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.
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.
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;
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.
Yours sincerely,
Roy Godfrey – Chairman
Chartcombe Properties Limited.
We have made significant investments in Chartcombe this year, new carpets have been fitted throughout block 1 to 42 and the atrium has been painted.
Section 20 notices have been posted regarding the replacement of entry phones and entry fobs , the Lifts in both blocks are to be refurbished. Shareholders will be aware that the Board made a decision to carry out these major works over the next two financial years. We intend to borrow some money from our cash reserves and repay it when the only demands will be for routine maintenance.
Our cash reserves remain sound and we own Flat 1, last valued at £275,000
Chartcombe Properties Ltd. 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 we can generate money is by careful control of our expenditure.
In the last four years we managed to save or underspend £30,000 per year. When expenditure returns to normal we would expect to replace the money taken from reserves by the combined efforts of our Directors and Management Team ensuring that planned maintenance is carried out with best business practice and value for money.
Roy Godfrey. Chairman. Chartcombe Properties Ltd.
The Directors are pleased to announce that the service charge for 2017/2018 has been frozen again. There will be no increase in the service charge for next year, it remains at £2669 ( average per flat ).
The Board is pleased to announce, that following the preparation of our budget forecast for 2016 / 17, it was agreed that an increase in the annual service charge would not be necessary.
The service charge will remain the same as last year, £2,669 per annum. ( average per flat ).
We still have very strong reserves and our annual expenditure is very well managed, an increase in the service charge will not be needed.
Roy Godfrey Chairman
The website for Chartcombe is now online!