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Annual Accounts
Our accounts department deal with the day-to-day collection of service charges and administration of contractors' invoices. We also have an independent accountant who visits our offices several times a week. He reviews the preparation, completion and presentation of all financial matters relating to the properties and uses a specialist accounting package to provide the detailed information required by leaseholders to ensure that they are fully informed on how their service charges are administered. He also prepares Annual Accounts and Corporation Tax and Trust Tax Returns for submission to Companies House.
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Block Insurance Policies
Minster Property Management are appointed representatives of a local insurance broker. In accordance with FSA rules, all insurance is placed through our approved brokers. The brokers are required to thoroughly research the market and obtain three competitive quotes for our consideration and approval. Owners are strongly advised to have their own contents insurance policy. We reserve the right to make an administration charge for handling insurance claims.
It is essential that we are notified immediately whenever a property becomes empty and owners should be aware that most insurers will not pay for any claim arising under Malicious Damage, Escape of Water, Damage to Water Installations, Theft, of the Perils Insured and Glass of the Extensions to the Policy if any property is left without an occupant for more than 30 consecutive days unless:
1. Either (a) the gas electricity oil and water supplies are turned off and during the months of October to March (inclusive) the water system (including the central heating system) is drained or (b) during the months of April to September (inclusive) the gas electricity oil and water supplies are turned off and during the months of October to March (inclusive) the central heating system is put into effective operation for at least a minimum of 4 hours in every 24 hours with those services not necessary for its operation turned off/drained.
2. The property is visited and inspected internally and externally at least once during each week by you or on your behalf.
3. The premises are cleared of any combustible materials or rubbish.
4. All doors and windows are secured.
It is also essential that we are notified as soon as possible when a property is let. Non-disclosure of this information may invalidate the insurance.
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Budget Preparation
We prepare a detailed estimated service charge budget for each individual property. If it is a new property, the estimate will be based on our experience of managing similar properties. After the first year of management, when actual costs of running the property are available, the budget will be revised in consultation with owners. It should be remembered that some services (for example a lift or entry system – if appropriate) will be covered under warranty for the first year and that charges for these items will commence when the warranty expires.
Towards the end of the first year, the annual budget based on historic costs incurred during the year will be prepared about a month before the property's financial year end (the year end date will be specified in your Lease). The budget will be circulated to property owners inviting constructive comments within 21 days and may then be adjusted prior to invoicing. It should be remembered that this remains an estimate and any unforeseen deficits may necessitate an excess levy. Owners will be advised of any deficit as soon as it is known. Funds not spent in any category will remain in the bank account for the property and will either be set off against future charges or be placed in reserves.
We always endeavour as good management practice to maintain reserve funds for the development to ensure that finance is available for long term maintenance and major items of expenditure. We believe this is preferable to making periodic one off levies. In our budgets, we show a "Reserve Section" separate from the Service Charge to enable owners to differentiate between the day-to-day running costs and the reserve funds. After the first financial year, we also prepare a five year budget forecast which is normally presented at the Annual General Meeting. This forecast includes both regular services and long term planned maintenance. It enables owners to plan ahead for future expenditure. The forecast is reviewed each year and forms the basis of the annual budget.
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Contractor Instructions
Minster Property Management have a policy of appointing contractors for cleaning of the common areas, window cleaning, gardening, maintenance, etc who are known to us as being reliable, reasonably priced and who provide work to a satisfactory standard. If leaseholders have contractors known to them who they would like to use, we are always prepared to appoint such a contractor after obtaining references and evidence of their public liability insurance.
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Emergency Contact Numbers
| Fire |
Fire Brigade |
999 |
| Gass Escape |
National Gas Emergency Service |
0800 111 999
|
| Flooding and Sewage |
Independent Drains |
01202 569825 or
07917 130706 or
0800 0131 301 |
| Anti-social disturbance |
Police |
999 |
| Noise disturbance |
Council Environment Health Dept. |
|
| Plumbing |
Aqua Care |
01202 591100 |
| Electrical |
PMD Electrics |
01202 717220 or
07966 450189 |
| Locks |
Bob Baker Locksmiths |
07704 655027 or
01929 550263 |
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Ground Rent collection
Where appropriate, we collect Ground Rent on behalf of the Landlord. Ground Rent Demand Notices are issued to comply with the Commonhold and Leasehold Reform Act 2002, Section 166.
