Fury as residents living on unfinished new build estate are told to pay £150 to finish works that should have already been completed - 'putting families under strain at Christmas'

Residents living in an unfinished new build estate gave been told to pay £150 to finish works that should have already been completing, 'putting families under strain at Christmas'.  

A property management company has demanded that residents of Elka's Rise estate in Ilkeston, Derbyshire, cough up the 'extortionate' fee by January 1 after the estate was left with flooded paths and unfinished areas by builders.

Gateway Property Management took over the estate after the incomplete new build was handed over from property developer Persimmon, which insists that any further works are the responsibility of the management firm. 

Resident Lauren Hanks, who moved onto the estate six years ago, said she was told by housebuilder Persimmon she would have to eventually pay a management fee of around £95 when it was finished.

The 32-year-old teacher described the increased fee as 'extortionate and ridiculous' and said it would put more pressure on families over Christmas. 

She also said it was especially unreasonable because the estate had been left in an unsatisfactory state by builders Persimmon.

Other new build estates in different areas of the country have had the same problems with both Persimmon and Gateway Property Management. 

Earlier this month, the Guardian reported that Gateway Property Management took over a private estate in Penrith, Cumbria, from developers Persimmon in September 2016, only to inform residents that the estate charge would be tripled to £308 a year, amounting to £17,000 from the 55 residents.

Critics have hit out at the uncapped fees imposed by management companies, arguing that the system is open to abuse with buyers often finding that expected fees spiral after a management contract is sold on.

Ms Hanks stated: 'It's a new build estate, Persimmon was the developer and we always knew that there was going to be a cost at the end of it, but it feels like this has just been dropped on us.

'It's due on the first of January, I'm holding off as long as I possibly can.' 

Ms Hanks said others are now planning to pay, as they can't risk it affecting their credit scores or mortgages.

She explained there are flooded paths and unfinished areas which the company is now trying to charge them for. She says Persimmon is refusing to act and leaving residents to pay their bill.

She added: 'There's a nature trail at the bottom end and going down to that it's all flooded and it looks horrendous. It's just a state. Persimmon is saying we have handed it over now and we have completed it to a high standard, but they haven't.

'I think we are going to get hit by more costs as Gateway is going to say it will cost more to do. We don't know if they will get in touch and say it's going to cost us this much, it needs more money.'

A spokesperson for Persimmon Homes said: 'Ensuring that the roads and public spaces on our developments are of a high standard is of utmost importance to us at Persimmon.

'Gateway Property Management are responsible for setting the management fees for our development at Elkas Rise. All works necessary in order to hand over these areas to Gateway have already been carried out by Persimmon and any further works will be the responsibility of Gateway to oversee.

'We are working with Derbyshire County Council on the adoption process of the roads and footpaths.' 

Gateway Property Management did not wish to comment.