Why do I have to pay an estate charge and Council Tax?
Your estate charge pays for the services provided by FGML, to those common parts of the development which have not been adopted by the Council, that benefit your development. This includes ourside lighting, maintenance of any common areas, maintenance of any roads, etc. These services are laid out in your title. This type of scenario has become more prevalent over the last 10 to 20 years and indeed is commonplace in a lot of newly built housing sites within Grimsby/Cleethorpes and outlying villages.
In contrast, Council Tax pays for the services provided by the Council to the wider community, including refuse collections, social services, schools and the emergency services.
Why pay FGML?
There is a contractual obligation, called a covenant, in each Land Transfer on the estate which obligates payment by each property owner to FGML for its costs in carrying out the specified works of repair, maintenance and replacement.
What if I don't pay, what happens?
If a resident does not pay then a debt arises which the Company can pursue through the courts (although this would always be the last resort). It also means a deficit arises on that property which will become an issue on any future sale. More importantly it means that funds are not made available for maintenance to be carried out in an efficient manner or to a high standard, which is of benefit to all residents. If the company does not have funds the estate will soon deteriorate which may affect a resident’s quality of life and potentially the value of their property. It is in every resident’s own interests to support FGML.
There is no other alternative if FGML becomes insolvent.
Who decides what is done now and the standards?
The board agreed a specification for maintenance based on samples and advice received, on the basis of a schedule of rates against set standards such as the frequency of grass cutting. This has been taken into account during a recent tendering process, described further below.
Why are some parts not maintained?
The mix between estate areas and privately owned areas can be confusing, in some minor instances, which has historically led to some residents being unaware of which areas are their responsibility to maintain. We are now confident that the managed boundaries have now been correctly identified.
Are FGML funds safe?
Yes. Reserves are kept by FGML in its bank. Estate charges collected by Scott’s Property LLP are equally kept safe as they are deposited in a Client’s Account, the operation of which is regulated by their governing body.
Does FGML have accounts for each financial year?
Yes. We have accounts that are examined on an annual basis. Moving forward, this will be undertaken by a local firm of accountants called Forrester Boyd.
Can I join the board?
Their is a vacancy for a resident. If you are interested, please refer to the Chair’s covering letter and express your interest in writing to our Managing Agent via e-mail – freshneygreen@scotts-property.co.uk.
Estate management charges
FGM’s accounting year starts on April 1st each year. The charge is a property’s share of the costs for carrying out all of the services and maintenance.