Barratt Homes - David Wilson Homes - Fake Freehold = Fleecehold - BBC Inside Out - 20/2/19
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- เผยแพร่เมื่อ 28 ส.ค. 2024
- BBC Inside Out meets the home owners who are paying maintenance fees on top of their council tax, but they could have avoided it.
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#DavidWilson #DavidWilsonHomes #LeaseholdScandal #FleeeceholdScandal #Leasehold #Fleecehold #Freehold #Homes #Property #Housing
We lived on a Wain homes estate. They charged £100 per year to maintain the grounds. We were told there would be flower gardens and the grass areas would be cut once a month. Not true, nothing maintained and they threatened court action if we didn’t pay. In the end we decided to keep the money for grounds maintainance and let them take us to court. They never did because they hadn’t maintained the grounds. Get everyone on the estate to fight them together.
Well done, can’t keep their side of the deal, they wouldn’t get it into a Courtroom.
@Dog I’m sure you could challenge it in court if you wanted to, as any breach of contract penalties must be proportionate to the breach of contract to make it justifiable. A judge could rule that the contract agreement hasn’t been meet so the punishment can’t be upheld or justified. A decent solicitor would happily look at the case on a no win, no fee basis. You can’t legally take ownership of a house as a maintenance company, the bank owns the house until the mortgage is paid in full.
@Dog Has it ever happened, taking possession of a home without serving notice to the bank or home owner? Would surely be case law on this if it has happened before. I would imagine the public backlash against these rogue developers would tarnish their reputation. I’m not saying it couldn’t happen or hasn’t happened but just seems wrong and disproportionate and possibly illegal.
@Dog That’s unbelievable, it would be like getting a parking ticket and them having the right to come on and crush your car, regardless whether it was worth thousands of pounds. This legal loophole needs to be challenged and changed.
@Dog bro I’m about to buy a house from keepmoat. Is there any way around the estate fees? It’s currently 300 per annum and they said it will go up over the years. What do I do?
My Dad always said make sure you buy a house which is yours and yours only. These estate management fees are a complete scam. The government should step in.
sadly the biggest donors to the Tory government are land developers which is why it's happening in the first place. New build scandals are happening all over the country and the government is doing nothing
One simple rule - Never buy a new home from a corporate builder. Look for homes built by small, independent local builders.
The more people do that the sooner the small builder becomes corporate..
Councils won’t take over maintenance of open spaces, but really happy to take full council tax fees.
It's often not really public open space and only benefits home owners on the estate. Why should the public pay to maintain it!
Council tax is usually far higher than it should be on a new build because of the out of date band system so that aline would cover the additional cost for the council maintaining these spaces.
This is not a new issue, we bought a house in Dursley in 2007. There was no cap or regulation for the "management fee". We were not told about this, someone visited us the day after we moved in and asked us to sign a form. My wife signed it and boom we were stuck with management fee. We ask the management company to itemise the cost and it turns we were paying for fire extinguishers and TV for the open areas for the shared apartments on the other side of the estate. We asked for these changes to be removed and it cost reduced by 30 pence per year. When we sold the property we had to get the management company's permission to sell !!!! AS I had been fight the cost for a year they forced me to clear the balance before they would approve me selling my own house. This is a con and should be illegal
Hm that looks like the same thing they have in Usa. Over there it's called HOA
You had a solicitor. If there is a management company and you are unsure about it raise a specific enquiry. Get the answers in writing before you exchange. Ask questions and then more questions. That is what you pay them for. Don't listen to the sales advisor.
Where were the buyers' solicitors? Should it not have been their job to point out all the charges, their unregulated nature and the practical lack of recourse in case of overcharging?
Not many Solicitors do conveyancing these days (theres not enough money in it) so you can end up with second rate Solicitors - or worse - conveyancers or legal executives. Some simply don't understand any of this, so can't properly advise client's on it. People should think twice before using a developer's "recommended conveyancer"
I lived in a barratt new build from 2006 - 2012.
We had to pay labyrinth properties a monthly management fee for the upkeep of the communal spaces .
For the entire 6 years we lived there we never saw any maintenance of the outside shared spaces! Every time I rang labyrinth I was fobbed off with rude staff !
When I sold the property , labyrinth wanted a load of extra money we didn’t even owe them before we could sell! BEWARE OF LABYRINTH PROPERTIES!!!
