Block Management / Service Charge Account Information
Our Address:
Scott Hall House
Sheepscar Street North
Leeds
LS7 3AF

Opening Times:
Monday to Friday -
9am to 5pm.
Saturday and Sunday - Closed.


Property Letting Viewing Times:
Monday to Friday -
9.30am to 4.30 pm.
Saturday and Sunday – No Viewings.

Payment on Account

Various items of maintenance and repair clearly involve the expenditure of money. Most leases provide for advance payments to be made in order to ensure that we are in funds and able to meet bills as they fall due.

Before the commencement of a new financial year, we will send you a Budget of anticipated service charge expenditure. It is important to appreciate that, this is only an estimate (often based upon experience in prior years and known items of current expenditure). We are not clairvoyant and we cannot anticipate all circumstances. We will then invoice you for advance payment on account of this Budget at least 30 days before the advance payment must be made. Please ensure that your payment reaches us by the due date.

Year End Charge

The final figure of service charge expenditure will not be known until after the end of the year and may vary (either up or down) from the Budget we have given earlier.

Between 3 and 6 months after the end of each year we will produce a "Service Charge Account" which will summarise all the expenditure incurred in relation to your property for the year in question, including our own fees.

The Service Charge Account will be forwarded to each Leaseholder together with a summary detailing advance payments and showing the balance due (if any) in respect of each individual property. Any balance due is payable upon presentation of the Service Charge Account. (Where there is a credit balance this will be carried forward to the next accounting period).

Under the provisions of the Landlord and Tenant Act 1987 any Leaseholder may, upon giving reasonable notice, visit our offices and inspect the books and records relating to the management of his or her property.

Service Charge Bank Accounts

Handley Gibson maintains client bank accounts separate from our own business bank account. These client accounts are used to contain all of the Service Charge monies relating to each individual property. All contributions from Leaseholders are paid into this account and all expenditure that is undertaken on behalf of your property is paid from this account.

Deficit Funding

From time to time there may be insufficient monies held for a particular property to meet current expenditure. This may arise for a number of reasons but usually is because unexpected items of expenditure occur, or the lease does not provide for adequate payments in advance. In such circumstances, and at our sole discretion, we may pay such expenditure from our own funds. If we do so we will make an appropriate interest charge at the rate of 4% over Clearing Bank Base Rate on any such funds so advanced.

Interest

We do not pay interest in our main client account, individual property accounts may attract interest.  If interest is credited it will be necessary to complete a Trust Tax Return in order for the service charge fund to pay the income tax at the applicable rate. The cost of this may exceed the interest.

Late Payment

Payments in respect of Service Charge Expenditure are due to be paid on the dates specified in your lease. We will invoice you at least 30 days before the payment date. It is important that payments are made promptly otherwise there simply will not be the funds to pay for necessary expenses. We must remind you that we are collecting monies due to the Service Charge Account of your property and as the Agent for the Trustees of that account, it is our duty to ensure that all contributions are collected in full and in a timely manner.

If any payments are late we will send you an overdue statement. If payment is still not received, we will send you a firm reminder, which will incur an administration fee. Some Leaseholders take objection to receiving such a communication and we regret its necessity. However a minority of Leaseholders take a somewhat casual approach to Service Charges and make payment when they feel like it. This is clearly unfair on the vast majority of other Leaseholders who do pay on the due dates. We retain the right to add interest at 4% over Bank of England Base rate or such rate as may be allowed by the Courts on any sums that are more than 14 days overdue.

If we receive no response to our reminder we will have no alternative but to place the debt with our solicitors for collection and seek to recover not only the outstanding sums but also interest and legal costs. Failure to pay Service Charge Accounts could lead to an action for forfeiture of your lease after we have obtained a certificate from the Court or the Leasehold Valuation Tribunal that the Service Charge is reasonable. If You are Going to Have Difficulties Making a Payment on Time, Please Tell Us Promptly. It may be possible to work out a sensible payment regime. However if you do not communicate with us we will pass the papers to our solicitors and you will then become liable for legal costs as well as the amount outstanding.

Accounts – Jane Waterton – jane@handleygibson.co.uk

Chartered Surveyors · Property Management Specialists · Valuers · Auctioneers