Fixed Estate Charge

Statement on the Queen Elizabeth Olympic Park Fixed Estate Charge

Following on from the success of the London 2012 Olympic and Paralympic Games, London Legacy Development Corporation was given a once in a lifetime opportunity to develop a new metropolitan heart for east London where people choose to live, work and play.  

The Fixed Estate Charge was developed to contribute towards the cost of maintaining Queen Elizabeth Olympic Park’s parklands and its facilities, as an Estate for the enjoyment of all those living on, working in or visiting the Park. It is a fixed charge, dependent on the nature of the use, index linked and paid to London Legacy Development Corporation, which may be utilised to upkeep and maintain the Park and its Venues, and applies to all types of occupier on Queen Elizabeth Olympic Park estate (Queen Elizabeth Olympic Park estate is outlined in blue on the attached plan and may be subject to variation from time to time).  

Fixed Estate Charge Q&A

What is the Fixed Estate Charge and who pays it? 
The Fixed Estate Charge contributes to the development and on-going maintenance costs of Queen Elizabeth Olympic Park. The charge applies to commercial and residential occupiers on the Park, as outlined by the LLDC boundary. 

How has the charge been calculated? 
The Fixed Estate Charge is a contribution and not directly linked to the cost of estate services. The structure of the charge will vary according to the contractual arrangements in place across different zones of the Park. The value of the charge will vary in accordance with permitted use for each property (ie commercial, community or residential). The Fixed Estate Charge rates are set out in the legal paperwork linked to each property. In order to understand the basis of each charge you will need to contact the organisation that invoices you, e.g. Chobham Manor LLP. 

What is the Fixed Estate Charge spent on? 
The Fixed Estate Charge contributes towards the management of the parklands, footpaths, cycle ways, bridges and waterways that make up Queen Elizabeth Olympic Park.

  • Maintenance of hard and soft landscaping and planting in the Park
  • Provision and maintenance of safety equipment 
  • Provision and maintenance of lights, street furniture and other amenities 
  • Provision of security and CCTV 
  • Provision of pest control services 

What is the difference between the Fixed Estate Charge and Council Tax? 
In 2016, the Mayor of London delegated responsibility to LLDC for the maintenance and upkeep of the Park to a standard that would secure its regeneration and development. The Fixed Estate Charge is the levy charged by the London Legacy Development Corporation to pay for that maintenance.  Council Tax on the other hand is a tax charged by local authorities in Britain, based on the estimated value of a property and the number of people living in it. The Council Tax is collected directly by the local authority and is used to fund the cost of services like refuse collection, highway maintenance and schools.

Why are residents and non-residents treated the same in terms of discounts for venues even though residents pay the FEC?
The Fixed Estate Charge is not linked to any residential discount schemes. The Mayor directed LLDC to make the charge in recognition of our obligation to maintain the Park and Venues to an appropriate standard. 

What are the official borders of the Park for the FEC? 
Please refer to the map showing the Fixed Estate Charge boundaries on the Park at http://www.queenelizabetholympicpark.co.uk/-/media/lldc/appendix-b-fixed-estate-plan.ashx?la=en

Why aren’t East Village and Glasshouse Gardens residents in the zone, yet Chobham Manor residents are?
East Village & Glasshouse Gardens fall outside of the Park boundary and LLDC ownership. See the link to the boundary map at http://www.queenelizabetholympicpark.co.uk/-/media/lldc/appendix-b-fixed-estate-plan.ashx?la=en

If Chobham Manor residents pay the FEC towards the upkeep and maintenance of the Park why are standards completely different between Chobham Manor and the rest of the Park?
While the Fixed Estate Charge is payable by all businesses and residents on the Park certain areas are managed differently. Each of the new neighbourhoods, including Chobham Manor, are managed by the developer who takes responsibility for grass cutting, litter picking etc. The FEC payments go towards the cost of maintaining the other areas of the Park.

How much would residents have to pay if they were interested in buying the freehold of the property?     
LLDC does not wish or intend to dispose of the freehold. However, residents wishing to buy the freehold should seek independent legal advice. 

Where can I find the Fixed Estate Charge shown in your Annual Report and Accounts?
Fixed Estate Charge income is shown in the Financing and Investment Income in Note 7 of the 2016/17 Annual Report and Accounts. It is also referenced in the Annual Governance Statement.

Below is a link to our audited accounts that are available online for the 2016/17 financial year.

http://www.queenelizabetholympicpark.co.uk/our-story/the-legacy-corporation/good-governance/accounts

The FEC is not a service charge but a fixed payment.  The FEC is shown in the accounts as income and it is not referable or linked to the cost of the estate services.

There is more information on the Fixed Estate Charge on the GLA website here.

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