From: "tim....." 
Newsgroups: uk.finance uk.legal
Subject: Re: Service Charge on Block of Flats
Date: Wed, 20 Jun 2007 09:47:47 +0100
Bytes: 3845


"Troy Steadman"  wrote in message 
news:1182317407.862106.236990@k79g2000hse.googlegroups.com...
On 19 Jun, 12:48, "tim....."  wrote:
> "Ronald Raygun"  wrote in message
>
> news:fLOdi.7906$p8.2061@text.news.blueyonder.co.uk...
>
> > tim..... wrote:
>
> >> wrote in message
> >>news:1182241077.998579.87310@q75g2000hsh.googlegroups.com...
>
> >>> There are rights to obtain further information concerning service
> >>> charges. A good guide (at the risk of being accused of self-publicity)
> >>> can be found in:
>
> >> But as you say, irrespective of what the lease says, the OP does
> >> have the statutory right to be supplied with a copy of the audited
> >> accounts.
>
> > It is conceivable, though, that the freeholder is not required even to
> > produce audited accounts, never mind make them available to his vassals.
>
> I understood that this was not the case.  BICBW
>
> > I think if the freehold is owned by a limited company, then the company
> > can be required by its shareholders to produce audited accounts, and
> > often it is the case that the leaseholders *are* the shareholders, and
> > it is by this route that I presume the statutory right you mention
> > arises.
>
> > Of course the expense of having an audit carried out might end up
> > leading to a huge increase in the service charge, and if I were one
> > of the leaseholders, I'd be very angry indeed if any of the other
> > leaseholders were to exercise this right.
>
> Every block that I have belonged to has had their accounts
> audited at about 300 pounds.  Divided by, say, ten flats a
> small amount for peace (piece?) of mind.
>
> In any case, under the new HIP rules, without these audited
> accounts a flat could be un-sellable.
>
> >  The small-company exemption
> > from audit saves a lot of money.
>
> I don't think this applies in this case.  The accounts are not
> being prepared for other shareholders, but to satisfy a legal
> requirement to justify fess charged to people who are, in
> effect, the customer.
>
> tim

tim with the greatest respect that is utter rubbish. No small block I
have ever come across needed or obtained audited figures if it could
possibly avoid them - it simply isn't cost effective. A normal set of
accounts prepared by a qualified person who is independant will
suffice, and will comfortably exceed £300 on its own :)

-------------------------

I have admitted I missunderstood the need for 'audited'
but *every* block that I have owned has had accounts
prepared by an independent accountant, and the cost
has been around 300 pounds.

tim