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Health and Safety
We monitor health and safety considerations at all our properties and ensure that they comply with current legislation. We commission appropriate reports and arrange for any necessary remedial action to be put in hand.
Control of Asbestos Regulations
asbestos reports
The Regulatory Reform (Fire Safety) Order 2005
fire safety risk assessments, emergency lighting tests, fire alarm tests
HSC & HSE Codes and Guidelines for the control and prevention of Legionellosis
water tank assessments
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Inspection Visits
Our Estates Manager makes regular inspection visits, supervises large contracts and looks after the general maintenance of our properties. This enables us to respond quickly and effectively to requests from leaseholders. He has an extensive knowledge of all our managed developments and his involvement ensures that contractors are fully briefed with terms of reference. Jobs are inspected and monitored.
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Lease Covenant Enforcement
Our management services include enforcement of the covenants contained in the Lease. We endeavour to do this initially in a reasonable manner as many new owners are unaware of their obligations under the Lease. However, if necessary we will take more stringent measures to ensure that covenants are complied with, especially if illegal or dangerous acts are involved. Parking is normally the most divisive issue between property owners. It is essential that residents abide by the terms of the lease and park only in the authorised space. Where requested we will take action against persistent abusers. The correct disposal of refuse is also an important issue, especially with the need to undertake recycling in accordance with Government regulations. We regularly remind residents of the recommendations and if necessary take enforcement action.
Owners who let their properties on shorthold tenancies are responsible for the actions of their tenants. Any breaches by their tenants will result in enforcement action against the owner. To avoid conflict we advise owners to vet their tenants carefully and ensure that they are aware of the terms of the lease. Most leases and/or insurers require letting to be to a professional (working) family unit and not individual persons. We advise owners to check with us to ensure that their prospective tenant is acceptable under the terms of the insurance policy, which provides cover for the whole building, including their own property. We request that all lettings are registered with us for security, fire safety and insurance purposes, for which we charge a separate fee as this is not covered under the management charges. It is essential that we are able to advise the insurers as soon as possible when a property is let in order that insurance cover can be maintained.
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Lease Interpretation
The covenants, regulations and basis of service charges are set out in the Lease or Transfer. This is the contract between the owner and the ground landlord or management company. Not all leases are the same, but in general property owners are responsible for "the demise" which is the flat or house. This normally includes all internal walls, ceilings and floors, windows, glass and their frames plus all services that exclusively serve "the demise". The landlord or management company are responsible for repairs to the common areas and common services, the structural fabric of the building, including roofs, main walls, gutters, etc and problems emanating from the building. The cost of these repairs is financed by the service charges levied on property owners.
Before purchase of the property, their legal adviser will have advised the owner of their rights and obligations according to the Lease. Owners need to be aware of the terms of the Lease and we recommend they keep a copy for reference. We occasionally find property owners are in breach of their lease terms because they have not read or understood their obligations. For example, most leases prohibit the keeping of pets in an individual property, limit car parking, impose noise limits and prohibit items being left in the common areas due to health and safety regulations.
Service Charges are raised against property owners to pay for the cost of repair and maintenance of the fabric of the building and external common parts as outlined above. They do not cover matters arising from within an individual property. A purchaser should be informed by their legal adviser of the percentage of the overall charge that they will pay. Service charges are normally due twice a year. On new developments, the service charge for the first charge period will be paid on completion of the purchase.
By owning a property within the development and signing the Lease or Transfer, owners have agreed to pay the service charges. Non-payment puts an owner in breach of the lease covenants. This may result in suspension of some services for the development and enforcement action will be taken against non-payers.
When a development is new, the developer or ground landlord is generally a director of the Management Company and, depending on the terms of the Memorandum and Articles of Association of the company, individual property owners may also become directors.Â
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Leaseholder Credit Control
Non-payers of service charges are pursued with consequent risk of monetary and legal penalties. Minster Property Management's policy is to issue a warning letter. If this is ignored, a second letter will be issued which includes an administration charge. A third letter will be issued with a further administration charge, (where appropriate) interest added to outstanding balances and a threat of recourse to legal action. If payment is not forthcoming and the property is mortgaged, we may advise the mortgage lender that their security is at risk. Any legal costs incurred will be charged against the owner. The owner is made aware that non-payment can also result in the landlord pursuing forfeiture of the Lease, which means that the owner could lose the property.
