Good news for Chartcombe residents.
The lease term for flats is 125 years from the 1st of October 1998. By arrangement with the Company Solicitor every member of Chartcombe Properties Limited is entitled on demand to be granted an extension of the term of their leases to 999 years with a peppercorn ground rent.
There is a very modest cost for this service.
We are pleased to inform you that the Service Charge for the year ending 30th September 2020 will be unchanged at £2,775 p.a. It is also good to note that there is no ground rent paid here at Chartcombe.
EXPENDITURE 18/19 £213,753 – 19/20 £213,500
We have since received the end of provisional statement, which of course will be ratified by the Auditors and submitted at the A.G.M. next March.
EXPENDITURE 18/19 £213,732 – 19/20 £209,619
This means that there is a likely balance on last years budget of about £4,000.
There are no new major works in preparation for this financial year, although the final payment for the refurbishment of the lists is included. Maintenance will be carried out. Maintenance is ongoing with many smaller works being done in the next budget year. None of which is urgent at this point of time.
The finances of the Chartcombe Properties Ltd are in good shape with a healthy amount in our reserve fund amounting to £95,615.
The Company also owns flat 1 which is valued at £260,000, the rental of which is £11,000 pa and is now producing a profit of approx. £8,000 p.a. (less Corporation tax). This is the first year of profit.
Board of Directors
The following letter has been posted to all Shareholders
You will note from the attached Budget Forecast that expenditure for the period 1st October 2018 to 30th September 2019 has increased to £213,732. The service charge contributions are based upon this budget. To cover the increase it is necessary to increase the service charge by 4% (four percent). I remind you that there has been no increase in the service charge for the last two years and the year before was only increased by 1/5% (one and one half percent). This equates to an average of 1.37% per year.
Our Managing Agents advise that Chartcombe’s service charge remains extremely cheap. blocks of similar size charge over £5,000 per year.
The good news is that our capital investment programme is now complete. Section 20 projects over the last four years included;
- £60, 6091 Lighting update
- £42,000 Replace carpets
- £37.984 Service Lifts
- £29,160 Replace entry phones
- Total £169,735
Other work included, painting the Atrium, painting the blocks and security update, including new CCTV. This work cost over £13,000. In future years we would only expect to have to increase the service charge by the PCI, that will be the Prevailing Conditions Increase (inflation), adjusted to meet Chartcombe’s unique requirements. Our cash reserves remain sound and I remind you we own flat 1, a very valuable asset.
I remind you that Chartcombe is a service company, like the local council, we are not a manufacturing or trading company, therefore we cannot make a profit. The only way to generate money is by careful expenditure. This is achieved through the combined efforts of our Managing Agents, your Directors and on site management of our own staff, who monitor every penny of expenditure to ensure that, by best business practice, shareholders receive good value for money.
Roy Godfrey – Chairman
Chartcombe Properties Limited.
The website for Chartcombe is now online!