Service Charge Demand - 29th September 2019.
Reference: Tribunals Order: CHI/00HG/LVM/2019/0009 dated 5th September 2019.
A Service Charge Demand was issued dated 29th September 2019. This demand was made up as follows:
£400.00 - Interim Service Charge Demand (as per the 2019/2020 Budget).
£255.48 - Managing Agents Fees period 22 Jul - 04 Sept 2019 (in arrears demand) (as per the Judges orders which can be found at paragraph 9 of the above reference).
£255.48 - Managing Agents Fees period 05 Sep - 09 Dec 2019 (on account demand) (as per the Judges orders which can be found at paragraph 9 of the above reference).
NOTES:
1. The court at paragraph 9 of the above reference, actually made an incorrect calculation as they have stated £217.58 per lease, which is £19.800.00 divided by 91 and it should have been divided by 93 leases. Please note the Court figures never show VAT if applicable in their orders. Therefore, £19,800.00 divided by 93 = £212.90 & Vat (£42.58) = £255.48.
2. Due to the property holding absolutely no funds, the court ordered on the 22nd July 2019 that an interim service charge demand should be raised to cover the buildings insurance and any emergency / urgent works required. Therefore, an interim service charge demand was issued on 23rd July 2019 for the sum of £350.00 and this was an additional demand to any other yearly ones that are usually issued. Presently, out of the monies raised by this additional demand of £350.00 there is a surplus of £8,500.00 remaining on account and this will be held for the time being in reserve.
3. As per the reference paragraph 5, how any historic service charge demands will be dealt with, whether paid or not by any particular leaseholder will be determined at the final hearing, which is scheduled to be convened towards the end of November 2019.
4. As everyone is aware, the building and the past management of it has been somewhat non-existent and presently to resolve the many, many issues presented, is not going to be a quick fix nor an inexpensive one and will probably see an Court appointed manager being put in place for a period of two to three years.
5. The managing agents fees as determined by the Courts is presently quite high and this is due to the my appointment being an "Interlocutory" order (Emergency Interim), and should my appointment become Substantive at the final hearing, the fees will drop considerably.
6. I appreciate and also very mindful that the current situation is seeing an increased level of financial pressure being placed on the leaseholders, but I am confident over the forthcoming years, if not sooner, everything will balance itself out financially and the hard work resolving the many issues at CXA would have been well worthwhile.
Donald Gerrard
Donald Ian Gerrard
FREEHOLD MANAGEMENT SERVICES LTD
