Block Management of Leasehold Properties
For blocks of flats and houses with communal areas where residents’ Management Companies have been formed.
Block Management of Leasehold Properties
This page explains the service provided by Property Management North East in respect of leasehold premises, and some freehold premises where there are common areas (or, in some cases, developments which are a mixture of both). It is designed mainly for blocks of flats which are controlled by the members of the residents’ Limited Management Company.
Management Companies are created usually by the developer/builder as a means of placing the responsibility upon the owners of the properties as a single body, rather than individuals. Most of these Companies are Limited and must comply with Company Law. The leasehold agreement will require all purchasers to become members (only 1 member per property). Each Company must have a minimum of 2 directors, preferably more, and the Company must be sustained. If the Company is dissolved or struck off, properties can become unsaleable and considerable expense will be involved in re-instating the Company.
The membership of these Companies will pay service charges, which will normally cover:
- Maintenance of gardens/grounds/parking areas
- Outside communal lighting
- Lighting of internal communal areas
- Cleaning, décor, maintenance and repairs in internal communal areas
- Window cleaning
- Maintenance of entry gates/entry phones (where applicable)
- External decoration
- Lift maintenance (where applicable)
- Block buildings insurance
- Administration costs and management fees
- Provision of ‘sink fund’
- Accountancy fees and bank charges
Property Management North East’s Service includes
- Sending out notification, collection and administration of service charges. We recommend that fees are paid on a 10 monthly basis by standing order, we issue reminders for arrears and arrange debt collection if necessary.
- The administration of all the day to day finances of the Company, including the payment of contractors etc. The directors receive a quarterly statement and we would liaise with your accountant at the end of the financial year. All funds would be kept in a separate clients account.
- Obtaining quotes for major repairs/improvements and organising minor repairs/maintenance. On request, we would seek quotes to replace existing contractors (a maximum of 3 quotes would be obtained).
- Issuing projected figures for the following year to incorporate a ‘sink fund’ or reserves for any future maintenance/improvements.
- Dealing with block buildings insurance – this only applies if a member of staff of Property Management North East is appointed Secretary of the Company. Otherwise, due to F.S.A. Regulations, insurance would have to be handled by members of the Company.
- Attending the A.G.M. And any other meetings necessary (up to a maximum of 2 per year).
- Liaising with the directors and responding to members’ general enquiries.
- Issuing of notices where necessary, issuing notices of the AGM, dealing with sales enquiries (see Terms & Fees).
Our Fees & Terms
- Our fees will be calculated and notified to the directors in writing, awaiting their approval before we proceed. All our fees are subject to VAT. Fees will be taken on a quarterly basis and shown on the quarterly statement.
- We reserve the right to charge separately for any extra work, eg issuing forfeiture notices, notices required for improvements etc, and any legal expenses would be charged to the Company (after prior consultation). We would also charge administrative expenses on notification of arrears (at our discretion) payable by the individual, not the Company.
- We would charge vendors’ solicitors for information regarding sales/remortgages etc, but these would be charged to the individual, not the Company.
- Our contract would be for 1 year, with 3 months notice required from either party to terminate the contract.
- We are acting as agents for the residents’ Management Company, there is no relationship of employer/employee.
- Our role is to advise – the directors of the Company decide on a course of action (within the law) and we implement this.
In order to Proceed, we would need the following:-
- The statutory books of the Company, including the register of members, directors, mortgages/charges, membership certificates and application forms, deeds of covenant, leasehold agreements, memorandum and articles of association etc.
- Details of all contractors currently used, whether or not the Company is satisfied with them, the length of their contract, how often they attend, the cost and a copy of the tradesman’s current public liability insurance certificate.
- All financial records and details of the Company accountant.
- Records of the most recent safety inspections (eg, fire safety in communal areas) and lift maintenance (if applicable).
- Details of building insurance.
If you have any queries regarding Block Management please contact Property Management North East, telephone 01325 382302 or info@property-management-northeast.co.uk.