FINANCIAL

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Registered in England

Company number 02612305

BACKGROUND

Originally, the freehold of the Sandown Lodge estate and its 81 flats was held by the developer. Reserved (ground) rent was payable to the freeholder. Leases were for, at most, 125 years. Residents had minimal say over running costs or longer term structural maintenance. 

In 1991, the then residents came together to purchase the freehold. Sandown Lodge Estate (Epsom) Limited was formed for this purpose. The company now owns the freehold, and its shares are owned in turn by all the flats on the estate. After taking over the freehold, the company amended all the leases on the estate. Among the changes, lessee voting rights were strengthened, reserved rents  were assigned wholly to the benefit of the service charge account, and lease terms were extended to 999 years.

In law, once it assigned all its  income from reserved rents, the company became a non-trading entity. Since then it has filed statutory accounts at Companies House which simply show the freehold asset at cost. (See below.)

Under the terms of the lease, the Company also has a separate duty to account to lessees  for service charge monies collected and expended on their behalf. In the past, these accounts were dealt with separately. These days, both the statutory accounts for Companies House and the financial reports for lessees are combined into a single document for ease of reference. (See below.)

DIRECTORS

Since 1991 the directors of Sandown Lodge Estate (Epsom) Limited have been drawn from among the lessees on the estate. While faces inevitably change over time, the goal of nurturing the long term health and well-being of the estate remains a constant. The directors are responsible for filing the statutory accounts and service charge reports, and work unpaid on behalf of all the lessees on the estate.

SERVICE CHARGE FUND

Around 45% of each year's service charge income is needed to meet  running costs and routine repairs. The balance goes towards funding necessary major works, such as roof repairs or replacement of lifts, that arise over a longer timescale.

These latter require careful long-range budgeting in order to ensure sufficient reserves are built up to meet costs as they fall due. To this end the company maintains a record of spending patterns going back to 1994 and projecting forwards beyond  2050. A brief summary of planned major works over the next eight years , extracted from the longer term data, is included in the annual financial reports.

FINANCIAL REPORTS

Downloadable in PDF form, free of charge,  from Companies House

Go to:   

https://find-and-update.company-information.service.gov.uk/company/02612305

Alternatively, if you would prefer a printed copy, please get in touch with any Director,

or email richard.grace@sandownlodge.org.uk