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Can a developer retrospectively charge freehold estate fees and interest?

4 replies

Goldielocks2p22 · 09/07/2026 17:56

Looking for some advice from anyone who’s been through something similar.
I bought a freehold new build a few years ago. When we purchased the property, we were told there would be estate management fees and were given the name of a well-known management company who would be responsible for the estate.
Instead, the developer has set up their own management company and is now demanding payment for management fees going back over the last three years.
What I’m struggling to understand is that the land wasn’t actually transferred into the management company’s ownership until last week. Can they really charge residents for managing land they didn’t even own at the time?
They’ve also added interest to the amount they’re claiming. I’ve checked my TP1 and can’t find any clause that allows them to charge interest (let alone compound interest), so I’ve asked them to point me to the legal basis for it.
Has anyone dealt with anything similar? Can a developer retrospectively charge estate management fees in these circumstances, and can they add interest if the legal documents don’t expressly allow it?
Any advice or similar experiences would be much appreciated.

OP posts:
JohnofWessex · 09/07/2026 19:58

I suggest talking to your neighbours and doing something together, dont let them pick you off one by one.

Goldielocks2p22 · 09/07/2026 21:07

My Neigbours are 50/50. Some have just paid as he’s threaten to take them court and they’re scared

OP posts:
OVienna · 10/07/2026 13:47

Go back toute de suite to the lawyer who helped you buy the property.

Mrscharlieeeee · 10/07/2026 13:54

In the 3 years you haven’t been paying, who has been providing the services covered by the fees? We lived on a new build estate for 9 years and the management company were useless, residents voted to appoint a director for the estate and we changed management companies. I can’t remember all the ins and outs but we were definitely able to appoint a new management company. Whether they can charge interest on back dated fees I’m unsure of. The covenants on our estate essentially meant that if you didn’t pay the fees then the management co could put a lean on your property. It caused a lot of people issues when they came to sell as so many mortgage providers wouldn’t accept it.

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