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Why have I not received a full refund of my Management Fee for weeks I have not been able to occupy?
A. The Management Fee doesn't pay for a holiday, albeit many of us view it that way. It pays for a multitude of things including insurance, housekeeping, maintenance (of grounds and properties) and day-to day administration and services. A large proportion of the Management Fee goes to the Reserve Fund, which ensures the long-term quality of the property you own (think about refurbishment of bedrooms, bathrooms, kitchens, balconies and waterways for example). We must still pay for things like insurance, TV licences, the staff maintaining Langdale while it was closed and the long-term quality of the properties. The majority of our savings are in the area of Housekeeping salaries (where we received furlough payments from the government), business rates (where we have received full relief for 2020-21) and transport.
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What is the legal position with regard to refunds and are we entitled to alternative accommodation?
A. The guidance issued by the Competition and Markets Authority (CMA) relating to refunds for travel and holidays does not apply to timeshare and the Club is not legally bound to provide refunds for Management Fees paid for unavailable weeks. Following extensive coverage of the CMA guidance in the media at the end of April – and a subsequent increase in queries from owners - the Committee decided it would be prudent to seek a formal legal opinion on the matter. This confirmed the Committee’s understanding of the position.
The Club Rules (A1(c)) state that in the event of a timeshare Unit being unavailable for occupation the Management Company or Committee must use its “reasonable endeavours to inform each affected Member at the earliest opportunity and to offer an alternative Unit for the same weekly period or offer the Unit for a different weekly period”. However there is no obligation to provide alternative accommodation.
The Committee considered the matter and concluded that due to the nature and scale of the closure it was not possible to make either of the above offers to owners affected by the closure.
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Why aren’t you crediting any of the Reserve Fund contribution?
A. A substantial part of the Reserve Fund expenditure covers work that is unrelated to “wear and tear” arising from the occupation of a particular week. Some recent examples include; replacing balconies, upgrading WiFi & AV and work on the estate waterways. In addition it would be impossible to calculate the actual “wear and tear” element as it varies from year to year and from unit to unit. Owners have always contributed to the Reserve Fund on the basis that costs are pooled and shared and the Committee’s approach maintains this policy.
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What credit will I get for the current closure?
A. As with the previous closures, owners will receive credits against their Management Fees and these will represent cost savings that arise from the shutdown. Some of these are known now, but due to the open-ended nature of this lockdown there are some elements that will not be known until the estate is able to re-open. As with the closure last spring your Committee are therefore proposing to give an interim credit now with a final credit once the estate has reopened. We have agreed a formula with the Management Company which will mean that there should not be a significant delay after re-opening in identifying the savings and final credit levels, and we anticipate that the total credit will be similar to those made for the earlier closures.
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Can I get a cash refund instead of a credit?
A. Many of you have indicated that, having paid your fees in full, you would be happy to use your credit notes against next year’s Management Fee, but we are aware that others will prefer a refund and this option is available to all affected owners on request.
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What if my next invoice falls due before I receive all my credit notes?
A. Owners affected by the March – July closure should by now have received all their credit notes and those to owners affected by the November/December closure are being sent out now (January 2021). We can't yet say when all credit notes for the current closure will be sent out but we will advise owners about this once the estate has re-opened.
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How are the additional costs due to the pandemic being paid for?
A. Additional costs were incurred during both closures but there have also been some during the periods since July when the estate has been open, due to increased operational costs. We expect that all these additional costs will be met by reducing the spending from the Club Reserve Fund in 2020-21. As all members contribute to the Reserve Fund this means that all members will be meeting the additional costs. There will be no additional cost levied per unit in 2020-2021, however Management Fees for 2021-2022 may have to take account of the increased biosecurity costs related to COVID-19.
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Why have operational costs increased after re-opening as a result of COVID-19?
A.
In order to maintain social distancing we need to increase the number of buses used to transport Housekeepers – we currently spend approx. £100K p.a. on these buses
We need to provide PPE for Housekeepers, e.g. masks and gloves and adjust Housekeepers’ work patterns
We have installed and need to maintain hand sanitisers in all timeshare accommodation
Other operations (for example reception and lodge maintenance) have had to alter how they work, which is incurring extra costs.
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What action is being taken in respect of owners who have not paid their annual Management Fee due to the closures?
A. We have been in contact with the relevant owners concerning their non-payment of fees. Whilst the Committee hopes to be able to resolve the majority of cases in the coming weeks, for those who continue to withhold payment the normal procedure will apply.
This is that, initially, non-paying owners are denied any further access to any of their timeshare units and if non-payment persists then their Club membership is cancelled, in which case their weeks are forfeit. The Club will rent out or sell forfeited weeks to recover any arrears. This course of action follows the provisions of the Club Constitution.
We are aware that there are some owners who are not withholding payment but rather are unable to pay due to personal circumstances. We are dealing with these owners on an individual basis and working with them to find solutions which benefit all parties.
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If the estate is open but restrictions in my local area prevent me from using my timeshare week at Langdale, will I obtain a refund of my Management Fee?
A. LOC's policy has always been that Management Fee refunds or discounts are not available to owners who are unable to use their timeshare week due to their personal circumstances. This is because the costs of the week continue to be incurred while the estate is open and it would be unfair for them to be borne by other owners. Therefore while the Langdale timeshare estate is open and the local (at Langdale) COVID-19 Alert Level permits the estate to be open, the Management Fee is payable.
Owners who are unable to use their week for any reason are advised to consult the "Unable to Visit" section of the Owners' website for options available to them.
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Are there weeks available that could be offered to owners who have been unable to occupy their week?
A. Unfortunately not; all available weeks were sold some time ago. It may be possible to rent a week, if you wish. To see the rental availability, go to https://secure.langdale.co.uk/rental-availability.aspx
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Why did you remove the shareholder discount at the same time as expecting us to pay our Management Fee when we couldn’t use our timeshare week?
A. The shareholder discount and the Management Fee are determined by different entities. Langdale Owners PLC (LOP) determine whether or not to offer a shareholder discount, to those owners who are also shareholders. The board of LOP, perhaps understandably, felt the company could not afford to fund the shareholders discount this year, at a time when it was applying for emergency funding.
It may help to revisit the relationship between Langdale Owners’ Club (LOC) and LOP. All timeshare owners are members of the Langdale Owners’ Club and the Club is an unincorporated non-profit making club that is responsible for everything to do with the timeshare properties on the Langdale estate.
What is separate is Langdale Owners PLC, which is the company that owns the hotels, leisure and restaurant facilities and Wainwrights Inn and its shareholders are timeshare owners, indeed can only be timeshare owners. The two bodies, whilst inextricably linked, are completely separate.
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What if I don’t want my credits?
A. Some owners have very kindly offered to waive their credits as they would like them to go towards the general good of the estate. We are extremely grateful to these owners. The waived credits will be kept in a separate fund for the time being until the COVID-19 situation is resolved and we can decide how best to use them.
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Will the amount I have to pay be reduced due to the temporary VAT reduction for the hospitality industry announced by the government?
A. Unfortunately the temporary VAT reduction is not going to apply to timeshare Management Fees so we will not be able to reduce the VAT on your fees.
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How do I contact the Committee?
A. Please email [email protected] or call 015394 38001; alternatively contact Gary Dixon [email protected] or call 015394 38016; they can pass on your query to the Committee. All owner correspondence is shared with the Committee, even if the Langdale team have been able to deal with it.