To own a leasehold flat means that the flat owner will have entered into a long lease containing contractually binding covenants to ensure the efficient running of the block. These covenants usually relate to the payment of ground rent, service charges and building insurance, quiet enjoyment and so on. The lease is a contractually binding agreement between the Lessee and you, our client, whether you are a Resident Management Company or a Freeholder.
In addition there are regulations governing how a flat owner must behave in relation to the other occupiers and restrictions on how the property is used. A separate body is required to enforce the covenants. Without such a body, issues such as collection of service charges, maintenance of the common parts and the provision of services would go unattended and the management of the block would break down. This may render a flat unsaleable.
Likewise any estate area that requires communal maintenance will have governance in place provided through ‘Transfer of Parts’ documentation relating to each and every property that contributes to the costs. Funds require collection and governing in a similar way to Service Charges but do not fall under and Landlord and Tenant act.
Belgarum Property Management Ltd of Winchester is an independent firm of specialist managing agents well versed in the block management of flats and estate areas. We offer a most comprehensive block management service and are a member firm of ARMA the Association of Residential Managing Agents. This professional body ensures that all of their members comply with the current Landlord and Tenant Act legislation and work to strict rules of conduct. We also hold a comprehensive professional indemnity insurance policy to the value of £10 Million for your extra peace of mind.
Belgarum Property Management Ltd aims to provide a professional management service to all the parties connected to the lease or TP1 relating to property. Block management in today’s legislative climate requires full time and professional attention. Some of the areas where Belgarum Property Management Ltd can offer expertise to assist the parties to the lease include;
We are up to date with the current legislation governing the management of leasehold property including the Leasehold and Tenant Act 1987 and the Common Leasehold Reform Act 2002. We are always on hand to advise Tenants and Landlords on their statutory obligations under these Acts. Most recently we are fully accustomed to the Building Fire Safety Act of 2021 and the soon to be implemented Building Safety Act.
We also have a proficient understanding of property law, land registration and conveyancing.
If you are a Resident Management Company then we can fulfill company secretarial duties and ensure that your company complies with all of the requirements of the Companies Act. Apart from submitting the usual Companies House returns you will also need to run the share register and issue new shares as flats are assigned to new owners.
In accordance with the terms of the lease service charge expenditure is usually budgeted at the start of the financial year. This budget is then used as guidance for expenditure of the service charges raised during the financial year. Skilled budgeting is very important as it provides an accurate guide for the service charge to be made. It is vital that the service charge which is raised is adequate to meet anticipated expenditure for the year. At the end of each accounting period an adjustment may need to be made in line with expenses to ensure that costs for the following period are covered.
Major repairs and maintenance requires a longer term approach to budgeting so that adequate reserves are built up over a number of years to meet the expenditure when it arises. Reserve fund management and managing major redecorations of a cyclical or non recurrent nature are areas that require professional judgement.
Belgarum Property Management Ltd always deposit service charge funds in clearly identified, block or estate named, designated trust accounts. We also provide a comprehensive and full bookkeeping service to account for client monies.
We have a good understanding and experience of collecting outstanding service charges in a professional manner. Belgarum Property Management Ltd has its own credit control department and has strong links with independent solicitors to assist with complex cases of non payment of service charge.
We will carry out formal Health and Safety, Asbestos and Fire Risk Assessment surveys for you. We always use specialist contractors at periodic intervals to ensure statutory compliance for your protection. We can also assist you with advice on all such issues when setting up systems and reviewing procedures.
We have a comprehensive database of contractors that we use. We approve these contractors using strict criteria regarding; standards of workmanship, qualifications, levels of insurance, quality of service and price competitiveness. Our standard practice incorporates the latest Construction Design & Management (CDM) legislative requirements to protect all involved. Regular tendering of long term regular contracts takes place at periodic intervals to ensure best levels of service and value for money. We use contractors that we know from experience will respond to our calls and pull out the stops to meet our clients needs.
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