Homeowners on a Nottingham estate have questioned rising service charge costs, asking 'where is the money even going?' People living in Sandfield Walk, Lenton, said they were also sceptical about what they're getting in return.
According to one homeowner's documents seen by Nottinghamshire Live, the annual charge has increased by almost £40 in the last three years - rising from £161 to £198. but Persimmon Homes said its 2022 service charge had increased by £4.91 when compared to the previous year.
The 2021 service charge accounts of Gateway, the company that carries out the work, shows the majority of the money is directed towards management, with additional cash used for things such as 'internal communal' and window cleaning as well as fire safety equipment and buildings insurance.
Read more: Resident fears over new Nottingham development where parking is already 'ridiculous'
Becca Jarrett, a 44-year-old analyst who bought her house two years ago, said: "I'd like to know what they actually do with that money. A bit of work on greenery and a wall, that's it. It doesn't contribute to anything as far as I can see.
"A lot is for management fees but we can't really do much about it. If it was a leasehold I would expect it but what am I actually paying for? They are charging extra but they are still not really doing anything."
The vast new development has transformed the former Cottesmore School site, off Lenton Boulevard. The school itself was knocked down several years ago, with a range of 95 three-, four- and five-bedroom homes, as well as flats, redeveloping the land. Based opposite the Marcus Garvey Centre, the plot was also previously home to the Sandfield Centre.
Other residents on the new estate spoke about the rising service charge, an extra fee for homeowners on top of their mortgage repayments. Supreeth Setty, a 33-year-old software engineer, added: "It's generally for the maintenance but I'm not sure what they do. They do charge a lot for it but what options do you have to be honest?
"It's been really difficult at the moment, it's all going on the credit card at the minute. My partner is going to have to find a second job. We definitely don't want the service charge going up."
A spokesperson for Persimmon Homes said: “We were sorry to learn of resident’s concerns. However, according to our records the service charge for 2022 has increased by £4.91 (2.5%) when compared to the previous year.
"At the beginning of the financial period, each resident receives a budget breakdown and explanatory note, detailing the purpose and specification of any expenditure. Gateway are happy to discuss any further concerns with residents.”
Eight of the properties on the estate were bought by Nottingham City Council, to be managed by its housing provider, Nottingham City Homes.
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