Any thoughts on new build 'Fleecehold'?

Any thoughts on new build ‘Fleecehold’?

New build homes with hidden estate charges and fees highlighted in a residential development
12:02 AM, 30th April 2026, 4 days ago 12

Hello, I am thinking of buying a NEW build on an estate where the developer wants to charge £252 per year for ‘kids playgrounds and maintenance of the verges’ – and they want to charge this as soon as you move in, before any playground or verges exist!

Unfortunately, this is not capped, nor is the yearly rise. I am very sceptical that once the builders hand this over to a management company, which unlike leasehold, cannot be changed by the residents, then this charge will become the new leasehold cash cow.

The ‘sales’ person ensures me the rises will be ‘reasonable’ but can’t give me a guarantee – I think we all know what that means.

Additionally, the broadband is initially (2 years I think) through a company appointed by the builders, and is not one of the recognised broadband providers.

I would be interested in any thoughts on these points, or anyone with experience of these.

Thank you,

Derek


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Comments

  • Member Since January 2024 - Comments: 7

    9:55 AM, 30th April 2026, About 3 days ago

    why would you want to buy ANY leasehold property. why do you want additional charges you have no control over. they will tell you anything till you have boufht it. then your problems start.

  • Member Since July 2014 - Comments: 87

    10:10 AM, 30th April 2026, About 3 days ago

    Reply to the comment left by Graham Tisdale at 30/04/2026 – 09:55
    It’s usual for a Freehold property on a new build estate to include a service charges for the purpose of maintaining the estate.

  • Member Since August 2025 - Comments: 1

    10:41 AM, 30th April 2026, About 3 days ago

    Reply to the comment left by Graham Tisdale at 30/04/2026 – 09:55
    I would never by a new build property
    Buy a freehold established house

  • Member Since October 2022 - Comments: 413

    10:49 AM, 30th April 2026, About 3 days ago

    Read the new Leasehold and Reform Act 2024 and there may be reference to do with leaseholders having the same rights under Estate Service charges as the leaseholder rights and protections for variable maintenance cost due under your lease under Landlord & Tenant Act.

    You needto check with your MP the progress of this Bill through Parliament. It’s also available to read on line to see what has been passed.

    What does your lease say about the Estate service charges which is in addition to the block maintenance service charge.

    I would wait.

  • Member Since February 2024 - Comments: 73

    11:24 AM, 30th April 2026, About 3 days ago

    Do not touch at all. Service charges could double every year, so house value drops to nothing! You could loose both ways

  • Member Since May 2015 - Comments: 2208 - Articles: 2

    11:36 AM, 30th April 2026, About 3 days ago

    I remember a government saying that civil penalties were reasonable and proportionate. Do not believe a word anyone says about future charges, they all lie.

  • Member Since March 2023 - Comments: 1509

    12:02 PM, 30th April 2026, About 3 days ago

    Just to make it clear – this is a NEW BUILD and is not leashold, these are monthly charges levied to mow the gras and maintains playgrounds etc

  • Member Since April 2014 - Comments: 37

    1:26 PM, 30th April 2026, About 3 days ago

    Hi
    I’m guessing this may be a small development of houses where the play area is shared. It could be all the houses will be part of a management company which you run once the last prperty has been sold. Provided you get to take charge of the management company you (the home owners) can either self manage or employ your own managing agent.

  • Member Since October 2013 - Comments: 1650 - Articles: 3

    3:11 PM, 30th April 2026, About 3 days ago

    Reply to the comment left by Kizzie at 30/04/2026 – 10:49
    There is no progress on leasehold reform in Parliament. After all it’s rhetoric and promises before the election, Labour has capitulated to the freehold lobby… as we all knew they would.

    You need to check if the council has adopted the roads. If not, you are likely to suffer from poor build quality, potential drainage problems, etc… with no recourse to the council.

    Don’t buy ‘fleecehold’!

  • Member Since April 2026 - Comments: 1

    4:44 PM, 30th April 2026, About 3 days ago

    It seems fair enough to charge for the upkeep of communal areas, but the thing to watch out for is the right to reassess if the charge isn’t paid. I had trouble selling a four year old house because it had a repossession after 28 days non-payment clause, luckily Persimmon, the builders, extended this with a deed of variation for a very modest £150. They were reasonably quick too, but that may have been thanks to my competent and friendly solicitor. Try to get at least 3 months written into your purchase.

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