Situation:
A 1970’s development of apartments in the centre of Beverley which were sold freehold, a most unusual situation in respect of the ownership of apartments in communal blocks. The owners got together when they realised after some years that there was no proper mechanism for ensuring that all owners contributed to the maintenance of the common parts of the building.
In this instance, a binding covenant was agreed whereby each flat owner had a legal obligation to contribute to the maintenance and repair of the building through service charges administered by their own flat management company. Through prudent management and an understanding that it is important for owners to create savings for major repairs, they have been able to re-roof parts of the building when necessary, improve landscaping and continue to update the buildings where necessary in order to comply with ever evolving legislation, whilst maintaining a good reserve.
At the direction of owners, RPMS have supervised maintenance, repair and improvements, creating a desirable development to live in where apartments command a premium price when offered for sale on the open market.
Key points: Good communications and understanding between residents and managing agent. Agreed and well thought out budgets and maintenance planning. Support from RPMS to assist owners understanding of the differences between freehold and leasehold ownership and how service charge is managed.