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longtomsilver

Annual Management Fee On Freehold?

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We are almost decided on buying a 'new' new build home and as I was about to place the £500 reservation fee the sales agent matter of factly presented a leaflet stating an annual Management fee of £295 for the unadopted parts of the development. I only thought this to be possible on leasehold properties whereas this is a freehold allegedly.

House is costing £320,000 with a 30% deposit. What would you do?

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Any plans for the local authority to adopt the pavements and roads in the future?

First question that should be asked ^^^ and the second question would have to be why the local authority are not adopting these parts i would be asking the local authority as well as the developer, i would also ask specifically what parts are not being adopted . ...smells fishy to me

I know of an instance around my way where the local council and water board refused to adopt the roads pavements /sewers/drains on a new build estate. due to a major design/construction flaw with the drainage system ,the developer went into administration very soon after the problem was discovered

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Thanks for the replies so far...

ltl I asked to see the break down of costs and saw that they wanted £6k per annum for maintenance of the play facilities and on the other hand told me the council had already adopted these facilities. Set alarms bells and couldn't give me a reasonable explanation.

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This is an extreme example but it`s the unknown that would worry me http://www.walesonline.co.uk/news/wales-news/vale-glamorgan-council-negotiate-welsh-2112800 this is still not sorted today as far as im aware of

Call me paranoid but if its a play area who would be responsible if there was a death/ serious injury due to faulty structures-roundabouts swings etc ?

Could this be the reason for the local council refusing to adopt the play area

Edit ,ah they have already adopted the facilities sounds strange that

Edited by long time lurking

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This type of arrangement is becoming more common. The local authority do not want the responsibility and expense of maintaining the landscaping that their planning departments insist on so the responsibility and expense has to be met by someone. It is immaterial whether the properties responsible for meeting the cost are freehold or leasehold. On the development I live in there is a similar arrangement.

There is a major advantage in that the communal landscaped areas of the development are maintained to a much higher standard by the management company than they would be if maintained by the local authority. The grassed areas are mowed regularly, the trees and shrubs are pruned, pavements are kept clear of moss and algae.

There is also a play area for young children with swings and play equipment, this was paid for by the developer as part of the S106 contribution. However the play area is maintained by the local authority, not the management company.

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I also have a new build with this arrangement and pay approx £15 per month for which the grass in front of the properties is regularly mown plus rubbish removed and shrubs pruned etc. My house is freehold but a carport which has a "coach-house" flat above is leasehold. There are also leasehold flats on the same development. I was under the impression that the management company manages the leasehold bits of the development so that is why all the freehold houses have some element of their property as leasehold....but I could be wrong. So far (6years) it's been OK and luckily the annual management fee hasn't risen although it could in the future.

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Well we've been declined our mortgage by the underwriters at FD. Apparently we don't meet their lending criteria. Annual salary £180k (including bonuses), £100,000 deposit and £223,000 mortgage. f***'em

*we have no debts other than a £80k mortgage on our current home worth £180k which we were hoping to keep and rent out.

Wife is actually delighted, a little HPC ' er coming out in her. We'll just cclear the £80k and save like crazy in time for the 2020 house price crash :)

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