Francis Butson & Associates

Estate Management

test5test18

Financial Services

SERVICE CHARGE BUDGETS: We will prepare an annual service charge forecast based on the anticipated costs for the year ahead. We will carefully estimate the expected cost of providing the essential services such as cleaning, gardening, lighting, repairs, management, security, accountancy and insurance. The service charge budget is approved by the client. Costs are carefully monitored throughout the year to ensure the best use of funds. Cyclical maintenance such as redecoration, tree pollarding etc. will also be included in the budget. It is important to include these items so that the funds are in place when the time comes to carry out the work.

RESERVE FUNDS: It is important to save up for future large items of expenditure and major overhauls, for example, roof replacement and car park resurfacing. Windows, doors and roofs etc. will all come to the end of their useful life when they will no longer be fit for purpose. Often the Lease provisions allow for a reserve/sinking fund to be built up where there is an amount put away each year through the service charge for the eventual replacement of these large items. Reserve fund analysis and careful planning this way is in the best interests of the leaseholders and is also attractive to prospective purchasers if you decide that you wish to sell your property.

ACCOUNTING: It is imperative that Leaseholders’ money is accounted for accurately and that there are records and receipts for all income and service charge expenditure. Depending on the requirements of the block or management company, Accounts or a Statement of Service Charge will be produced each year by the accountant appointed to do so. The Lease often sets out the way in which the service charges are to be accounted for and Francis Butson & Associates will undertake to comply with these provisions. All records, invoices, bank statements are kept at our office and are available for inspection by leaseholders by appointment. We use industry approved software for our record keeping and accounts.

SERVICE CHARGE RECOVERY: We have an effective accounts department dedicated to collecting arrears of service charge and ground rent. The covenants in the lease set out the contractual obligations in which the leaseholders should pay their service charges. Francis Butson & Associates undertakes to collect the service charges in accordance with those terms and on the dates specified. On the rare occasion when we are unable to collect the debt we use the services of a professional property debt collection agency. There is no cost to the management company. The fees charged by them are added to the debt and therefore payable by the offending leaseholder.

GROUND RENT COLLECTION: Where applicable, Ground Rent is collected from the Leaseholders either on behalf of the Management Company, Freeholder or third party Landlord. They are collected in the prescribed manner under current legislation and in accordance with the provisions contained in the Lease.