My daughter visited a new build site, and we were told the same thing that the charge would apply to all new build sites. The management charge was mentioned but the sales guy changed the subject very quickly. The charge seemed reasonable to start with. The house was lovely, but we then did some digging. The management company they mentioned have poor revues on trust pilot. Then we discovered other sites, HORNET etc and the whole saga of the fleecehold unravelled. Some mortgage suppliers will not touch it, some buyers will no touch it, we were certainly put off. Actually not David Wilson, but this was Bloor.
Don't forget about people who are selling regular homes who are caught up in sales chains which cannot possibly complete because solicitors don't want to deal with these houses.
They can just form a committee, appoint directors and sack the managing company if they’re unhappy, the committee must vote to do so and have a majority vote of the residents to carry the action.
and watch their management fees rise. They'll then realise 250 per annum wasn't so bad after all
And people won't sign up to get rid of them as they "won't be bothered". Leaving you to do the work.Just like in flat land and leasehold.
Only if the common areas etc were transferred to a management company owned by the home owners. Sometimes the common areas (and much more) are retained by the developer, or a company owners by the developer
I live in the states now this private management idea is what they call HOA fees here. Know as home owners association. But most of the time it’s a fee that covers a local swimming pool and green areas taken care of. This sounds like a over the top version of that.
The challenge in the UK is that, unlike an HOA this isn't actually run by the homeowners. Legally speaking, the homeowners have no recourse, the company can raise the fees however they like, and there is no regulation of the process.
At keats u got swiming pool
We looked at four different home builders in Beverley, and they all charge these estate management fees on new builds. I think the council is happy to let this carry on if it saves them money, but they still want the full council tax fee on top every month. As far as I can make out, these filthy pigs are inside each other's pockets... My advise to people - stop buying new homes. You are literally agreeing to being charged these fees by signing the contract.
It’s the biggest purchase you will ever make and it always astonishes me people sleep walk in to problem when they buy flats, houses etc.
it's lack of choice. I brought a leasehold new build flat in London. Cheapest one I could get in London and with the help to buy one I could afford. I knew I was still getting ripped off but my reasoning was after 5 years I would have paid down some equity on the property to I had something as opposed to rent. Help to buy was reserved for the land developers who were Tory donors and it was either that or rent which was a sure thing to go nowhere. I knew service charges could go up but I didn't think they would raise it to £4,000 a year. I'm not a structural expert, I didn't think that the flat would be falling apart within a few years of being built. They also make the purchase process very stressful where there's a ton of moving parts, delays, and deadlines. They then flood you with stacks of paperwork which you frankly don't have time to read if you want to get everything done on time. The lawyer you're paying thousands for says it's ok and they're a professional. The bank reviews the property and says it's worth that amount and they're willing to lend on it and again their professionals. I didn't think that when the bank reviewed the flat 5 years later that they would half the value of it. To blame the customer for being diddled in this engineered process where multiple "professionals" who are supposed to be acting on the customers' behalf fail the customer is insane.
David: yes, they buy with their heart and not their brains ..
😏😏😏
Factoring fees go up every year, they never end and you have no control over what they spend - you end up paying their over inflated bills. Never buy if factoring fees apply. Problem solved.
Any contract under English law is void if it was deliberately misrepresented, there is more than enough evidence that this was a policy rather than a miscommunication. Get together and seek proper legal advice.
We live in a Barrats house. We pay £250 a year. No complaints. Our estate has meetings and an association, and will press the management company if they are doing a rubish job. We are now moving, within the same estate.
I recently returned from living in europe, and I owned an apartment which was freehold (where there is no such thing has leasehold irrelevant it be a house or flat. But there was a monthly maintenance charge of approx 115 euros per month to cover, pool cleaning, landscape gardening and general repair and maintenance .
I have recently purchased a freehold John Wilson home and it was made very clear to me both vocal and written in the contract documents that I would be paying £280 per annum for the maintenance of the developments shared areas.
Although, I do agree with other posts here, that if these areas are not maintained by the company, then by law the contract has been broken and homeowners should have a case not to pay. The government also need to step-up and put a cap on the charges.
Developers should be made to pay a contribution under the s.106 Agreement that the Council then uses to adopt and maintain the open space. This is on local authorities cutting corners rather than developers. Either that, or the Council should have absolutely no involvement on new estates at all, the residents pay no or massively reduced Council Tax, but arrange the upkeep of roads, bin collections etc.
