After you've read the letter please email [email protected] to:
Dear Bourne Estate Leaseholders Group, Thank you for your emails to us about the Better Homes work to the Bourne Estate. Please accept our apologies for the delay in responding. You have raised questions regarding service charges to leaseholders and also questions about the work itself. We have arranged our response to these two areas separately and our Leaseholder Services team have also provided information for leaseholders which is attached with this response. Service charge queries from the Bourne estate This note responds to queries raised by the leasehold group in April 2019 about the major works service charges. Payment options The group raised questions about help for the elderly or those in financial hardship. Camden has a range of payment options, which currently allow interest free periods up to five years and interest bearing loans up to 25 years along with a hardship scheme that allows leaseholders to defer payment. Interest-Free Payment periods:
All extended payment options are only available to leaseholders who occupy the property as their only or principal home. Further details are in the attached payment summary guide. Leaseholders can discuss the best option available for their circumstances with leaseholder services. If there a number of leaseholders who would like advice we can also arrange a one to one surgery to help with payment option questions, please let us know. Question 1 from group: “Does the The Social Landlords Mandatory Reductions of Service Charges (England) Directions 2014 apply to the major works? Essentially, are we entitled to the "Florrie's Law" £15,000 cap on costs because the Better Homes project has been wholly or partly funded by the government?” Camden response: The works in question are not funded by central government, which means there is no capping. Please note Camden currently receives no decent homes monies from central government. Service Charges The group has asked various questions on service charges. Question 2 from group: “We hereby request a summary of the service charges relating to part 2 (major works invoice). Once you have provided us with the document(s) we will then be entitled and may exercise our right under section 10, which allows us to be provided with access to the accounts, receipts and other documents. We will want to inspect the costs of scaffolding, fees, etc. and we would welcome receiving this sooner.” Camden response: The major works invoice is an estimate, the leases allow Camden to request on account payments in the same way you receive requests to pay your day to day service charges. Estimated invoices don’t relate to monies paid for works as they are sent before the start of the service charge year. We send you a certified summary of costs at the end of each financial year with your statement of actual expenditure for the year. The major works scheme has just started so the majority of costs will be incurred in the service charge period 01 April 2019 to 31 March 2020. You will receive the certified summary for this period in September 2020 and can request details of invoices at this point. Question 3 from group: “how is it fair that apportionment of the overall cost is based on rateable value of flats when it is feasible that a flat with a lower rateable value could be capable of having more windows replaced and therefore attracting a higher cost than one with a higher rateable value?” Camden response: Charging by rateable value is a fair and reasonable way to apportion charges for major works, with larger properties paying a higher proportion of the cost. Question 4 from group: “We are pleased to learn that leaseholders in phase 1 works who had been invoiced for works and were expected to enter into payment plans have had their invoices put on hold. Why was this decision taken? Why were leaseholders not told (unless they phoned)? If you will now contact leaseholders who will pay for the cost of letters and administration as this should not be added to our service charge bill?” Camden response: Our letter sent in March with the estimated invoices confirmed the payment arrangements and that payment of the estimated major works may be deferred (copied below). I have also attached the bills guide for you, which has several frequently asked questions. Major works payments (information sent with estimates) If your demand includes major works you will find enclosed a major works letters and bills guide explaining the various stages of a major works scheme. It will detail the stage you are at when a letter or bill is issued. Payment of the estimated sums for major works maybe deferred until the scheme goes on site. We will write to you when the scheme starts, at which point you must either make payment in full or set up an arrangement in accordance with Camden’s payment options. If we do not receive payment of the quarterly sums due from you in respect of the estimated demand for major works, we will assume that you agree and acknowledge our proposal that payment of the estimated demand for major works maybe deferred until you receive notice that the scheme is on-site. We will not take steps, provided you pay your day-to-day charges, to recover that portion of the estimated demand until such notice is served upon you. Help with payment queries: If individual leaseholders would like help or have any queries in respect of payment options and making payments. Please direct any queries to: [email