Bright Willis

Block Property Management

imageWhat is Block Management?

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 their block. These covenants usually relate to the payment of Ground Rent, Service Charges and building insurance.

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 unsellable. Property management therefore is clearly essential.

BLOCK MANAGEMENT SERVICES INCLUDE

  • The collection of ground rents and service charges
  • The preparation of service charge budgets and financial forecasts
  • Arrangement of all flat management functions
  • imageArranging contractors, negotiate contracts and issue relevant payments
  • To organise building insurance and handle claims
  • Regular property visits
  • Liaise with residents
  • Holding AGMs
  • Preparation of year end accounts
  • Preparing reports for freeholders
  • Arranging maintenance quotations for major repairs
  • Putting in place emergency contacts
  • Updates on current legislation’s – Landlord & Tenant Act
  • Regular property inspections
  • 24hr emergency line

COLLECTION OF THE SERVICES AND THE GROUND RENTS

Organising the collection of service charges in accordance with the terms of the lease (i.e. quarterly/half yearly/annually) including the issuing of demands for the collection of service charges and where appropriate, ground rents.

image Also dealing with arrears including involvement with the mortgages or management company’s solicitors, if appropriate.

PREPARING SERVICE CHARGES BUDGETS

In accordance with the lease, the service charge is carefully budgeted, usually at the beginning of the block’s financial year. A breakdown of the service charge budget should be sent to each flat owner for comments and observations prior to the service charge demand being sent out. The service charge will then be billed in accordance with the terms of the lease.

APPOINTING CONTRACTORS AND ARRANGING PAYMENTS

All our contractors whom have complied with our stringent reference procedures and maintain and hold appropriate insurances and other qualifications will be appointed to carry out works and contracts. Their work is constantly checked so that standards do not drop. Due to the number of blocks we manage, we are able to negotiate very competitive prices with contractors.

ACCOUNTING AND PREPARATION OF THE END OF YEAR ACCOUNTS

imageRegular financial statements are available showing the present position of the company’s finances. Accounts will be sent to an accountant so that the end of year accounts are prepared. A copy of the accounts are sent to each flat owner.

BUILDINGS INSURANCE

Competitive quotations are obtained for building insurance cover. The level of cover offered by the policy is carefully scrutinised to ensure that cover is sufficient. The building sum insured is also checked for acurancy. A certificate of insurance is available to each flat owner on request.

REGULAR PROPERTY INSPECTIONS

As soon as we are engaged as managing agents, we will inspect the property and assess any repairs or maintenance that is required. Recommendations will also be made as to any periodically occurring maintenance such as redecoration and to other regular services such as cleaners and gardeners the number of inspections each year is to be agreed. Usually we would wish to carry out monthly inspections although for smaller developments this may be uneconomical. For the larger sites we operate a “surgery” system whereby a representative from Bright Willis will attend on a set date and time each month so that they are available to all residents to address any queries whilst on site.

MAJOR REPAIRS AND MAINTENANCE

For major repairs and maintenance, at least three quotations are sought from independent contractors. A detailed specification of the works will be drawn up as a basis for the quotation. We follow the strict regulations imposed by Section 20 Landlord and Tenant Act 1985 as amended by the Commonhold and Leasehold Reform Act 2002 which sets out the consultation procedures which must be followed.

LIAISON WITH RESIDENTS AND OTHER PARTIES

Respond to enquires raised by individual lessees and to ensure that all necessary information is circulated to lessees, as required. Dealing with Solicitor’s conveyance enquiries to the sale and purchase of apartments/flats with the property block.

REGULAR CONTACT WITH FREEHOLDERS

Regular meetings with the directors will be held to discuss and advise in respect of any ongoing matters and to any changes in legislation, planned maintenance and other matters affecting the property.

EMERGENCY CONTACT

As well as dealing with routine enquries we have a 24 hour answering service together with an after hours telephone number in the case of an emergency.

FEES

We charge a fixed fee per unit which is payable every quarter. If we are asked to carry out additional one off tasks, such things as the supervision of major building work or arranging to meet insurance assessors, there will be an extra charge and this will be invoiced separately.

AGM’s

Annual General Meetings and Extraordinary General Meetings are held in accordance with Company House requirements. Minutes will be taken and directors and secretaries are elected. A copy of the minutes is distributed to all flat owners.

PROVISION OF A RESERVE FUND

A reserve fund which is usually set up in order to build up funds to pay for major works, usually to a block of flats such as replacing a roof or door entry system. This means that when major work is carried out, the bill will not be as large because of the money collected over a period of time from different leaseholders. Your lease will say if you have to pay towards this fund. If you do, the amount you have to pay will be shown in your yearly service charge statement.

At the end of each Service Charge year any surplus funds will be put into this reserve fund account. Any shortfall will be recovered from this account, or from the flat owner as Excess Service Charge.

CURRENT LEGISLATION – LANDLORD AND TENANT ACTS

We are well versed with all the current legislation in the governing and management of leasehold property. We always comply with and will advise our clients of their rights and legal obligations under the terms of their lease.