Leaseholders hesitant to escalate complaints due to redress system
3 months ago | 2 comments
Any thoughts on new build ‘Fleecehold’?
12:02 AM, 30th April 2026, 1 month ago
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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
Tags:
developer appointed broadband new build, estate management charges new build, fleecehold charges new build estates, new build service charge playground fees, uncapped estate charges management company UK
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Member Since October 2022 - Comments: 423
4:54 PM, 30th April 2026, About 1 month ago
Ref: Mark Weeden
Agree and the freehold reversion held in the Man Co and each house has a lease and when last property sold, each resident has lease with share of the freehold interest-
So each resident has 2 roles
1 . As lessee under terms of lease
2. As shareholder bound by Man Co. Articles
Purchasers need to read the lease and take advice from properly qualified in share of freehold solicitor
before a decision.
Transfer of freehold means taking over repair obligations and poor construction without recourse to the original developer
Member Since April 2025 - Comments: 4
9:03 PM, 2nd May 2026, About 4 weeks ago
Don’t do it. I live in a fleecehold property – one of nine detached houses in a cul de sac, no play areas. Our original fee 26 years ago was £80 a year. It’s now £90 a month.
We’re currently trying to get reimbursed after being charged for gardening that hasn’t happened for months and inflated, estimated insurance costs which are three times the actual.
We have the right to appoint another agent. Doing this is complicated and lengthy. Ask yourself if you really want to take on a director’s role where you actually live.
Those with play areas are responsible for upkeep including repair costs due to vandalism – these facilities are available for use by the general public not just those living there and contributing. I would never do it again.
Member Since January 2020 - Comments: 8
9:53 PM, 4th May 2026, About 4 weeks ago
Reply to the comment left by ray selley at 30/04/2026 – 10:10
You have to be extremely careful with this. Whilst the property may be freehold, the land on the estate is leasehold. This means that you are responsible for paying the leaseholder fees, of which a significant proportion is their management fees.
As a freeholder on a leasehold site – referred to as ‘fleeceholder’ you have less rights that a traditional leaseholder in a block of flats. The majority of the potential forthcoming legislation is designed to assist traditional leaseholders, not fleeceholders. Fleeceholders have even less rights that leaseholders, and look how much leaseholders have been exploited, even with this protection. Be very careful, it could go horribly wrong for you in a few years time.
Member Since October 2022 - Comments: 423
10:06 PM, 4th May 2026, About 4 weeks ago
Ashley
Yes it’s registered as leasehold with share of freehold held in the management company known as a freehold owning RMC, and the FRMC holds the lease on the Estate probably with fixed Estate service charge, and as it’s fixed not variable then no legal rights and protection BUT as the FRMC is resident owned meaning the residents own and control the company and there is no external landlord. Each resident is their own landlord.