this affected you? I’d really like some balance rather than reading horror stories online. We are looking at a David Wilson Homes development in the South.

OP posts:

MigsandTiggs · 17/01/2023 16:53

@Flapjackquack I very much feel that if I want to get any info from the management company I will have to use a freedom of information request. All queries are fielded by a secretary who has a great line in "Sorry but the only person who can answer your question is the Director and he's on holiday at the moment"😡

Original poster

Conflictedovernewbuild · 17/01/2023 17:46

Yougottawork · 17/01/2023 09:15

I'm a solicitor. You are right to be concerned about a rent charge.

There is also a distinction between a regular service charge and a rent charge which you appear to have identified.

I do think there is a risk that these homes will not be acceptable to mainstream lenders in the future, depending on reforms.

At the very least you need to ensure your solicitor makes a s121 exclusion - speak to them about this.

Thank you for this information. It is definitely the rentcharge, which is the mechanism by which they collect the maintenance fees. I’ll ask solicitor to look into s121.

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Letmecirclebacktoyouonthat · 26/07/2024 22:16

Realise this is an old thread but was wondering whether you went ahead with the Estate Rentcharge purchase? Currently looking at a similar scenario and solicitor is advising against going ahead atm.

Original poster

Conflictedovernewbuild · 17/09/2024 17:13

@Letmecirclebacktoyouonthat just saw your post. No we didn’t go ahead because of the way the charge was collected and tbh this has put us off new build estates who collect fees in this way.

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ForRealShaker · 22/09/2024 17:23

Seriously, run away. You do not get to choose how much you pay. You have no recourse to the work being done and they can increase the cost until you can't afford it. Then you won't be able to sell it, because why would anyone buy a freehold property and then still have to pay £250 maintenance a month on top of rates. And your children will have to take over the maintenance cost. No, no no.

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