Each apartment will be subject to a 125 year lease with a ground rent of 0.1% of the property value capped at £250 pa. The ground rent will be reviewed at 5 yearly intervals by the rate of inflation (RPI). A copy lease is listed separately but your attention is drawn to the restrictions listed.
The developer’s designated solicitors (TLT) will issue a contract and full sales information pack by their ‘Collaborate Extranet’ facility which ensures immediate access to all necessary documentation.
An auditor has been appointed (Begbies Accountants) to act on behalf of the management company.
An in-house management company has been formed, South Beach Management (Bexhill) Limited, which will be responsible for the day to day management of the development. The responsibilities and estimated annual costs of management are listed separately.
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This budget has been prepared diligently and in good faith. However it is important to understand the inherent uncertainties associated in producing a service charge budget for a forthcoming year.
The budget will be based on information gathered from previous years’ budgets and accounts for similar properties, amendments to levels of service agreed quotes for the renewal of contracts and the effects of inflation. Where it is not possible to receive fixed quotes for the year we have to make informed estimates based on our knowledge of the development as well as the trends that we see across our entire portfolio.
Service charge costs can, therefore, be appreciably more or less than the levels stated in this budget and the liability for the payment of any deficit at the year-end rests with the owners under the terms of the lease. We naturally do all that we can to minimize the difference between budget figures and the actual spend but a number of external factors influence the final costs over which we have no control.
Cleaning
The cleaning of all common parts including bin stores, car park, lifts, entrance areas and corridors on a weekly basis.
Window Cleaning
Allowance has been made for cleaning of the internal and external communal windows. Individual apartment windows (both interior and exterior) are excluded but the windows have been designed as reversible to facilitate cleaning of the exteriors from inside or from the balconies so as to remove the necessity for contract cleaners. N.B. There are 6 windows on the East elevation (2 in each of Apartments 16, 24 and 32) which do not fall into this category due to fire regulations.
Security
The checking on a weekly basis of the doors to reduce the possibility of unauthorised entry.
Common area repairs
Provides for the day to day repair of items on site to include the removal of any dumped items and repairs to leaks.
Access Control System
This provision is for the costs associated with the annual maintenance contract and consumables for the door entry system.
Health and Safety Risk Assessment
An allowance has been made for the various periodic statutory and recommended health and safety assessments required to ensure that all risks are identified at the development, to include regular testing of the Mansafe equipment.
Water Tank Maintenance
This item is intended to the costs of the regular inspection, sampling, cleaning of and disinfecting of the water tank(s).
Fire Safety Systems
This is a provision for the servicing of the fire alarm equipment, dry riser maintenance and opening vent smoke extraction system.
Emergency Light maintenance
This is an allowance set aside for the bi-annual testing of the emergency lights on site and attendance by qualified contractors if necessary.
Water Pump Maintenance
These works cover the costs associated with the maintenance contract for the Water Pump System and any applicable repairs as necessary.
TV and Satellite Maintenance
This is a provision set aside for any repairs required to the communal TV/Satellite system on site.
Lift Costs
This allows for all costs relating to the lifts including the annual maintenance contract, 24/7 rescue, lift insurance, statutory lift inspections and the emergency telephone line.
Grounds Maintenance
Maintenance of landscaped areas and pruning, leaf clearance, litter picking, weed clearance, sweeping and gully clearance in communal areas.
Communal Electricity
An allowance for the payment of the electricity used for all the communal facilities on site.
Landlord Water Supply
A provision for the water supply to the communal areas on site.
Water Rates
The cost of sewage disposal into the Southern Water sewer.
Management Fees
These are the fees associated with the costs of providing comprehensive management services.
Accountancy and Audit Fees
A provision to cover the costs of preparation of accounts and external independent audit in accordance with prevailing statute\ and RICS codes of practice.
Bank Charges Net of Interest
Estimated cost for the bank charges to the service charge account net of interest received.
Insurance
An allowance for the annual block policies for buildings, terrorism and public liability cover. The cover is based on average rebuild costs plus allowances for site clearance and professional fees. Contents insurance is excluded and is the responsibility of individual owners.
Sinking Fund / Contributions to Reserves
The reserve funds have been shown as cyclical and renewable funds together with a building reserve. They are designed to cover items which are subject to normal wear and tear and which will need replacing at some time in the future.
