About the Annual Sum

Q. What is the annual sum?
A. It is a payment that must be made by the owner of each property towards the cost of maintaining open spaces in the development. It is calculated as a portion of the costs incurred by the Council for maintenance of the various areas of open space created by the developer to benefit the development at Great Denham and West Kempston and the administration of that scheme.

Q. How and when was the annual sum created?
A. The requirement to pay the annual sum is set out in the original Transfer Deed which was completed when you (or the first purchaser of the new home) purchased the property. 

This document created a binding contractual arrangement by the owner of the property to pay the annual sum. The Council has agreed to take on the administration of the scheme and the management and maintenance of the open space within the development. Your solicitor should have advised you of your responsibilities at time of purchase.

Q. Has there been a debate at a meeting of the Council about charging the annual sum?
A. Yes. There was a debate at the meeting of the Full Council on 12 July 2017 following two petitions presented to the Council expressing concerns about the charge.

The Council resolved the following:

• “Council notes the ongoing communication between the Council and the community on this matter, and thanks the parish council and local residents for their engagement with the Council. Council expresses its disappointment that many residents were unaware of their liability for this charge, which is included in the title deeds for each property and which should have been explained to them at the time they purchased their property. Council further notes that over 75% of residents have paid, or are paying the charge, and thanks those who have done so. Council undertakes to provide maximum possible transparency to residents in respect of the use of the funds raised via the charge, including accounts displaying income and expenditure. Council undertakes to continue to engage with the Town and Parish councils and residents' groups, with ward councillors and with residents directly on this matter.”

Charging and invoicing

Q. How much is the annual sum?
A. For the time being the annual sum is £120.

Q. I am already paying a regular sum to the developer, is this the same charge?
A. Probably not. Most property owners in the development are also required to pay a charge to meet the cost of maintaining the area immediately adjacent to the property. This can include shared driveways, communal parking, lawns and shrubs. You should check the request for payment from the developer or management company which should show what the payment is for.

Q. When and how will I be charged for the annual sum?
A. Invoices will be issued annually in February or March each year. Payment options will be shown on the invoice.

Q. Can I pay by instalments, and if so how much are they?
A. Yes, payment can be made by instalments by direct debit only. Normally you will have to pay in advance. Payments for the following year's charge will begin in April each year and you will pay 1/12th of the annual charge (currently £10) each month so that the full charge is paid by the time the payment is due.

Q. Is the charge increased every year?
A. The original Transfer Deed states that the sum is a proportionate part of the sums incurred in managing and maintaining the open space or £120 whichever is the greater. Until further notice, the Council will set the annual sum at £120 which is the minimum sum chargeable. The Council has not increased the charge since it first began to collect the payments.

Q. Will the costs of the annual sum vary across the development, depending on the size of the property or number of people living in it?
A. No. The annual sum is levied at the same rate for all properties. The number of people living the property does not affect the charge.

Q. I rent out my property, am I responsible for the annual sum?
A. The terms of the transfer of the property to you as the owner place a legal obligation on you to pay the annual sum. The Council cannot charge the annual sum to a tenant, but you can make your own appropriate payment arrangements with tenants or leaseholders.

Q. The property is empty; do I still have to pay?
A. Yes, the annual sum must be paid regardless of whether or not the property is occupied.

Q. Don’t I already pay for this service in my Council Tax bill?
A. No. The Council has not included any costs for managing or maintaining the open spaces in calculating the amount of Council Tax payable. 

Q. Can’t the annual sum just be added on to my Council Tax bill?
A. No. The annual sum is not part of the Council Tax charge and by law the Council must send a separate invoice.

Q. What happens if I don’t pay?
A. If you do not pay the full amount within 28 days of the payment date interest may be added at 4% above the bank rate. Ultimately, the Council may seek a County Court Judgement against you and take action to enforce payment of the amount due and the Council’s costs in enforcing payment. The amount due is registered as a local land charge and you will not be able to sell the property without paying the arrears.

Maintenance

Q. Does the Council ensure the amenity areas are in a satisfactory condition upon handover from the developer?
A. The Council will inspect all areas and ensure that they are fit for purpose before it accepts a transfer of any of them.

Q. Is the maintenance of Great Denham Country Park paid for out of the charge?
A. No. There is a separate agreement with the developers regarding maintenance of the country park; with the exception of the management and maintenance of the children's play areas within the country park which will be paid for from the annual sum payments.

Q. Is the maintenance of grass verges paid for out of the charge?
A. Grass verges will normally be classed as part of the highway and are not open spaces for the purpose of the charge. The developer will continue to be responsible for maintaining highway verges until such time as the highway may be adopted by the Council.

Selling your property

Q. If I sell the property after I pay the invoice will I be entitled to a refund?
A. No. The sum is payable by the person who owns the property on the day the annual sum becomes due. There is no reduction in the annual sum if the property is sold at a later date.

Q. Are there any other charges linked with this scheme?
A.  Yes, there is a Notice Fee and a Deed of Covenant Fee to be paid when the ownership of a property changes.

Q. What is the Notice Fee and the Deed of Covenant Fee and how much is it?
A. The notice fee is a charge that must be paid as part of transferring the title of the property to a new owner, for the time being the notice is £74.15 (no VAT payable). This fee is payable for each event ie if there is a sale and a new mortgage, the fee will be £138.

The Deed of Covenant Fee is the administration fee for considering the Deed of Covenant. The fee currently charged is £111.25 (no VAT payable).

Q. Can you supply a copy of the last three years’ maintenance charge?
A. A copy of this is sent out with the invoices for the annual sum between February and March each year. If you no longer have a copy of this letter please request an additional copy via email.

Q. Do you require an undertaking for costs?
A.  No undertaking is required. The only costs that are incurred are the annual sum (which must be paid in full by the seller prior to completion), the relevant notice fee and the fee for the Deed of Covenant. The notice fee and the fee for the Deed of Covenant are payable by bank transfer upon completion.

Q. Can you complete an LEP1 or equivalent form?
A. No, any requests for these will be rejected. Our procedure includes partially completing forms RX1 and RX3 only.

Q. I am/my client is re-mortgaging not selling, will they need to enter into a new Deed of Covenant?
A. If you or your client is re-mortgaging please contact Property.Paralegal@bedford.gov.uk who will confirm the requirements.