Planning for the future
Long term maintenance plans, reserve funds, sinking funds are all terms used to describe effective longer term financial planning for your development.
At MLM, we believe in good estate management practice which calls for a long term plan to be agreed with the client and the leaseholders at the blocks we manage. This promotes transparency and debate amongst the leaseholders of the levels of funds to be put away annually for longer term expensive maintenance planning. Items such as roof replacement, interior and exterior repairs and redecoration need small amounts of annual funding so that there are no large surprises for leaseholders when these sums are needed, often resulting in lengthy delays whilst funds are sought.
At MLM we have a long term model calculator for leaseholders to see the yearly impact on the amount collected. This helps to set a measured and realistic target based on leaseholders propensity to save funds every year. A plan is costed for clients at the outset of every new instruction and is reviewed annually with the budget. All funds are ring fenced to ensure that they are not mixed with the day to day service charge and are kept in a dedicated section 42 trust fund bank account.
Having a coherent long term plan provides allows leaseholders to know exactly when they can expect big ticket item such as internal redecorations to be done and can plan for the inevitable disruption these works bring. Moreover, those purchasing into a well run, well funded block are more likely to purchase in those circumstances than in a block where no reserves are put aside annually.
If you would like more information about how we can arrange a long term plan for your block, speak to Michael Jacobs on 2028 492 9850