S104 Agreements - impact on home owners
Discussion
I live on a new build development where one of those management companies has been imposed upon the residents. It is not too onerous to deal with administration wise and cost wise but recently they have issued their new charging schedule for the second half of this calendar year.
Included in the costing is a charge against the estate residents for just over £1,000 for "electricity". When I approached the management company about it as it has not been included before I was told this was for the electricity used by the new pumping station built for the development. After a bit of digging via the planning office the pumping station and sewers were built by the developer under a S104 agreement that was made part of their planning obligations. A bit more investigation and I have come to the conclusion that S104 agreements are between developers and the local firm who provide fresh water and waste water management - not at all to do with the residents once they occupy the homes built. Effectively the developer builds the necessary water infrastructure which is then adopted by the local water firm and the residents pay for this via their water charges billed to them.
Could someone confirm my understanding, or otherwise, please so I can communicate correctly to the management firm and other residents.
Thanks in advance.
Included in the costing is a charge against the estate residents for just over £1,000 for "electricity". When I approached the management company about it as it has not been included before I was told this was for the electricity used by the new pumping station built for the development. After a bit of digging via the planning office the pumping station and sewers were built by the developer under a S104 agreement that was made part of their planning obligations. A bit more investigation and I have come to the conclusion that S104 agreements are between developers and the local firm who provide fresh water and waste water management - not at all to do with the residents once they occupy the homes built. Effectively the developer builds the necessary water infrastructure which is then adopted by the local water firm and the residents pay for this via their water charges billed to them.
Could someone confirm my understanding, or otherwise, please so I can communicate correctly to the management firm and other residents.
Thanks in advance.
Developer here.
If it correctly relates to a pumping station covered by a S104 which will be adopted I would normally cover the electric till adoption. Adoption of pump stations can take some time and is a pain. Often you'll also get maintenence and pump replacements involving wet wipes..
Sounds like a developer has tried to push the electric costs into the manco which then won't push them to get it adopted..
The S104 will have detailed drawings of exactly what is to be adopted and they have to make reasonable efforts to progress. There are mechanisms to force it but it isn't easy..
Hope that helps
If it correctly relates to a pumping station covered by a S104 which will be adopted I would normally cover the electric till adoption. Adoption of pump stations can take some time and is a pain. Often you'll also get maintenence and pump replacements involving wet wipes..
Sounds like a developer has tried to push the electric costs into the manco which then won't push them to get it adopted..
The S104 will have detailed drawings of exactly what is to be adopted and they have to make reasonable efforts to progress. There are mechanisms to force it but it isn't easy..
Hope that helps
Cheers Fish, much appreciated.
There is a second phase of building to be completed which has only just started and has recently been changed from 8 large houses (4 and 5 bedrooms) to now be 5 large houses and 8 smaller ones (2 and 3 bedrooms).
I assume the costs we are charged will be apportioned to include the new houses by the ManCo once they are occupied and until the pumping station is formally adopted.
I will go back to the local planning office and the ManCo to have them confirm timelines etc.
There is a second phase of building to be completed which has only just started and has recently been changed from 8 large houses (4 and 5 bedrooms) to now be 5 large houses and 8 smaller ones (2 and 3 bedrooms).
I assume the costs we are charged will be apportioned to include the new houses by the ManCo once they are occupied and until the pumping station is formally adopted.
I will go back to the local planning office and the ManCo to have them confirm timelines etc.
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