The council won’t reduce their bill lol as they still claim they need it for everything else. But agree it’s that the council won’t do it. They have not got enough money anymore so don’t want to adopt roads
I live on a David Wilson home estate #fleecehold my street was never finished to a high standard and was just left by the developer! To this day 9 years on virtually non if any maintenance has taken place as most of the money goes on administration fees! It's a complete scam! Developers and managing companies don't want to know! And the threats will come when you stop paying! Don't do it this is a warning to all home buyers! This needs to be completely banned and the local council needs to adopt! We where all lied to when purchasing and not given all the information! This is on par if not worse than the ppi scandal! Hopefully the government will intervene!!!!!! An ban this indefinitely! I was told recently by a David Wilson home director if i wanted to change the managing agent I would have to talk to the whole estate and get everyone to sign a petition not just my street! David Wilson lied and the fees are totally unreasonable! It's a complete scam/fraud. The truth is coming out and the apology is not accepted!!!!!
Chris: yes, you cand band together and take over the management (I think it has to be a percentage, say 70%??)
If you can prove that no, or little maintenance is done, then you can refuse to pay ! It will be fraudulent of them to demand money for nothing - but make SURE you have the evidence - photos are good .. send them the pics by email so that it is documented and dated ... it's dog eats dog ...
If they are not doing what you all pay them for then any contract for maintenance fees is broken null and void, you have the right in law, all get together get a solicitor for all make them aware, make a fund for you all, and sort and pay your own maintenance men .They can't sue you as it's them that's broken the said contract.
Don't ever believe that Barratt Homes are the better guys in house building. Their only interest is selling homes. They will deceive buyers using many tactics. Barratt Homes are well versed in using legal knowhow and a clever use of corporate wording. That use of wording links not just with buying but also with all dealings with the public, however it may be.
You have been warned.
Sounds like you had a run in with them. Same with Jessops. Bunch of liars.
And yet your council tax bill doesn't get reduced. The council can afford to cut your grass and hedges from that alone!
I've just been considering a DWH and they are saying the same thing now (July 2024).
Never buy a Leasehold....
Obviously new builds attract new income for councils from extra council tax, so it's not even a clever ruse.
You pay council rates in order they maintain public open spaces .
You end up paying both the Council and the Site Management Company , And on one Estate No Work maintenance was carried out on the estate and within a year it looked like Rundown and rats were seen in the storm drain and ditches
They are like Lego houses, I feel people get really conned. Quality is not there, you are better buying an old house much better quality.
Rule #1: get everything in writing, "oh I'm probably going to forget about that, can you drop me an email". Then reply to them with questions to get what they said documented for future proof if necessary. I believe you are also allowed to record any phone calls you have "for your records" (I'm not a lawyer) meaning you can phone them and ask about it, record the conversation, and play it back for them if they dispute your memory.
Bunny: Sound advice : people buy with their heart and not their brains ... 🙄🙄
All new build developers charge this now because the council won’t do it. I cant see any développer not doing it and seems it’ll be the way of the future as councils have run out of money
Can’t believe I wasted 5mins of my time to find out it’s only £250 a year 🤦🏾♂️
But I gather unregulated/uncapped and hard to guarantee or complain about quality of the work.
@@heinkle1 The biggest problem in these builds, and not just this one specifically, is if someone were to fly tip in the estate the council washes their hands and the residents of the estate have to pay for removal through the management company. If that happens many times within a year, you'll find you will pay way more than £250 as it's uncapped and goes up as problems such as these arise.
Now in London and its suburbs 2-4K a year, it's unregulated, with no transparency, therefore, a licence to print money
£250 per yr😅😅😅😅. All this for just a small cost.
Thanks for this. Was looking at DWH so will ask the question or indeed any new build estate.
Update 3/10/21
Just went to view DWH. Until I asked about management fees it didn't get mentioned. The sales rep like the video said all DWH estates have management fees.
I've never understood why people agree to buy leasehold.
Most companies have 30 year aftercare warranties including maintenance repairs dont get this.
Not Adopting = a lie, the developer decided not to apply for adoption it's nearer to an Urban Development Corporation (UDC) model, where local government agree not to adopt and the space becomes the main freeholder's responsibility to maintain as they hold the freehold, this becomes entrapment as a natural monopoly in place and time for the leasehold resident. There is virtually no legislation, only a toothless ombudsman (read; Ground Control by Anna Minton). Solution collective refusal to pay. ie 1915 Glasgow rent strikes led to 1915-1988 rent controls.
If the council won't adopt new estates does that mean you don't pay council tax? That would be fair.
