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Original poster

New build apartment - need advice

77 replies

Gifgaf · 14/04/2025 02:44

We are FTB and after lots of research and viewings we have come across an actual dream home located in a perfect location. The new build is very lux in every aspect with 24/7 conceriage and blue chip businesses below and private podium and winter gardens etc. The apartment we want is on high demand because there is not enough 3x beds in the building.

However, we are super uncertain and split on what to do because we are hearing horror stories of service charge increases and people being presented with large bills that they can't afford.

What are people's experience with new builds and does it make much of a difference in having a super lux one compared to maybe an average one in terms of service charge and building works etc.?

On the contrary, me and DH have a house each to our name (selling them is out of the question ) and we are in a financially stable position as we are but it is now way too small for our family and should we decide to take this new build, we will more likely be very difference financial position and will have to be extremely conservative on our spending and constant budgeting.

I am really looking for valuable advise, authentic experiences and opinions.

It's a huge decision and I am worried about making the wrong one especially have small children.

OP posts:
TippledPink · 14/04/2025 02:50

You are FTB but you both have a house each, how does that work? That would make you a second home owner.

If there are big luxurious things the service charge has to cover, there is always going to be a risk the service charge will increase year on year to an unaffordable rate. For example, paying for staffing 24/7 will only get more expensive as wages increase year on year.

I own a new build, service charge is around £230 a year, only been here 2 years so it hasn't risen yet. But we don't have additional extras it will be paying for, just the usual garden maintenance, electricity for street lights etc etc.

Original poster
Gifgaf · 14/04/2025 03:06

TippledPink · 14/04/2025 02:50

You are FTB but you both have a house each, how does that work? That would make you a second home owner.

If there are big luxurious things the service charge has to cover, there is always going to be a risk the service charge will increase year on year to an unaffordable rate. For example, paying for staffing 24/7 will only get more expensive as wages increase year on year.

I own a new build, service charge is around £230 a year, only been here 2 years so it hasn't risen yet. But we don't have additional extras it will be paying for, just the usual garden maintenance, electricity for street lights etc etc.

We dont own them but are renting as HA but have them for indefinite. Thankfully we are now in a position to buy which would make us FTB. I was more trying to build a picture of where we are and what we could end up being.

The service charge on this place we are looking is c.£500. I am worried we may be presented with all the face front luxuries of it but come to later regret or be slapped with a large bill.

I am wondering is it worth investing in one or best to save more and buy a freehold in the next couple of years instead.

OP posts:
Washingupdone · 14/04/2025 03:27

Don’t buy a flat if you can help it, the service charges will become huge and just because it is a new build doesn’t mean to say there will be no problems.

Nat6999 · 14/04/2025 03:52

Don't touch a flat, the money you would be paying in service charges will likely go up with a bump once the block is fully occupied, that money would be better spent on a higher mortgage for a house or to overpay your mortgage. Have you tried to get a bigger HA property, if you are secure tenants, you have the right to buy, it is only a small discount, but if the HA maintain the houses we'll you would at least know it is structurally sound.

HellsBalls · 14/04/2025 06:07

I’ve never heard of such a low service charge for ‘Lux’ apartments with 24 hour concierge.

QueenOfWeeds · 14/04/2025 06:18

My colleague had a v nice apartment in a popular part of London with a large service charge but that included parking in a secure garage and the building’s 24/7 gym and pool. They thought it was good value, and were happy to pay it, but really struggled finding a buyer because everyone just saw the headline figure for service charge and didn’t bother looking into what that included.
I agree £500 seems low for a luxury offering.

cakeandteaandcake · 14/04/2025 06:47

Why would you say you have houses to your name and selling them is out of the question, when they are in fact rented?

Why is having blue chip businesses under your apartment a selling point?

Beachwaves127 · 14/04/2025 07:18

Where in the U.K. are you? The lux ones in London are £4K pa plus for service charge a year. It’s basically rental costs. It’s ok if you use the amenities I suppose but some of the jazzy stuff do you actually need

MrsWobble3 · 14/04/2025 07:27

I bought a new build apartment more than 10 years ago. Service charge is £500 a month. No gym or pool and concierge is 9-5. Are you sure you’ve read the details correctly?

CandidHedgehog · 14/04/2025 07:57

So is the £500 the monthly service charge?

This is not something I’d be interested in - the risk of the service charge soaring would be too much for me but it’s a question of the risk you are willing to take.

Also the area. I think multi million flats in London will usually have a market but if the development is in a small town where most people want houses, you may have difficulty selling.

lactofree · 14/04/2025 08:00

I watched an interesting doc on leasehold and service charges last week. Can’t remember what it was called but if you can find it I’d recommend it

Original poster
Gifgaf · 14/04/2025 08:11

HellsBalls · 14/04/2025 06:07

I’ve never heard of such a low service charge for ‘Lux’ apartments with 24 hour concierge.

