New Fixed Estate Charge Collection

L&Q's exit leaves the Chobham Manor LLP (CMLLP) with the task of finding an organisation to collect the FEC on their behalf; they are not finding that easy and a number of companies have declined as the 5% charge they levy is insufficient to cover their costs. 

As at the end of March 2024 the CMLLP has not found that organisation and they are unable to place any demands for payment on residents.  They continue to seek a body to administer the charge for them.  

The CMLLP suggest that they will have this solved and new demands issued by early May.  We think this is optimistic but lets see.  We think that to collect the charge they will have to issue new Direct Debit demands from the new collecting agency which will add time to setting it up.

What should you do?

• There should be no concern about paying the charge to L&Q, as L&Q will simply not collect it.  If you have a direct debit with L&Q they should only collect a payment for the Service Charge - keep an eye on them of course.  If you choose to cancel your direct debit with L&Q (there is no realy need to do so) then remember to pay the Service Charge each month manually.   

• Be aware that the RPI increase for the Park Charge this year is a massive 13.5%.   We suggest that you start to acrue the funds each month as if you are already paying i.e. add 13.5% to your monthly payment from last year and keep that ready for when they demand it.

• Keep an eye open for a letter from the CMLLP about the new system.  You may, in the iterim, receive a letter from L&Q on behalf of the CMLLP advising you of the delay - although its unlikely they will admit to these problems. 

If you owe money on the Park Charge then be prepared for a solicitor's letter from the LLP and legal action in due course.  They are raising the priority on collections from debtors.

(Note L&Q Housing Association Tenants ceased paying the Park charge from 1 April 2023 so the confusion about the new administration does not apply to you).