The service charge is what each leaseholder pays per year to enable all of the communal costs of the development to be met. This includes for example: the Lodge Manager’s salary, window cleaning, gardening, electricity for communal areas etc. An explanation of each element of the service charge is available should you require it.
Our management fee is an element of the service charge and relates to the services we provide within the development.
Prior to the start of each financial year, we estimate the service charge expenditure for the forthcoming year, produce a budget and always consult our Residents. We invoice and collect individual service charge shares of the budget, certify and settle all invoices properly rendered in connection with the property and maintain and make available up-to-date management accounts.
Contingency Fund (event fee)
On resale there is typically a 1% fee of the gross sale price, or open market value if subletting, payable by way of contribution to the development’s Contingency Fund. This is lease specific and can vary from development to development, as Millstream Management Services manages on behalf of a variety of developers and investors. The Contingency Fund is collected by us and held in trust on behalf of the development’s Owners to be used towards longer term repair and replacement costs for that development.
Our Owners funds are kept in protected trust-status accounts and management accounts are maintained within our company so that up-to-date financial information is always available.
Lease terms can vary from development to development, as Millstream Management Services manages on behalf of a variety of developers and investors. At some of our RTM developments Landlords collect a transfer fee on resale.
We actively manage redecoration and contingency funds to ensure they are funded to acceptable levels. Millstream Management Services continuously explores suitable investment opportunities for these funds so they earn acceptable rates of interest.