protected]; Tel: 020 7974 3559. Better Homes planned work queries from the Bourne estate Question 1 from the group “CC has said it would be more costly in the long-term to only rectify the "beyond repair" windows rather replace all windows on the estate. When CC was asked what proportion were beyond repair as it classed it CC said, on record, it did not know. Please provide details of comparison and cost assessment showing the case that wholesale replacement is better value for money than repairing what seems to be an unknown number of windows in an allegedly poor state.” Many of the windows are original and date back to beginning of the 20th century, and have reached the end of their serviceable life. A ‘pepper potted’ approach to replacement i.e. replacing individual windows in isolated locations would not be a cost effective use of high level access (which is a significant proportion of costs) . Planners also want uniformity in buildings which have such high architectural importance There have been regular meetings with the TRA over the last six to seven years in response to repeated requests to have the windows replaced with fenestration of a higher standard. The TRA has been supported by Ward Members in their requests to renew windows across the estate. Question 2 from the group “If CC has unequivocally complied with its obligations of the lease, what factors have caused some windows to get to a state that they are now reasonably beyond economical repair? Please provide a copy of the maintenance schedule for the last two decades or advise where we can access it.” The first feasibility report commissioned in 2015 confirmed the dilapidated condition of the windows and other external elements. Day to day repairs have been carried out to the estate on a reactive basis over the past decade. All elements of construction have a finite life and will eventually reach the point where economic repair is no longer viable. That point has been reached Question 3 from the group “Some windows will not be changed as part of the major works. This is because they are connected to a door. Wates has advised that they will be done when you change the doors but CC has previously said it was not interested in changing the doors as part of the current major works (although it would arguably be more efficient and cost-effective) and replacing the doors might be years off. How does this affect the part 2 service charge for major works, if we are getting fewer windows than suggested?” Residents’ flat entrance doors will be replaced as part of a future FRA programme. The glazing attached to some flat entrance doors can only be replaced as part of door replacement work. This is because the windows are joined to a door frame and cannot be replaced separately. This element of work was not included in the tender for the Better Homes work that Wates are delivering and therefore would not have been part of the Section 20 notice. Question 4 from the group “The window sub-contractor changed unexpectedly and there has been a quibble between CC and Wates over costlier wood trims being used instead uPVC. How have these issues contributed to the overall cost that will affect leaseholders?” Wates’ have changed their window sub-contractor and are allowed to do so under the terms of their contract. Please be assured that the cost of the windows and the internal finishing trims will not change because of this. Question 5 from the group “When will the work on the roof be assessed and how will any alleged repairs be costed and communicated with leaseholders before work begins? Please be advised that we hereby put CC on notice to not commence any works on the roof until we have been given the opportunity to appoint an independent surveyor, should we not be satisfied with the amount and cost of work Wates claims is required.” We are currently assessing the extent of repairs required to the brickwork, the dormer window structures and other roofing works. This is part of our usual ‘validation survey’ process. It takes place to assess areas that have been estimated before scaffold being erected. The site team, including the Council’s own contract manager and clerk of works, carry out the validation survey. We assess the results of this and agree any changes that might be required to the original scope of works. If you would like to see the results of the surveys then we can arrange for you or your independent surveyor to see these. Although we are happy to share information with you, we cannot delay the programme. Question 6 from the group “Would a representative from CC be interested in meeting with the leaseholders at a future meeting?” Officers Planned Works and Leaseholder Services are happy to attend a meeting. If you can provide us with some dates then we will arrange this. We are aware that residents have raised concern about contactor resources on site. We apologise the slow progress of work when it began are taking this up with the contractor to ensure efficient and continuous delivery of the project commensurate with logistical constraints. We have written to all residents with the timeframes for completing all phases of the work. We will keep everyone updated of any changes this and provide a general update in the Summer of our overall progress. I hope the above is helpful and please contact me if you have any further questions. Yours sincerely -- Caroline [surname redacted] Team Manager (Planned Works)
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