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    #16
    s21 does not help you at all. You should ask to inspect the accounting records. Only if you are refused access to them should you issue a s21 notice so that you can then issue a s22 notice to inspect the supporting documents. The bank statements will give you the information you seek.

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      #17
      If you are a member of a management company check the Articles, sometimes they give you the right to inspect the accounting records. If they do you can bypass the s22 route and make the request to inspect the records in accordance with the Articles instead.

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        #18
        Originally posted by paulamis View Post
        Are you sure you want the 'service', you pay hundreds of pounds for an accountant to take the agents figures and add them up again.

        It does little to help you work out what is going on.
        Exactly.. My FH charges for a accountant..but the lease makes no mention of it..it was bought up in my first LVT claim but with confusing results...as mentioned above it does little to help the LH..my account listing from my FH has supposedly been audited its full of errors, amounts appear then disappear...its a right bloody mess.
        Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

        I do not accept any liability to you in relation to the advice given.

        It is always recommended you seek further advice from a solicitor or legal expert.

        Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

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          #19
          The accountancy service adds no value at all, errors are missed and even the FTT does not rely on an accountants report. It is much better to inspect the accounting records yourself.

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            #20
            I would put it this way, "garbage in - certified garbage out".

            Is there a reserve/sinking fund involved to muddy the waters here?

            If there is this can be effectively an interest free loan to the FH to cover their costs, if some works were needed that needed all of the reserve they would have to pay it back, But there is no rule to say the reserve must be fully depleted before the MA calls on you for more money, because in his professional judgement he believes X thousand should be held ...

            While all this is galling, you have not actually lost anything, you have exchanged your money for a share of the reserve fund assets, those assets could just happen to include a big IOU from the FH.

            You might think, is not my money held in trust, they cannot take my money and spend it on the FH (or other LH) costs, but if you check carefully, the reserve is in trust as a whole, a MA cannot take money from one property and spend it on another, but within a property they can do whatever they like.

            Obviously this is like a ponzi scheme, it will not work without funds coming in at the bottom, ah, the sinking fund!




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              #21
              paulamis - an IOU from a FH can be worthless in which case the LH would have lost his contributions. I have come across mysterious loans going out at the beginning of a year and repaid before the year end without any mention at all in an accountants report.

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                #22
                There is no sinking fund, the FH/MA spent it when they acquired the freehold.

                I am thinking is there any legal process that can force the FH to actually pay money to the service charge fund, probably not.

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                  #23
                  The FH collects all SC contributions including his own. If he does not pay he will have insufficient funds and he will have difficulty collecting arrears.

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                    #24
                    Originally posted by mesne lord View Post
                    There is no sinking fund, the FH/MA spent it when they acquired the freehold.

                    I am thinking is there any legal process that can force the FH to actually pay money to the service charge fund, probably not.
                    Are you saying that there was a sinking fund and the FH/MA spent all of it as soon as the FH acquired the freehold and employed the MA?

                    What did they spend it on?
                    All spending needs to comply with the terms of the lease and should be properly supported with appropriate invoices.


                    I completely agree with what others have said though, certification by accountants is a complete waste of leaseholders money.
                    The current MA at my block includes a charge of £780 each year for 'accountancy', including certification, when no certification of any sort is required by the lease and it takes me little more than 30 minutes each year to confirm whether all items on the service charge account match the amounts on the invoices, are allowable according to the terms of the lease, and are split in the correct proportions (once I have managed to get copies of the invoices).

                    Even allowing for the fact that the accountants have to look at the amounts received from each leaseholders, they are getting an extremely good hourly rate (1.5 hours work in total I.M.O. - and that allows for a 15 minute paid coffee break!).


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