These are some of the things I wish I knew more about before buying a new build- the service charge for the estate on top of council tax is probably the worst one! Also, choosing the right developer is key!
I'd be very very careful when it comes to new build freehold properties with estate management charges. The fee is £30 per month now while everything is brand new, but what's it going to be when the road needs to be resurfaced? Or if the park gets vandalised? The management fees are uncapped and unregulated. They could quadruple in a year and there's nothing you can do about it. Mortgage lenders are getting nervous about this as the uncertain cost makes affordability difficult to calculate. Clauses in the freehold mean your house could be reposessed by the management company if you don't pay. Developers are glossing over this as 'just a small charge to cut the grass'. But the implications could be much wider. Any potential buyers, DO YOUR RESEARCH. Many new build 'freeholds' are just leaseholds without the ground rent.
Some excellent points there, Sarah Jane, thank you. The service charge has, I know, been rather an issue in the new build estate in our village, it's gone up already in the first eighteen months as it became clear that the Council were not going to take ownership of any part of the grounds, including cutting of the old field hedge that had to remain along the main road edge of the site, emptying dog poo bins, grass cutting, maintenance of the children's play area. Residents are fuming, but helpless..
Did you enjoy living on a new build: were those costs worth it? I viewed 1 or 2 new builds at the start of the year and they left me feeling a bit cold.
Hi Julian- I do like it but I think it varies in terms of the development/developer and even which plot you have on the estate. I used the help to buy scheme when buying my first home which was the main attraction, oh and not being very good at DIY.
Hi do you by any chance know whether Tilia (formerly Kier) is a reputable developer? And is St. Modwen better? I’m equally interested in two properties of them and is down to which one will likely to provide better after-sale service in those 2-years.
Hi Sarah Jane I am 70 years old in September and boy oh boy wasn't aware of all the various add ons since I was in the game back in the 80s ! I also checked out your twitter feed and see you have embarked on a fairly safe way to try and grow your money. I have always thought partnering with a knowledgeable investor and splitting the gains a good idea - but tryining to find a trustworthy person is virtually impossible. Someone very close to me invests in bitcoin variants in Thailand - he makes very good gains but doesn't withdraw them, so exposes himself to spectacular drops which can happen in an instant - take the gains out straight away - he wont listen silly man! 🙃
