Freehold House, But Service Charges

Discussion in 'General Property Investment Discussion' started by Anon Private, Jan 15, 2018.

  1. Anon Private

    Anon Private Member

    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
     
  2. nmb

    nmb Well-Known Member

    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/...95/Ask-the-expert-paying-service-charges.html
     
  3. Anon Private

    Anon Private Member

    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
     
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