DETAILED INFORMATION
Valid from 30 September 2023.
Every flat owner at Laurel Manor owns one Ordinary Share in Laurel Manor (No 1) Limited for Flats 41-68 or Laurel Manor Management (No 2) Limited for Flats 1-40 and is a Director of the relevant company. Under the terms of the original Leases the two companies are jointly responsible for the management of Laurel Manor in all respects except the arrangement of buildings insurance (at the cost of Leaseholders), which remained the responsibility of the Freeholder
However, with effect from 28 September 2009, a new company, Laurel Manor RTMC Company Limited ("RTMC"), assumed full responsibility under the Commonhold and Leasehold Reform Act 2002 for the management, including buildings insurance, of the development of the 68 flats and 68 garages known as Laurel Manor. The Directors of RTMC retain overall responsibility for the maintenance of Laurel Manor, principally through oversight of the managing agents, Harrow Management, and setting financial and legal objectives.
Proudale Limited, the Freeholder of Laurel Manor, was placed in Administration on 24 January 2012 and the Administrators subsequently offered to sell the freehold interest to the Leaseholders in accordance with the Right of First Refusal under the Landlord and Tenant Act 1987 for the sum of £573,880, a worthwhile discount to the market value.
The purchase of the freehold interest in Laurel Manor (containing 68 flats in 5 blocks) was completed on 27 January 2014 in the name of Laurel Manor Freehold Limited (LMFL) (Company Number 8706051), a Company Limited by Guarantee.
The Land Registry application was duly completed and LMFL is shown as the proprietor under Title Number SGL 155017, the property being officially described as 18-30 (even numbers) Devonshire Road, Sutton (SM2 5EJ).
The bulk of the purchase price (plus associated costs) was provided by 60 (the Participants) of the 68 Leaseholders with the balance being met by a loan from the maintenance reserves of RTMC Ltd. Each Participant has been invited to become a Member of LMFL and to take a 999 year lease with a peppercorn (£0) ground rent from 2014 at a cost in legal fees etc of around £500.
The remaining 8 Leaseholders (the non-Participants) continue to pay ground rent under their existing Leases and they (or their successors in title) can at any time apply to LMFL to take a 999 year lease (running from 2014) provided they first pay the professionally determined premium at the market rate. Please note that this will likely be at a significantly higher cost than the sums paid at the discounted purchase price for the freehold interest. Any premium received by the freehold company as a consequence will be used to repay the loan from RTMC until the loan has been repaid in full.(see above). Once a non-participating lease has been extended that leaseholder will be invited to become a member of LMFL.
NOTE: On completion of the requirements set out in paragraph 4 below the new Leaseholder will be invited to become a member of LMFL but only if the particular flat was included in the Freehold purchase.
NOTE: At the AGM held on June 12th 2017 a vote was carried to outsource the management of Laurel Manor. It was further agreed to increase the management fee from September 2017 by an amount deemed sufficient to cover the cost of external management in anticipation of a contract.
Following extensive research and consultation a contact was signed with Harrow Management Limited, Office 14, Pandora Estate, 41-45, Lind Road, Sutton. SM1 4PP to whom all correspondence should now be addressed.
,1. Service Charge to 28 September 2024. This is reviewed at the AGM (approx. June)
Budgeted Expenses Oct 23 - Sept 24
| EXPENSES | ||
| Repairs & maintenance | 20,000 | minor items + items covered by reserves |
| Contract cleaning and Basic Gardening | 11,000 | |
| Electricity and water | 2,020 | lobbies, access road, garage area, standpipe |
| Office costs | 700 | |
| Dumped Rubbish removal | 600 | Dropped since rules published |
| Management fees | 5,500 | £165 per flat plus VAT contribution. |
| Legal and Professional fees | 2,200 | Accountancy |
| Bank charges | 200 | |
| Sundries | 200 | (AR/AGM Hall hire etc) |
| Buildings insurance (to 08/10/2024) | 13,000 | |
| Refuse Bin maintenance | 2,700 | |
| Director's Insurance | 400 | |
| Site Manager Expenses | 4,400 | |
| Required contribution to repairs reserves | 28,600 | |
| Total expenditure | 91,520 | apportioned equally between the 68 flats |
| INCOME | ||
| Service charge (68 Flats) | 74,120 | Residents charges: £1090 per flat annum for 68 flats |
| Other Income (Bank Interest) | 4,000 | Interest earned |
| Contribution from reserves | 13,400 | This due to lower than required service charge. |
| TOTAL INCOME | 91,520 | |
| 2023/2024 Annual Charge to Lessee | £1090 | by 2 instalments due 29 September & 25 March. |
| or £90.83/month Standing Order by arrangement. |
| The Annual Service Charge includes the cost of buildings insurance cover. |
Details for the previous five years are:- 2022/23 £990; 2021/22 £900; 2020/21 £900; 2019/20 £750; 2018/19 £900;
Reserves
These typically cover high cost items that occur infrequently or irregularly: Roofs, Building Fabric and Cladding, internal and external decoration, carpeting, Fire Protection. Major ground work, e.g. Trees, Drives, etc.
2. Enquiries regarding Buildings Insurance cover, Deeds of Covenant, Ground Rent, Lease Extensions, Licences to Alter and Notices of Transfer should be directed to Harrow Management Ltd. Office 14, Pandora Estate, 41 - 45, Lind Road. Sutton. SM1 4PP. E-mail: info@harrowman.co.uk
3. Should you require any of the following documents for Laurel Manor Management (No 1)/(No 2) Limited (or as otherwise stated), please note our current charges:
| • Annual Reports and Accounts:(Latest available is for year to 30.9.2021) | £20 per year |
| • Latest approved AGM Minutes(June 2021) | £10 per copy |
| • Pack of last 3 years Reports/Accounts and latest approved AGM Minutes | £50 per pack |
| • Memorandum & Articles of Association of Laurel Manor Management Company or RTMC or of LMFL | £15 per copy |
| In all cases please make cheques payable to Harrow Management Ltd. |
4. Within one month of Completion Date, Harrow Management Ltd will require the following in respect of the relevant Laurel Manor Management company:-
| • Previous owner's Share Certificate, for cancellation. |
| • £30 for Share Registration/Administrative costs, cheque payable to Harrow Management Ltd. |
| • Duly executed Stock Transfer form. |
| • Notice of Assignment and (if mortgage applicable) Charge. |
| • Completed Directorship Appointment Form AP01. A Director will be the first named on the Share Certificate. |