Disgusting. We have similar on our shared ownership. We pay a sinking fund to pay for any communal repairs not covered by council, but also a second maintenance fee for things like parking areas. Trouble is some of the properties are rented with the rest shared ownership, but those renting seem to get lots of maintainence whereas we get none at all. Weeds been growing in the car park since we moved in and they never get looked at. Seems like we are subsidising everyone else.
So bad. We went out of our way to ensure that our new build home didn’t have any fees like this. We actually saw some house we really liked but as soon as the EA mentioned fees we just said no. It’s a real racket and I feel sorry for these people.
I wounder who owns the management companies who do the ground works.
Diane Abbott has shared in them.
Its usually the actual house builders who also own these management companies, just use a different name. Con
I can't understand who would buy a new build house, developers have such a pitiful reputation and yet they can sell these jellymould hutches off-plan faster than they can build them. We moved areas and rented a house whilst we were investigating the local housing and vowed never to buy anything 'new'. We've lived in our 1950's terrace house for 20 years and it's rock solid and hasn't needed anything outside of routine maintenance. I doubt half of the houses Barratt and their kin throw up today will be around in 70 years time.
Because where else are you going to live when the population us growing at a stupid rate?
Why didn't their solicitors do more to protect these people?
No solicitor does this... they are purely there to do the paperwork
I don't live in a new home, but our estate has a management company for communal areas. 80% of the money goes to them and 20% gets spent around the estate. Its a joke especially as the pavements, roads, green spaces are all maintained by the council.
Are you not a director of the management company by virtue of being a resident? Couldn’t you dispense of the management company altogether?
It's like a HOA almost
An expensive one
the land the house sits on would have been adopted by the local authority (highways) funding cuts , developers opting for a cheaper standard other than to an adoptable standard the site then stays private and every home owner on the site becomes responsible.
Don't buy stay at home with your mum and dad.
So here we have people who have chosen to live in low-density suburbs where:
1. Council tax is cheap because the land value is cheap.
2. The cost to the council per resident is high, because it's more public space to maintain per resident due to the low density.
Basically they want to have their cake and eat it too, it seems perfectly fair that councils would choose to stop subsidising these estates out the arse.
on top of all the other build and ownership issues, almost all of these boring boxes are built on what was once farmland. no walkable, or even a quick drive to any amenities. just awful.
A Barratts estate was built at the end of my garden and having watched the homes being built I would NEVER buy from them. The labourers they used were horrendous, and when we went for a walk around the estate we couldn't believe how poorly they had been built. Many of the people who moved in moved out fairly quickly because there was zero soundproofing between the houses, and the rooms were tiny. Our neighbours' family who bought there had to extend the house before they could move in as it was so ridiculously small.
Communal areas are sometimes retained and managed by developer owned or third party companies - rather than by companies in which home owners have a shareholding. Furthermore, the extent of what is retained, and not adopted by local authorities and statutory undertakers, has also grown. In some cases, the majority of the estate infrastructure is retained ... the estate roads, footpaths, street lighting, and service media - including sewers and sewage pumping stations etc. All these will need routine maintenance and, at some point upgrading or replacing
Also - think carefully before using a developers "recommended" conveyancer and consider using your own pre-completion snagging inspector
House-builders donate millions to the conservatives party and lobby government against regulation and reform.
After years 2000 all new complex properties need to pay management fees plus council taxes
every new build site has a factor. Legal requirement here in Scotland. I have never seen a local authority take over a new build site and maintain it. This programme is nonsense.
Look how close they are together , a fecking joke
U mean like terraced houses?
2024 & builders are still selling Fleecehold properties & people are still lapping them up.
So they've bought half a million- 1 million pound homes and they are moaning about £20 a month to keep the area looking nice
£259 a year? I pay £170 in maintenance fees in a small block of flats PER month...
Yeah this fee is for unadopted land tho that the developer still owns! It's a fee for land that everyone and anyone can use and damage not just the homeowners
I think the issue is Luke, the name of the management company is on the title deeds. The homeowners must pay whatever the management company decides without question. So today it could be £250 a year but tomorrow it could be £250 and the homeowner can’t do anything about it.
Not a wise buy then , exactly why I only buy freehold
Flats are always more because of communal cleaning and water testing. Tank cleaning etc
My house was built in the 80s and it's just about OK. Would never buy a new build because I previously owned a flat and I'm not stupid. These people have let themselves down by not doing their due diligence. Anybody who knows anything about property development knows that local councils are increasingly unwilling to take on new plots. This is why you simply do not buy new builds.
People are just to trusting these days…I don’t believe anything I’m told & I eliminate counterparty risk from everything i do !
They are basically HOA fees. Suck it up.
