statements of account

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  • statements of account


    We've been asked to provide a "statement of account" to our leaseholder.

    We don't have a sinking fund, service charge demands are sent out as required and with supporting documents. We only ask for funds in advance if there is a large item of expenditure and it is clear what the demand relates to. Last time we did this the actual bill was lower than the demand and we repaid the overpayment. Our preference all along has been to keep things simple.

    Can we send a summary of the last 12 months expenditure (confirming all paid up, no problems) or we have to get an accountant involved? It seems so unnecessary (and expensive) as we are only a block of 3 flats (majority share the freehold) and the freehold isn't held by a company.



  • #2
    I'm guessing that what they want is a statement for that particular flat showing charges made and monies received over a period of time. You don't need an accountant for that.


    • #3
      You probably want something on these lines

      If you are the treasurer ( some has to be the authorised financial officer ) you could sign it, as being a true representation of the expenses incurred and contribution for that flat.



      • #4
        I would call that service charge accounts, rather than a statement of account.


        • #5
          Originally posted by Tulula View Post
          I would call that service charge accounts, rather than a statement of account.
          But it can still be used / modified to just show income and expenditure
          for the financial year in question, leaving off the cost per flat.

          Supplied to show a format, which impish can then write his / her own.

          The leasholder may want a more detailed account, wanting to see
          EVERY transaction, but a statement is what they asked for, which
          is not a copy of the accounts everyday transactions pages.
          Maybe he "does" want to see a sheet similar to Gateshead's, as many just look on internet and told they want
          such and such, and they just ask for it, not knowing what to expect.
          Who knows ...



          • #6
            What I'm talking about is a thing like a bank statement showing dates, amounts charged, amounts paid and a balance.


            • #7
              I agree with Tulula that a statement of that leaseholders account is most likely what they want.

              The Op could ask them, as Tulula suggests,

              " Just to be clear, do you want a simple list of amounts demanded of and paid by you, or something else? "
              Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.


              • #8
                Thanks all of you. That's really helpful. I think they are just after a list of monies due and received for that flat. I was just concerned that we needed to get some sort of official sign off.


                • #9
                  No, statements of account are just book keeping, no need for anything official.


                  • #10
                    Is this a request under S21 of the Lanlord & Tenant Act 1985 ?

                    The S21 in force (not to be confused with the version online, this confusing aspect has been discussed here numerous times !),S21 only requires an audited account if there are 4 or more leaseholders.

                    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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