Covenants / restrictions
The typical response to solicitor’s enquiries set out below covers most issues.
Dear (Solicitor)
I give below the answers to your questions and to some that you may not have asked but which may be of interest since they have been asked in the past in similar circumstances.
The first thing that I should point out is that the Summerley Private Estate Residents’ Association (SPERA) is neither the estate owner nor a managing agent, it is simply a residents’ association whose main function is maintaining the roads and common areas (hereafter abbreviated to “Roads”).
This estate was built around 1928. We understand that the original development company was later acquired by LE Walwin & Partners Ltd (LEWP) who now acts as owner of the Roads. Their address is 44b Summerley Lane, Felpham, West Sussex PO22 7HX and telephone number 01243 583888.
Each house is subject to various covenants, one of which is to contribute to the cost of Road maintenance. SPERA was formed in 1994 to expedite the maintenance of the Roads. SPERA and LEWP signed an agreement giving SPERA authority to carry out maintenance works and to collect residents’ contributions to their costs. The annual membership fee is set at the AGM in April or May and covers (mainly) the cost of Road maintenance and (a small element of) Residents’ Association costs such as the cost of a summer gateman. While residents are not obliged to join SPERA they are obliged to pay maintenance costs and SPERA charges an administration fee to non-members which, in practice, makes membership the cheaper option. These arrangements and authorities have been tested in the courts and in practice 100% of residents are members of SPERA.
There are 347 houses on the estate. Each pays an equal share except that 10 of them are subdivided from the original properties and pay half of the normal fee and one, with an adjacent development plot, pays 30% more than the normal fee.
SPERA’s financial year is from 1 April to 31 March. I attach accounts for the last 3 years. [Actually they can be found on this site]
I confirm that the fees for (address of house being purchased) have been paid for all periods up to 31 March 2009.
We do not set an annual budget although the level of fees is based upon expectations of expenditure and prudent maintenance of a surplus. Fees for the forthcoming year are approved by residents at an AGM in April or May each year. Fees for the last three years (the years to 31 March 2007, 2008 and 2009) were set at £120 following a consultation with residents to see if they wished to increase fees (from the previous year’s £100) to allow enhanced services.
Roads are maintained on a rolling programme under which about £20,000 is spent every year. There is a great deal of flexibility as to timing. There are no substantial works known to be required outside this programme although, of course, we cannot foresee all requirements.
There are no specific reserves in the accounts but you may see that at 31 March in any year there was an accumulated surplus / general reserve / cash at bank balance.
We are an association not a company so we do not have Memorandum and Articles of Association. However I attach copies of our constitution and of the agreement with LE Walwin & Partners giving us authority to collect fees and to do works. [See elsewhere on this site]
There is no need to apply to join the association. It is expected that residents will join (all 347 have done so in recent years) and an invoice is delivered to each house in April or May of each year. Paying the invoice constitutes joining. In addition we deliver a welcome pack to each new resident of whom we are aware.
SPERA has no power, outside the collection of maintenance fees, to set rules for the estate. However we do publish a voluntary Code entitled “Living on the Summerley Private Estate” and I attach a copy. [See elsewhere on this site].
I hope this answers all your queries. Feel free to contact me if I can be of any further assistance.
Yours faithfully
Neil Chisman
Treasurer