•Service Charge expenditure
The level of service charge expenditure at Castle
Court, and presumably at other flats throughout the UK, substantially
depends on the reasonable cost of fulfilling the obligations in
the leases and complying with statutory obligations. This is turn depends on a number of factors such as
the age and condition of the property, materials used in construction,
the relevant lease obligations etc.
The directors of Castle Court Freehold Limited consider
that the total service charge expenditure at Castle Court, including
PPM projects, reasonably reflects the lease obligations, particularly
the cost of complying with the landlord’s obligations to maintain,
repair & redecorate the building.
It is then for market forces to determine whether
individual flats at Castle Court are attractive to individual prospective
purchasers, including buy-to-let investors. It is not Castle Court
Freehold Limited's responsibility to produce a service charge budget
or PPM schedule that would be attractive or acceptable to every
individual purchaser or every buy-to-let investor who considers
buying a flat at Castle Court.
Not all properties in the UK are affordable to every
individual purchaser looking for a property. Not every leasehold
property in the UK would be a viable buy-to-let investment.
• Current service charge
expenditure at Castle Court
01 April 2018 - 31 March 2019 total budgeted service charge expenditure = £509,207
• Service Charge (including PPM) invoices
and payment options
The leases stipulate that full payment of service
charges is due by 1st April and 1st October. However, Castle Court
Freehold Limited offers most leaseholders the option of paying for
ongoing items of service charge expenditure via monthly standing order instalments.
This offer is subject to leaseholders:
1. Paying their ground rent in full by 01 April and 01 October due dates
2. Not carrying forward
any arrears from any previous service charge period
3. Ensuring that during years where large PPM projects are scheduled, large PPM project contributions are paid in full by 01 April / 01 October due date.
To be fair to the responsible majority of leaseholders
who pay their service charges on time and expect the Landlord to
be in funds to progress large repairs promptly and comply with the
various lease obligations to provide uninterrupted services etc,
Castle Court Freehold Limited is committed to effective legal action
against the minority of leaseholders who do not comply with their
lease obligations to pay their service charges by the due dates.
• Service Charge expenditure relating to Asbestos & Fire Safety
The statutory asbestos survey of communal areas and plant areas undertaken in July 2004 in accordance with The Control of Asbestos at Work Regulations 2002, and the statutory Fire Risk Assessment undertaken in June 2006 in anticipation of the provisions of The Regulatory Reform (Fire Safety) Order 2005 coming into effect October 2006 required minor work which was undertaken soon after the asbestos survey and the Fire Risk Assessment and within the normal service charge expenditure at the time.
An updated Fire Risk Assessment was undertaken in February 2009 in accordance with the provisions of The Regulatory Reform (Fire Safety) Order 2005, as this legislation has been implemented since the previous Fire Risk Assessment.
The February 2009 Fire Risk Assessment required a fire alarm system to be installed in the communal areas and this was completed during the 2009-2010 service charge year. Minor works required to riser cupboard doors were completed during the 2012-2013 service charge year.
If subsequent surveys / risk assessments &/or additional legislation require additional work in respect of asbestos &/or fire safety then the necessary work will be costed and budgeted for and the necessary expenditure will be disclosed to all leaseholders in the normal way - depending on the cost & timescale this would be via annual service charge budget or annual service charge accounts or an updated PPM schedule. If necessary, statutory section 20 consultation would be undertaken with all leaseholders.