New build - service charges

[Bambi14]

We are looking to relocate to Gloucestershire & have been to a few new build sites over the weekend to look at 3bed freehold properties. Where we were briefly informed about a service charge ranging from £150+ a year depending on the development. This is something we weren’t aware of until now and since returning home to do some research, have been horrified by some of the experiences we have seen/read about regarding service charges rising each year etc ..

So basically has anyone any experience of yearly service charges & should we simply not bother with a new build? Or are there actual developments that don’t charge that we can look into instead.
Still looking at older properties too but it seems to have limited our search slightly since we’ve found out about these charges.
TIA X

Run away as fast as you can! We bought our house off plan with help to buy and the service charges were absolutely fine and manageable whilst we lived there. However when we came to sell 8 years down the line the company doing the service charges had been taken over by another company and the communication was appalling. It took us A YEAR to resolve the issues regarding the new homeowners being added to the deeds and it was just stress I could do without. I would never touch a house again that had any sort of service charge. It was so stressful!

I would look very carefully about how the service charges are collected/increased and used. If there is a very specific water tight cap on the increase - eg in line with CPI each April then it will probably be ok. I would not however go with a open increase - you will potentially struggle to get a mortgage on such a property and for good reason. And if you do you will potentially struggle to sell on for the same good reason...

Just run away!!! I bought a leasehold house back in 2008. There is no reason, except to top you off, for a house to be leasehold. Then there was a service charge too. These are totally unregulated and the maintenance company can charge whatever they like.
Mine started at £150 and when I managed to sell 15 years later, and loosing £35,000 in the process, it was just under £1,000.
Luckily it was sold to a landlord cash buyer as no mortgage company would lend on it.
Service charge is just double council tax as the council refuses to adopt the roads and land but still charge you full council tax.

Rip you off not top you off oh dear!

BIL bought a new build last year. He said service charge has doubled (don't know how much it was at the start thought?

Don't do it . Walk away and it'll. e the best financial decision you'll make

Run.

I pulled out of a new build purchase after my solicitor's advice RE service charges (funnily enough, in Gloucestershire). They are entitled to charge what they like, it's not regulated, its basically the management companies making a shit load of easy money.

And all the covenants put me off.

Paying service fees and having covenants really doesn't make it feel like a freehold house!

Think we’ll be certainly be giving a new build a miss then! As soon as we came home and researched about it we were instantly put off!
Just makes house hunting slightly harder as they don’t tend to write on the adverts whether these charges are included… sneaky

My management company for housing estate (not apartments) went into liquidation. No explanation

Council won't cut grass in development as not their land. Have told us to form a residents association and take it in turns to cut the grass or pay privately

Nightmare as not all residents on development willing to get involved so in reality will be left to about 6 of us with support from about 10 others to get estate maintained

Also if we form new company we can't legally make residents pay a charge to us as we're not on deeds.

Run from this!