In the previous 3 years, a substantial percentage of our service charge payments have been allocated towards the long term reserve funds. The Managing Agents have taken expert advise from surveyors for the long term planning of spending these funds to benefit the development. The law requires the Landlord to consult us, the leaseholders, via a Section 20 Consultation in order to process larger long term expenses. It is imperative that we collectively monitor their spending and provide feedback where necessary where we feel that the Capital Expenditure is being spent inappropriately.
If you get a notice of Section 20 Consultation and wish to discuss this with the Association, feel free to Contact us to provide input in spending plans. One of the directors of the Association is in charge of the CapEx spend and we will be able to analyze and report on long term spending plans. Currently, the total Reserve funds held in trust with the landlord/s are in excess of £2 million.
