At Alexandre Boyes, we believe block management should go beyond day-to-day operations. One way we add value for our clients is by offering the option, where appropriate, to place reserve or sinking funds into interest-bearing accounts.
We work with one trusted banking partner and, if clients are holding funds of a level that warrants it, we will follow their instructions to place these monies in notice or deposit accounts. The interest earned is credited back to the development, helping to reduce the financial burden on leaseholders when major works or long-term projects arise.
Real Benefits for Our Clients
Some recent examples show the advantages of this approach:
- Case Study A: Earned over £5,000 in interest on funds set aside for major works.
- Case Study B: Generated around £2,000 in interest on monies held for roof repairs.
- Other notice accounts: Consistently deliver meaningful returns when funds are held for longer periods.
It is worth noting that, where more than £500 in interest is earned per annum, this may be subject to tax.
Fully Compliant, Secure, and Transparent
As a RICS-regulated firm, we operate strictly in line with the RICS Client Money Protection Scheme and our published Client Money Handling Policy. This ensures:
- All client funds are segregated and protected.
- Interest earned is allocated directly back to the relevant development.
- Full transparency is maintained through regular financial reporting.
A True Point of Difference
Not all managing agents offer this facility. Many leave client funds in non-interest-bearing accounts. At Alexandre Boyes, we see ourselves as custodians of our clients’ money and are proactive in making sure that, where appropriate and when instructed, funds are placed to work harder on behalf of leaseholders.
