Operating instructions

6 . 3 S E R V I C E C H A R G E S
ANNUAL BUDGET ESTIMATES & INVOICES
The managing agent will be responsible for the production of financial budgets for the running
costs of the building in accordance with the lease.
Service charge payments are due half yearly in advance on 1st January and 1st July, and demands
based upon the annual budget will be issued in advance by the managing agents.
The proportion applied will be as specified in the lease for each property and in accordance with
the managing agent’s scheme for the building.
ANNUAL RECONCILIATION
The service charge instalments are based upon an estimated budget plan. Consequently, each year
on completion of the Managing Agent’s audited accounts, each property owner will receive a
reconciliation statement showing any credit or debit balance on their service charge account. Any
debit balance will be immediately payable and any credit balance will be offset against future
instalments.
The managing agent is required to prepare an annual account of the maintenance expenses
(distinguishing between actual expenditure and a reserve for future expenditure) for the 12
month period ending 31
st
December.
The accounts are to be audited by an independent accountant as soon as is practicable and the
managing agent will circulate a copy of the accounts, together with the accountant’s certificate, to
each tenant.
PAYMENT OF SERVICE CHARGE
The amount invoiced must be paid in full within 14 days of written demand. If not paid within
14 days of the due date, action may be taken in accordance with the lease and interest charged.
Payment of the service charge may be made via standing order, see below for the relevant bank
account details.
Bank details will be provided by London Residential Management.