FAQs | Frequently Asked Questions

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What are dormant company accounts?

Dormant company accounts are simplified accounts that can be sumitted to companies house to fulfil the legal obligation to file annual accounts. In simplist form dormant company accounts for a non trading company comprise the balance sheet (statement of assets and li...

When can a company be dormant?

A company can be dormant when it does not trade. In a property context definition not trading is that ground rent is not received, no assets are bought or sold and that no interest is received to the company as principle. As the SMSU operates your management company ...

What is a deed of covenant?

A deed of covenant is essentially a promise. It is a promise by the buyer of a lease to abide by the covenants stated in the lease and if usually entered into as a condition of any sale in the lease post the original first sale.

What is a register of directors/members and shareholders?

This is a simply a register of who is control of the company i.e. the directors and should reflect the records held at Companies House as any appointments or resignations have to be referred to them by completing them a 288A form.

What is the reserve fund for?

Reserve funds are built towards future cyclical expenditure (such as the replacement of the lift of the re-covering of a roof and/or general block redecoration). Collecting a reserve fund helps spread costs as the due date approaches. Only if the lease allows should ...

What is an ownership register?

An ownership register is the legal register of who currently owns the lease at a certain point in time. A lease will always set out the original parties when it was first created, thereafter the lease is (assigned) to each subsequent purchaser. It is the registration...

Where and how do you keep service charge monies? How are they administered and who receives any interest?

All client funds are held in interest-bearing client accounts administered in accordance with Royal Institution of Chartered Surveyors (RICS) Client Money Protection Scheme. All interest accrues to the leaseholders. All accounts are managed according to the RICS Code...

How do I go about making alterations to my property?

Contact the SMSU Legal Services team who will advise further. Factors to be taken into account is what is permitted by the lease, are the proposed alterations structural, what possible harm could be caused if they were not carried out effectively.

What is a Licence to Assign?

A Licence to Assign is in simplist for permission to sell the property in question. Licence to assign is granted by the Freeholder to the current Leaseholder. Where a lease requires a Licence to assign before the lease can be sold it would be a breach of lease to sel...

What means do you use to collect service charge?

Our in-house Legal Services team monitor the collection of service charges. Arrears reach the litigation stage within the quarter in which they are billed.