Cheshire East Councli is being urged to look at ways to prevent developers creating so-called ‘fleeceholds’ whereby residents can be ripped off for services such as public space maintenance, writes Belinda Ryan.
Under current law and planning policy there is no requirement for new open space that is created as part of a new residential development to be transferred to the council by the developer.
That could mean open space on a new estate is handled by a management company and householders have to pay a charge for the maintenance such as grass cutting.
A report to the council’s economy and growth committee stated that, when purchasing a new build property, potential owners are advised if there is a charge to maintain the open space on the estate or parts of the estate infrastructure which is not adopted by the council.
It continues: “This is predominately on freehold properties, but leaseholders can also be charged a fee on top of their ground rent and service charge.
“The charge on freeholder properties is bound to the property through the title deeds and unlike leaseholders, who can challenge through a tribunal, there is no dispute resolution available to freeholders.”
The committee was discussing the matter as part of a notion of motion relating to leasehold reform.
Cllr Laura Crane (Ettiley Heath & Wheelock, Lab) , who proposed the motion, told the committee: “Residents move into a new-build estate, they buy their house which is freehold, they own the land it is placed on but they are tied into management fees which they have little to control over.
“They find themselves starting off perhaps paying £100 a year and 10 years down the line find themselves paying £1,000 a year and this is where the problems arise.
“You can choose how much you pay to have your lawn mowed if you choose to have somebody else do it.
“You don’t have the same say when it comes to mowing the open space outside of your home, yet you still have to pay it otherwise you risk losing your property because they will take you to court for those fees.”
The economy and growth committee voted to ask the environment and communities committee to investigate any opportunities to deter developers from creating so-called ‘fleeceholds’ where this is within the remit of Cheshire East Council.
(pic by Jonathan White, for display only)
Recent Comments