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Return of Service Charge surplus
KennyH1
Posts: 232 Forumite
If there is a surplus left from the service charge and the reserve fund is well funded and the money was returned to the owners how would it be returned / calculated?
The SC is calculated based on floor area of individual flats so would they return any surplus based on this calculation or would they just split the surplus equally?
The SC is calculated based on floor area of individual flats so would they return any surplus based on this calculation or would they just split the surplus equally?
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Comments
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Why would they return the surplus SC ?. I pay SC where I live. Each property pays 1/30th of the calculated charges & we have a healthy surplus in the reserve account as well.
Our site is what is known as 'commonhold' in which the freehold is owned by a company that in turn is owned in equal parts by each property owner (except for those who own multiple properties on the site, in which case the share is still 1/30th).
If we consider that the surplus is still to high, we simply freeze the SC for the next year and so on.Never Knowingly Understood.
Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)
3-6 month EF £0/£3600 (that's 0 days worth)0 -
The company have not been freezing the SC but putting more and more money into the reserve fund rather than either refund / reduce next years SC.0
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Who owns the freehold?. If it is a resident-owned company, then they will have an AGM which you as a resident has a right to attend (and even put yourself forward for election as a Director).
If it is a non-resident-owned company, then they are free to up the SC as they wish as it adds to their profits.Never Knowingly Understood.
Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)
3-6 month EF £0/£3600 (that's 0 days worth)0
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