I'm currently going through the ardeous task of purchasing a new build after spending most of the year dicking about with Covid sellers who deserve a hot seat in hell. Anyway, I went for a new build in the end as it was just what I was after and I naively thought it would be more straight forward... ermm nope. I won't go in to the ins and outs of it but the developer who is supposed to be one of the best (they're all shit lets face it) have been a mare. We've had a fair dollop of inaccurate info from them, one of which was the completion date which they got wrong by 3 months! meaning I missed the stamp duty window. I could go on.. but anyway... I digress, my solicitor has found a clause (sec 106 agreement) which is fairly common however within this agreement there is an obligation for us as a homeowner to potentially cover any costs against affordable housing (not to be confused with social housing and aka structural issues for example or indeed works that are needed on those buildings). WHAT THE FUCK? firstly there's not any affordable housing on our specific development, it's on the development down the road which is a sister company (probably the same planning app). Eitherway has anyone seen anything like this before, my solicitor reckons he's never seen anything like it in his career and thinks it a mistake however the developers solicitor seem adamant they won't change it. Our lender is basically saying 'fuck that' in bank speak.
Look out for management fees, these are charges yearly to “ manage “ the development. In reality it is daylight robbery, the management companies do fuck all for this. when you want to put on a conservatory, extension etc, you have to get permission and the barstards will make a charge. Also when you come to sell they will charge you for a information pack. Buyer beware
Thanks mate. I'm already on that one. Actually our management fee's are pretty reasonable luckily.. however I have experienced EXACTLY what you mean on a previous property.
I feel your pain, my missus is trying to sell her flat and we are totally stuck in the 'EWS1' issue, which I think is going to make it un-sellable, and un-mortgageable which is a serious worry... the surveyors are part of the issue.
My mate is an HSE auditor and was telling me about this the other month. Absolute nightmare mate, hope you get it sorted soon!
I’d walk mate. These developer wankers who retain title so you only really lease the home and you have to pay maintenance on is a piss take. And a license to print money!! And should be banned.
I got my fingers burned with this. Original builders weren't much of an issue, however, they sold the lease to a private company after 10yrs. Those f@ckers came on heavy as soon as they took over, controlling who my buildings insurance was with and adding service charges etc, then as previously mentioned, charging all over the place for permissions letters when I wanted a loft conversion and conservatory added. I would never buy owt leasehold ever again.
Thing is tens of thousands don’t know they are leasehold. Sure your solicitor would have mentioned it, but maintenance charges would be a massive alarm bell for me
Watched program on this last week. If you refuse to pay, especially if shared ownership, the fuckers can and will repossess your home and you lose pretty much everything included any equity built up!
Not me personally however a colleague who has now been unable to sell his house because there is a park on the development and they as stated above have to make a payment of let’s say £50 a year for maintenance. However if they do not pay it the house can be reposted so mortgage companies won’t lend on it. Hope you get it sorted pal
Might be a bit simplistic but, if they dicked you on the stamp duty deadline, get your brief to drop a hint you won’t pursue them for this if they remove the erroneous clause. If they won’t, walk away.
I sold a leasehold property about 10 years ago, the maintenance company held my payment records (required by the solicitor) ransom. Absolute bunch of crooks.
Only ever buy a flat with share of freehold. That way you have some control over charges with all the other owners. As you are all flat owners you have an interest in getting value for money. The standard practice is to quote low charges to start then sell the freehold to a specialist management company. They will overcharge for everything.
Although some good news for going forward developments https://www.propertymark.co.uk/advi...asehold-houses-and-a-new-homes-ombudsman.aspx
The vendors of the house I've just bought were buying an apartment in, at the time, a yet to be completed development. Covid threw something of a spanner in the works but the developer was as the helm of our short chain and calling all the shots. Even to the extent that they were insisting that I exchange on the property I was buying without them agreeing to a completion date with my vendors. Turns out they were having problems with suppliers and wanted to tie us all in. In the end my vendors pulled out and thankfully found an apartment with vacant possession. Developers really only care about their bottom line. Loosing a buyer might, in some cases, be inconvenient. However, you can bet your bottom dollar that they won't have a problem finding another buyer if they don't already have a queue of them.
