Freehold House, But Service Charges

[Anon Private]

Hello,

I am thinking of viewing a house, built by Bovis Homes that is freehold, but also has service charges attached. How is this possible? In this case, what is the difference between leasehold and freehold?

The property has a number of NHBC years left. In the circumstances, would this house need a survey?

There is allocated parking which seems odd for a freehold property!

In a detached freehold property, the owner could modify the walls, but in a terraced house, such as this one, then this would not be possible - yet it is free hold!

Thank you

 

[nmb]

I would ask you solicitor to look into why you are expected to pay a service charge for a freehold property - all sounds very strange to me. Is there provision for the service charge to increase in the future? What exactly are you getting for this service charge?

Check this old article, seems it is not as uncommon as we think:-

http://www.telegraph.co.uk/finance/property/advice/9200995/Ask-the-expert-paying-service-charges.html

 

[Anon Private]

Thank you for responding.

From the article you gave, it does seem quite possible. I have only read the agents description of the property. Evidently the service charge is £150/yr (no mention of increase in the future). I know that there is allocated parking, and I expect a portion will be used to maintain the space. I am not sure regarding other facilities/areas. The property is on a fairly new estate.

I have sent a message to the agent, but these agents are not known for their communication with interested parties; their main interest is to promote viewings and then put potential buyers in touch with the vendors.

If the NHBC is still current, is a survey necessary?

Best wishes

 

[SunnyArms]

Hi Anon Private! A leasehold is a property where the owner owns the building but not the land where the building stands. The owner should pay fees to the owner of the land. A freehold is a property where the owner owns both the building and the land it stands on. The former has a limit of stay while the later has no limit.

I want to ask: have you signed any contracts yet? Maybe have a lawyer or two review the contract and the property with you.

If you haven't signed anything yet, may I suggest https://www.opushomes.com/communities/new-kleinburg/register.html? It's an upcoming freehold town. If you register now, you'd get to pick a better plot than the usual process.