Per month not per year

OP posts:
Original poster
Gifgaf · 14/04/2025 08:14

I am in London and the location of this is in Zone 1 with view ranges to the shard and London eye so you can get a taste of where it might be and service charge is £500 per month and the amenities they said there will be a gym also and a swimming pool.

OP posts:
Original poster
Gifgaf · 14/04/2025 08:15

lactofree · 14/04/2025 08:00

I watched an interesting doc on leasehold and service charges last week. Can’t remember what it was called but if you can find it I’d recommend it

I've been watching a few from BBC but can't remember the name tbh

OP posts:
Quiceinalifetime · 14/04/2025 08:16

Personally I wouldn’t touch it with a barge pole. Can’t you buy a freehold house big enough for your family instead?

Original poster
Gifgaf · 14/04/2025 08:17

CandidHedgehog · 14/04/2025 07:57

So is the £500 the monthly service charge?

This is not something I’d be interested in - the risk of the service charge soaring would be too much for me but it’s a question of the risk you are willing to take.

Also the area. I think multi million flats in London will usually have a market but if the development is in a small town where most people want houses, you may have difficulty selling.

If it was £500 a year I wouldn't feel too worried but it's per months and developers will usually have it at its lowest point in order to sell and I am worried what if / when they will increase it and I may end up paying service charge as high as the cost of rent which I won't be able to afford.

The pros of the house are definitely location and transport link so it's not hidden

OP posts:
Quiceinalifetime · 14/04/2025 08:19

Washingupdone · 14/04/2025 03:27

Don’t buy a flat if you can help it, the service charges will become huge and just because it is a new build doesn’t mean to say there will be no problems.

Rather the opposite; the quality of new builds can be very poor and you will be the ones to deal with them.

DoNoTakeNo · 14/04/2025 08:20

From a different angle, it’s not exactly fair of you to have two HA homes at all, as a married couple, with or without children - you’re taking an affordable home from one family at least. If you take a luxury flat then you’re taking two homes. Sort yourselves out please!!

Jazz7 · 14/04/2025 08:20

Wouldn’t consider it with small children. I would want a house with its own garden where they could be kept an eye on from the window as they grew. £6000 a year for extras you might not use might be better spent on higher mortgage or reducing a mortgage quicker. Or as previous poster suggested try for bigger one from your current HA then buy that

Original poster
Gifgaf · 14/04/2025 08:20

Quiceinalifetime · 14/04/2025 08:16

Personally I wouldn’t touch it with a barge pole. Can’t you buy a freehold house big enough for your family instead?

That is what I really wanted but where we want a house essentially we can't afford because the payments per month are way too much plus stamp duty is the cost of a whole deposit.

OP posts:
Original poster
Gifgaf · 14/04/2025 08:24

DoNoTakeNo · 14/04/2025 08:20

From a different angle, it’s not exactly fair of you to have two HA homes at all, as a married couple, with or without children - you’re taking an affordable home from one family at least. If you take a luxury flat then you’re taking two homes. Sort yourselves out please!!

Well we were both young and very much in need and homelss when we got it. I was a single mum with nothing so I don't feel bad at all, I am not a scrounger and I have worked hard and put money back into the economy for years. Now that we can afford to buy is exactly what we are doing.

OP posts:
OkayLetMeKnowHowItGoes · 14/04/2025 08:28

So will your two HA properties return to the HA when you buy, or are you planning on retaining your tenancies?

Original poster
Gifgaf · 14/04/2025 08:28

Jazz7 · 14/04/2025 08:20

Wouldn’t consider it with small children. I would want a house with its own garden where they could be kept an eye on from the window as they grew. £6000 a year for extras you might not use might be better spent on higher mortgage or reducing a mortgage quicker. Or as previous poster suggested try for bigger one from your current HA then buy that

The dream would have been a house with a garden but the prices are so extremely high where we are looking with monthly costs unaffordable for us. We can make the payments for this apartment but it's almost just about but it's that service charge that has me in a chokehold.

OP posts:
Mischance · 14/04/2025 08:29

Buying a flat with young children? - sounds a strange decision to me. Most people in that situation are wanting to get out of a flat and find somewhere with a garden.

Original poster
Gifgaf · 14/04/2025 08:29

OkayLetMeKnowHowItGoes · 14/04/2025 08:28

So will your two HA properties return to the HA when you buy, or are you planning on retaining your tenancies?

They will have to be returned

OP posts: