Service Charge Q&A

Please find below answers to submitted questions for EGM Agenda Item 4:

2021.05.20 Question Submitted:
(1)Clause 2 of the Service Charge budget refers to the fact that historic budget for grounds maintenance was not sufficient to deliver the requirements. Can you give more information please on who set up the requirements and what exactly the budget didn’t cover? Where can I see the breakdown for last year that was covered by the service charge?
(2)Why is Service Budget required? Is it not covered by Council? If it’s not covered, can you clarify why please.
(3)Who represent Community Interest Company?

CCMC Response:

1. Directors (in conjunction with Bellway Homes) employed an independent 3rd party landscape consultant in April 2019 (as part of the new Managing Agent procurement process) to confirm all remedial landscaping works required and to develop a detailed specification for delivery of on-going landscape management and maintenance in line with planning consent. The specification, which covers all the maintenance work required, can be found on the CCMC website: https://ccmc-ltd.uk/managing-agent/
2. Residents are obligated, as stated in their deeds, to pay an appropriate fee for upkeep of the estate in perpetuity whilst they remain the owners of their properties. The council will not take on any responsibility for the communal areas. There is also an obligation for residents, as part of planning conditions, to contribute to the upkeep of “strategic” (site-wide) estate areas. There is more information on the CCMC website: https://ccmc-ltd.uk/service-charges/
3. At present the Community Interest Company (“CIC”) is managed by PG Property Management on behalf of the land owners. All residents (across the wider Channels development) will have a chance to become members of the CIC and PG Property Management will hand over day to day running to a board of resident directors. We do not have a confirmed timescale for this transition.

2021.05.14 Question Submitted:
Would it be possible to pay the service charge in monthly instalments? I think if this would be available then you would get more people paying the service charge on time.

CCMC Response:

The TP1 (Transfers) for each property which set out how the management charges should be paid do not allow for monthly instalments per the relevant section from the TP1 below. This means the service charge must be paid in advance on (or as close as possible to) the defined dates.