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Legal Enquiries relating to Purchase and Sale
When a flat or house is being sold, we are requested by solicitors to provide details on all matters relating to the property. We endeavour to deal with these requests as quickly as possible in order that a sale is not delayed. The majority of this information is submitted to them in the form of an extensive leasehold questionnaire, formulated locally by the Bournemouth & District Law Society, who also recommend the charge to be made (currently £100 + VAT). Increasingly we are also now receiving numerous further enquiries both from solicitors and estate agents. On 1st June 2007, the Government may be introducing the Home Information Pack and we are awaiting details relating to leasehold properties.
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Limited Company Administration
Where there is a management company we receive a separate fee for acting as Company Secretary, administering company books, completing Companies House Annual Returns, submitting forms to appoint, resign or change the address details of directors, preparing annual reports, running an Annual General Meeting, serving notices and producing minutes.
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Maintenance Planning
Our Contracts Manager keeps a detailed log on each property and at the start of each year identifies the maintenance issues which will need to be addressed for individual properties. Where necessary, tender documents are prepared and quotations invited. All properties are maintained according to the Lease and good management practice.
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Resident Mediation
A development of flats or houses is a communal living environment and we always do our best to encourage good relations among residents. We regularly draw their attention to the section in the lease stating that no noise should be audible outside their individual property between certain times, usually between 11 pm and 8 am. When they are proposing to have work carried out which is likely to cause disturbance, we recommend that they advise neighbours in advance and arrange for the work to be done at convenient times.
When we are advised during working hours that a property is being affected by a defect or negligence from another property, we will make contact with the owner, tenant or letting agent and put all parties in touch with each other. Outside working hours and if the matter is urgent, we recommend contact direct with the property resident to advise them of the problem. If we are advised of a defect which appears to come from an individual property, we reserve the right to pass on the name and contact details of the owners.
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Specialist Advice for Developers, Freeholders and Leaseholders
Developers
Minster Property Management has gained considerable knowledge about the best and worst features found in flat and residential estate development sites of both physical structures and legal issues.
Physical Structures - early input into the planning of the scheme can increase the development's marketability, design out areas of potential conflict and reduce service charge costs.
Legal issues - advice on the most appropriate and effective terms to be included in any lease or transfer will safeguard the investment and prevent future management problems.
The practice welcomes the opportunity to provide advice which will make the management of the development straightforward, practical and enforceable. Consultation may avoid some of the pitfalls experienced in poorly planned developments.
Freeholders
The rights of both landlords and tenants are now strictly governed by the Landlord and Tenant Act 1985 as amended by the Leasehold Reform, Housing and Urban Development Act 1993. For example, the Landlord must undertake consultation with the tenants on items of major works or where entering into a long term contract. Failure to follow the correct procedure can have dire financial consequences for Landlords. They may be prevented from collecting service charges to recover costs expended. Landlords also need to ensure that appropriate ground rent demand and service charge notices are served. Failure to serve these may result in the inability to collect ground rent and service charges. Minster Property Management provide clear authoritative advice and undertake all appropriate consultation as part of their management duties.
Leaseholders
Minster Property Management can provide advice to leaseholders on various issues including Service Charges, Appointing a Manager, Section 20 Consultations, Extending Leases and Purchase of the Freehold, Setting Up and Running recognised Residents' Associations, as well as Applications to the Leasehold Valuation Tribunal. The practice is often approached by dissatisfied tenants unhappy with the service provided either by their direct landlord or their appointed managing agents. Minster Property Management pride themselves on providing unbiased straightforward practical advice to resolve personality or management issues.
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Data Protection
Minster Property Management Limited are registered under the Data Protection Act and under the terms of that registration, personal data obtained from clients may be used for the following purposes - accounts and records, property management and crime prevention and detection and the apprehension and prosecution of offenders. We will provide contact details of one flat owner to another in certain circumstances, such as when communication is required between flats or houses concerning water ingress. Both parties will be advised before this is carried out. Details of occupancy of flats or houses are provided to insurers. Details of arrears of service charge or ground rent on individual flats or houses are provided to directors of management companies.
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