If you are involved or have an interest in the management of the block of flats you live in then you should be aware of the latest legislation. Important changes are taking place to the financial regulations which will affect you and your fellow leaseholders and freeholders.
In order to comply with the new accounting requirements of the Commonhold and Leasehold Reform Act 2002 all interested parties should be aware of the following fundamental changes which are about to be enacted:-
· Where a freehold management limited company is in place, its service charge activities will discontinue. All of the relevant transactions should now be put through a Service Charge Statement of Account.
· Balances relating to service charge activities which were shown in the company will now be transferred except for the share capital.
· While the company itself must exist in order to appoint contractors, agents, accountants etc., the funds themselves do not belong to it but are held in trust for the property owners
· It is generally the responsibility of the property management agents to keep records and sufficient information to allow a set of accounts to be prepared.
· Accountants may however complete the format.with the Service Charge Statement of Account
It follows that there is a shift in responsibility:
· Whilst the management company directors are still responsible for the company's accounts, to be signed and filed on time, there are no transactions
· It is therefore the managing agent and the accountant who will sign the leasehold accounts
· Accountants will now report under the Landlord and Tenant Act rather than under the Companies Act.
· Please note that the legislation refers to "Landlord" and "tenant", which in this case is the management company and leaseholders.
It is also important to confirm the new arrangements in place with your bank. This will help ensure that the new trust status is properly recorded and that monies remain ring fenced and protected in the trust's name. In the case of RICS regulated firms this will also be necessary for the purpose of maintaining the protection insurance offered to clients.
Wherever possible you should ensure that your property management services are benchmarked to the quality standards set out by The Royal Institution of Chartered Surveyors (RICS) or alternatively ARMA..
Residential Freehold Block Management and Property Maintenance and Repair Services for Blocks of Flats involve many facets and generally comprise
- Leaseholder Enquiries
- Financial Control
- Expenditure
- Budgeting
- Service Charges & Ground Rent Collection
- Accounts
- Building Repairs
- Property Maintenance
- Service Contracts
- Client Reporting
- Lease Management and Compliance
- Company Secretary Duties
As a leaseholder, freehold property company or landlord, your protection and security are assured where property management agents services are benchmarked to the quality standards set out by The Royal Institution of Chartered Surveyors (RICS).
- Property Maintenance / Repairs
- Financial
- Expenditure
- Budget
- Service Charges & Ground Rent Collection
- Accounts
- Client Reporting
- Lease Management
- Property Management
- Company Secretary
Why not contact VFM Property Block Management, Chartered Surveyors, Property and Development Consultants Tel 020 8658 6824 Fax 0871 990 2366. Residential Freehold Property Services for Blocks of Flats throughout London and the South East
For further information visit their website by clicking VFM Management Agents. VFM provides block managing agent residential property services for freeholds, landlords, leaseholders and residential management companies including service charges, building maintenance and lease management
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