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SarahBell

Service Charge On A House?

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Leasehold is relatively rare for a house? normally only seen for flats/apartments.

The charge seems quite low. So I wonder what it actually covers. Can't be much? I'm guessing it's for building insurance only?

I had a leasehold house, was built to provide accommodation for the mill workers (northern mill town). Iirc ground rent was £1.50 a year.

Seen several developments here that have service charges in gated communities or that have services for the development (e.g. swimming pool or communal waste).

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As for the lease duration......I've never understood the point of assigning (i) such an odd number of years (i.e. why 999 and not 1000 years), and more significantly (ii) a duration so long that our civilisation (culture, sovereignty, laws, etc) are unlikely to exist by the time of expiry, i.e. the duration is such that the ownership can to all intents and purposes be regarded as freehold?

Edited by anonguest

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There is a similar arrangement on the development I live in. The owners contribute to the maintenance of the common parts of the development. It is maintained to a much higher standard than areas where the local authority is responsible for the maintenance of the landscaping.

The highway authority is responsible for the maintenance of the roads and pavements in the development.

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The houses on the opposite side of my street are all leasehold, whereas my side is all freehold. No idea how that came about.

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I saw a reasonably priced house in wales recently. Turns out it was leasehold, only 40 years remaining and was for cash buyers only. No thanks.

Out of curiosity.....what was the asking price? and how did it compare to the price of comparable/identical houses in the same street/immediate area that are not leasehold?

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Out of curiosity.....what was the asking price? and how did it compare to the price of comparable/identical houses in the same street/immediate area that are not leasehold?

140k, was rural so nothing on same street. Other houses similar area about 250k probably.

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140k, was rural so nothing on same street. Other houses similar area about 250k probably.

You can always ask the freeholder if he wants to sell the freehold. Often the ground rent is negligble these days, there's a market for selling freeholds.

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And who's to say the service charge won't double or triple year on year?

Yes Indeed, I saw a tv programme some time ago complaining about large service charge increases.

I have recently come across two cases of houses with service charges. I too would avoid them. I know the first house was freehold, but not sure about the second one.

This house says

http://www.rightmove.co.uk/property-for-sale/property-55913234.html?premiumA=true

"We are informed by the vendors that the property is Freehold. The Maintenance Charge of approx £216.00 per annum is payable half yearly for the upkeep of communal areas and feature planters."

We viewed a house similiar to the following one, and it was not until I questioned the agent at the viewing, that I was told there was a service charge made for the communal areas on this estate. It used to be an RAF camp.

http://www.rightmove.co.uk/property-for-sale/property-57434144.html

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Yes Indeed, I saw a tv programme some time ago complaining about large service charge increases.

I have recently come across two cases of houses with service charges. I too would avoid them. I know the first house was freehold, but not sure about the second one.

This house says

http://www.rightmove.co.uk/property-for-sale/property-55913234.html?premiumA=true

"We are informed by the vendors that the property is Freehold. The Maintenance Charge of approx £216.00 per annum is payable half yearly for the upkeep of communal areas and feature planters."

We viewed a house similiar to the following one, and it was not until I questioned the agent at the viewing, that I was told there was a service charge made for the communal areas on this estate. It used to be an RAF camp.

http://www.rightmove.co.uk/property-for-sale/property-57434144.html

What's the state dependency in Conwy, the council tax is fecking ridiculous together with the service charge that amounts to £173 of service charges a month. Almost what a mortgage should be in itself. Edited by longtomsilver

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What's the state dependency in Conwy, the council tax is fecking ridiculous together with the service charge that amounts to £173 of service charges a month. Almost what a mortgage should be in itself.

Yes indeed..... and all that council tax is hardly value for money, if for example, they are only going to empty your bin every 3 weeks now, and every 4 weeks in one area!

http://www.bbc.co.uk/news/uk-wales-north-west-wales-35632939

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Yes indeed..... and all that council tax is hardly value for money, if for example, they are only going to empty your bin every 3 weeks now, and every 4 weeks in one area!

http://www.bbc.co.uk/news/uk-wales-north-west-wales-35632939

A tiny, tiny percentage of your council tax is spent on bin collection.

Almost all of it goes to adult social care (old peoples homes) and children social care (looked after children) with another large chunk for transport (road maintenance), everything else is a drop in the ocean.

As an example, keeping one relatively healthy 90 year old in a home costs £600 a week from council funds. That is about the same as the rubbish collection for 15 houses for a year. So if one village has one elderly person who requires care it will cost more than collecting all their rubbish for a year.

With a 40% reduction in central government funding councils have to cut where they can.

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I live on a small private estate in France. 65 houses. Pay 50€ / month charges. Covers roads, lighting, gardening maintenance for external trees/bushes etc, sewerage maintenance and communal swimming pool ( 15m x 8m). Seems quite a good deal compared to other places I read about. Rates for the holiday appartments on the coast are around 300-500€ / month. A rip-off. trying to sell these on can be problematic due to the increasing charges.

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http://www.bbc.co.uk/news/business-35762763

The survey suggests that leaseholders of newly-built properties are paying a lot more in these charges than the general average of £1,863. "Service charges are often a hidden cost, which should be factored in when considering the affordability of a property,"

"In some cases service charges are uncapped and can escalate rapidly

These charges are incredibly high and uncapped, so surely only an idiot would not "factor in" such costs when buying!

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