SERVICE CHARGE WILL BE CHARGED ON A PRO RATA BASIS. WE ESTIMATE THE OVERALL ANNUAL SERVICE CHARGE TO BE £24 PER M2 OF THE FLOOR AREA OF THE APARTMENT. FOR EXAMPLE THE SERVICE CHARGE OF A 75 M2 APARTMENT WOULD BE £1800 PA.
| Floor Area (m2) | Percentage | Cost PA | |
| Unit 1 | 62 | 1.83 | £1,488 |
| Unit 2 | 53 | 1.56 | £1,272 |
| Unit 3 | 84 | 2.47 | £2,016 |
| Unit 4 | 77 | 2.27 | £1,848 |
| Unit 5 | 74 | 2.18 | £1,776 |
| Unit 6 | 102 | 3.00 | £2,296 |
| Unit 7 | 80 | 2.36 | £1,920 |
| Unit 8 | 74 | 2.18 | £1,776 |
| Unit 9 | 75 | 2.21 | £1,800 |
| Unit 10 | 80 | 2.36 | £1,920 |
| Unit 11 | 77 | 2.27 | £1,848 |
| Unit 12 | 74 | 2.18 | £1,776 |
| Unit 14 | 102 | 3.00 | £2,296 |
| Unit 15 | 72 | 2.12 | £1,728 |
| Unit 16 | 71 | 2.09 | £1,704 |
| Unit 17 | 74 | 2.18 | £1,776 |
| Unit 18 | 75 | 2.21 | £1,800 |
| Unit 19 | 80 | 2.36 | £1,920 |
| Unit 20 | 77 | 2.27 | £1,848 |
| Unit 21 | 74 | 2.18 | £1,776 |
| Unit 22 | 102 | 3.00 | £2,296 |
| Unit 23 | 72 | 2.12 | £1,728 |
| Unit 24 | 71 | 2.09 | £1,704 |
| Unit 25 | 74 | 2.18 | £1,776 |
| Unit 26 | 75 | 2.21 | £1,800 |
| Unit 27 | 80 | 2.36 | £1,920 |
| Unit 28 | 74 | 2.18 | £1,776 |
| Unit 29 | 77 | 2.27 | £1,848 |
| Unit 30 | 102 | 3.00 | £2,296 |
| Unit 31 | 72 | 2.12 | £1,728 |
| Unit 32 | 71 | 2.09 | £1,704 |
| Unit 33 | 118 | 3.47 | £2,832 |
| Unit 34 | 85 | 2.50 | £2,040 |
| Unit 35 | 74 | 2.18 | £1,776 |
| Unit 36 | 77 | 2.27 | £1,848 |
| Unit 37 | 102 | 3.00 | £2,296 |
| Unit 38 | 90 | 2.65 | £2,160 |
| Unit 39 | 101 | 2.97 | £2,424 |
| Unit 40 | 101 | 2.97 | £2,424 |
| Unit 41 | 122 | 3.59 | £2,928 |
| Unit 42 | 119 | 3.50 | £2,856 |
| Total | 3396 m2 | 100% | £80,944 |
| Lift maintenance & emergency telephone line | 2,060.00 |
| Buildings insurance | 11,052.00 |
| Electricity for lighting common parts | 5,000.00 |
| Light bulb replacement | 500.00 |
| Landlord’s Water Supply | 5,000.00 |
| Water rates | 5,000.00 |
| General caretaking and cleaning of common parts | 6,864.00 |
| Window Cleaning to common parts only | 600.00 |
| Landscaping / grounds maintenance | 1,000.00 |
| General maintenance | 13,578.00 |
| Public Liability Insurance | 2,000.00 |
| Door security system | 500.00 |
| TV/SkyQ system | 500.00 |
| Maintenance of common water supply and water quality testing | 1,000.00 |
| Maintenance of Photo Voltaic system | 1,000.00 |
| Fire safety systems maintenance | 1,600.00 |
| Pest Control | 250.00 |
| Management Fees and administration costs to include professional fees, bank charges, preparation of accounts and audit. | 17,000.00 |
Sinking Fund: |
|
| Lift – 15 year cycle | 2,000.00 |
| Internal decoration – 5 year cycle | 1,000.00 |
| Communal Carpet replacement – 10 year cycle | 2,000.00 |
| Building repair and roof fund – 20 year cycle | 2,000.00 |
| TOTAL | £81,504 |
01424 222255
mailto:info@burgessandco.co.uk