Surely the buyers solicitors should be making them aware of this issue before the purchase progresses too far? Then they can decide whether to proceed with the purchase, or not.
They often do tell buyers, but many buyers don't care or fully understand. Sometimes the conveyancers themselves don't care or understand. Not many good solicitors do conveyancing these days - mainly it's licences conveyancers and legal executives. You get what you pay. Conveyancing fees are peanuts - so you get monkeys.
People seem to think conveyancing fees are high but they're not, and the profit margins are tiny. If they were double they would more accurately reflect the work involved. Some buyers opt to use the developer's "recommended conveyances" More fool them.
Oh No. they trapped you
Barratt homes birmingham New street ia charging approx 900 pm. It is worth. They also quotes zero ground rent and 999 year lease.
Buy a freehold, never buy a leasehold
£900 fees or mortgage?
More lies from developers.
I live on a street with little maintenance and lots of residents, is it fair that my council tax goes to maintain these over-sized lego estates which latch on to infrastructure built to maintain my area?
No but the tax they’re paying should
Imagine being rich enough to have money to waste on a newbuild.
If I was you I wouldn't go any were near barret David Wilson homes .third rate shoddy at best fobbed of poor customer services please don't touch them with a barge poll.
i love homes
the only reason these developers get away with cons like this is because purchasers fail to do their due diligence
these scumbags can lie all they want, as long as nobody questions it
Best house I’ve ever bought…and all snagging points sorted without delay. Swansea, UK.
Hey
Can you tell me more? Like what problems did you encounter and were they quick to respond?
I’m planning to buy a Barrett but all of this is putting me off
@@thailah2392 apparently had no problems with it if he describes as "best house"
those new build are shady poor quality everywhere ,no insulation
Hidden fees
Why people buy them?
would you not just check with council re: this arrangement? 😆
Most councils want council tax paid but want to avoid new build adoptions as much as possible. This is a non story. Just more crying about new builds. All houses were new once.
No change
Dam new builds look so depressing no personality 😂🙈
Yeah, they don't stink of mold- can you imagine... how horrible 😂 jusy say you're jealous as you can't afford one...
@@addas7634 Cant afford one?
I have a lovely Cottage worth 500k with no issues at all very cosy and has character
Lovely at Christmas 😊
@@danbruno5945 for 530K you're looking at a 4 bed newbuilt, not even top level. Just because you like squeaky cottages that look and are old, doesn't mean a modern house has no personality, quite the opposite.
@@addas7634 Nah made of paper
Everybody knows older homes are made better EVERYBODY ✨️
@@danbruno5945 everyone who? Are you qualified as a structural engineer?- I can guarantee you aren't as you clearly know nothing
The dream....living the dream....what a stupid expression. No choice....you could sell ? The me me me attitude. If necessary you could just walk out and leave everything behind, maybe not financially for the best but a choice.
Never heard the expression never assume anything ?
Did your lawyer tell you about the management fees ?
If not, negligence.
Is it the same as a service charge?
Which is uncapped and affects millions of people.
Same as leasehold land which....
Or endowment mortgage which.....
What a set a drips. Acting like their whole life has been affected by paying £100 a year for grass cutting… which they signed up to! Almost every new build site has the same fees.
It's the principal. Could be 500 next year and you d be screwed
Its crazy. Some have £6000 per year in fees. Thats £500 per month. Another has £1000 per month so no one wants to buy it and they are trapped there.
All new estates have management fees, if the residents aren't happy then they can get together and appoint a new management company.
They shouldn't need to. Presumably these residents pay council tax, maintenance of public area's are what council's are paid to do by the council tax.
*No they don’t*
Our new build didn’t have any management fees and was quickly adopted by our local council.
Always someone else's fault
I build these homes (barrat/ Wilson) i let other people buy them, good luck with your choice, theres a lot worse out there eg Persimmon.👍bullshit price on all of them tbh.
All they as bad as what people are saying?
Please tell the truth me and my husband want to buy.
I sell DWH and Barratt and iv worked for so many developers and have left them because I simply cannot sell a product I do not love. I cannot fault them. If there is an issue, it gets resolved quickly and efficency. The council have to many roads and areas to look after. Management fees are the only route but they need to actually be seen to maintaining the land.
Our gardeners are out weekly and our development looks stunning. No rise costs within 5 years. But I do agree that the council tax should be slightly reduced in light of this.
Oh booho! Intelligent people should do due diligence. No sympathy.
Where is the 3rd comment gone?
ok
Clickbait.