Type of bank account for Service Charges

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Type of bank account for Service Charges

    Hoping someone can advise. We have a building that's been converted into 5 flats and we have set up a Ltd management company, which is run by all the flat owners. Each owner has a share in the company and we are all directors of the company. We want to setup a new bank account for collecting/holding the monthly service charges and I'd like advice on which type of account is best for this/which bank etc. There would be no profit making from this account, as the money is simply a holding place for any potential property maintenance that needs doing. I was looking at the Lloyds treasurer non-profit account, but not sure if this is the right sort of account? Ideally an account that allows online banking and small to no monthly fees.
    Thanks in advance.

    #2
    You would need to look at the specific terms of the account. For Barclays, the savings element would need to be a Client Money Account.

    Although the wording of condition 4.1 (in https://www.lloydsbank.com/assets-bu...118_V3_Web.pdf )isn't entirely clear, I think that you are disqualified from the account that you mention because you are incorporated.

    Comment


      #3
      HSBC bank offer a non-profit account for small groups - communities :

      https://www.business.hsbc.co.uk/1/2/...s-and-colleges

      Comment


        #4
        There is much more than the type of account -- It needs to be held in Trust. Is a legal requirement under Section 42

        You need to get the words "trust" and "client" into the name of the account if at all possible, as well as the name of the property, e.g:

        Biggins Court Company Limited Client Trust Account.

        also get a formal letter from the bank to say that they recognise that status of the account:
        -- that they funds held in that account are recognised as trust money held under section 42.

        You should also keep service charge funds separate from any ground rents.

        Comment


          #5
          Lloyds advertise a "designated client account" which is more appropriate than their treasurer's account. There should be no transaction charges,

          Comment

          Latest Activity

          Collapse

          Working...
          X