Expert Property Managers in Worthing

A reserve fund is like a savings account for the management company. If the lease allows for a reserve fund to be collected, and amount will be outlined in the budget each year. This money is held until an item of unbudgeted maintenance is required or when large works required under the terms of the lease are due to be carried out. The money in the reserve fund will be used to cover these costs, or towards the cost's dependant on their value.

We prepare an annual budget for each development and submit it to the client for approval at a set period during the year. In the case of existing properties, we will review the previous expenditure, the plans for the year ahead and any other necessary factors in order to set a budget to cover the anticipated expenditure. With new build sites, we will work with the developer to create a budget that encompasses the anticipated expenditure for the year(s) ahead. Once the site is complete and handed over to the residents, the process applied to existing properties would come into force. We will liaise with the client to provide a sensible and realistic budget.

The strict codes of practice that we follow ensure that we comply with all relevant legislation and industry requirements and that we hold service charge funds in separate secure trust accounts. In accordance with the Landlord and Tenant Act (CLRA 2002) and trust legislation, we open separate bank accounts for service charge monies, reserve fund monies and ground rent monies, where applicable. All bank accounts are interest-bearing with interest credited to the service charge fund and accounted for in the annual service charge accounts, which are verified independently. All accounts conform to FCA regulations, ICAEW and ARMA-Q requirements.

This will be confirmed once the full costs of the contract have been determined. In some cases, there may be a sufficient reserve/sinking fund which can cover costs of the contract, if not, an invoice will be issued to all Leaseholders for their portion of the cost on expiry of the 30-day consultation period following service of the Notice of Estimates. The covering letter sent with the Notice of Intention will show how the proposed works are to be funded. All funds must be collected before the works can commence. Depending on the type of works, it may be cost effective to have other works undertaken at the same time, particularly if scaffold is required.

Where B-hive Property Solutions are engaged as Project Manager for the works, an experienced inspector / surveyor will write the specification, complete the tender analysis and manage the project to completion.