.png)
.png)
A company owns the freehold of a block of flats as well as one of the flats, which is let and produces income. The business maintains the communal areas, incurs expenditure and receives income via the service charge accounts
We act for a company (FR Ltd) that holds the freehold reversion of an apartment block together with one of the flats which is held as an investment. Its shareholders are all the flat owners except for three of the flats (an historical situation).
The company’s income is freehold rents flat income and mast income. The expenses relate mainly to the investment flat and a director’s fee for the management.
One of the objectives in the memorandum of association is “to manage the building and common areas which are not managed by individual lessees or publicly maintained”.
The service charge accounts (SCA) for the same block of flats receives (into a separate bank account from FR Ltd) the service charge income from the lessees.
This is used to cover the normal expenses of the communal parts of the building including repairs insurance lighting and heating...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
