KNOLE ROAD FLAT OWNERS - RESIDENTS' HANDBOOK Knole Road, Bexhill-on-Sea East Sussex TN40 1LW 3rd Edition - December 2017 - KRFO Ltd
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KNOLE ROAD FLAT OWNERS RESIDENTS’ HANDBOOK Knole Road, Bexhill-on-Sea East Sussex TN40 1LW 3rd Edition - December 2017
KNOLE ROAD FLAT OWNERS LTD Board of Directors Anna Selby (Chair) Philip Cottam Debbie Kenneally Christopher Sanderson Caroline Tye Company Secretary Geoff Howard Maintenance Manager David Miller Administrative Officer and Office Manager Mrs Peggy Hensher Company Office 5A Carlton Court Knole Road Bexhill-on-Sea East Sussex TN40 1LG Telephone: 01424 212940 Email: info@krfo.co.uk Website: www.krfo.co.uk Chartered Surveyor Bernard Baker RICS Hastings Lawyers Rix and Kay LLP Uckfield Accountants Gibbons Mannington & Phipps Bexhill 1
Table of Contents ~~~~~ Subject Page Knole Road Flat Owners Limited 1 Table of Contents 2 Introduction 3 Part 1: History of Knole Road 4 Part 2: Organisation and Management of the Company 5 Part 3: General Matters in Alphabetical Order 8 Part 4: Maintenance Responsibilities 18 Part 5: Grade 2 Listing Guidelines 21 Part 6: Landlords Responsibilities 22 Part 7: Code of Conduct for Contractors 24 2
INTRODUCTION Knole Road, or Marine Mansions as it was originally called, is a lovely old building. Often referred to as 'the beautiful old lady of Bexhill' she is certainly the most beautiful on the seafront as well as being one of the two most significant buildings in Bexhill. We who live in her are very lucky. Inevitably, given her age, the prevailing winds and the winter weather, she needs a great deal of care. This is reflected in the fact that most of the service charges go on maintenance and that most of the meetings of the Board of Directors are dominated by discussions of maintenance issues of one kind or another. All of us who live here need to play our part if she is to be properly looked after and hence this handbook. The handbook has two main purposes. The first is to provide helpful information for all owners and residents. The second is to set out the various policies and procedures we all need to abide by if the building is to be looked after and if we are to give due respect to our neighbours. Much of the handbook merely reflects what is to be found in our leases. All of it is common sense and none of it is intended to be intrusive or prevent people from enjoying this lovely place. Part arises from the legal duties placed on the Board of Directors to ensure that, as far as is possible and reasonable, nothing is done which threatens the safety of the building and its residents. The handbook is divided into seven parts. Part 1 gives a brief history of the building. Part 2 provides information about the organisation and management of the company - Knole Road Flat Owners Limited (KRFO). Part 3 is the main meat of the handbook, is organised alphabetically and covers the majority of issues relevant to all. Part 4 goes into more detail than Part 3 on maintenance and the division of maintenance responsibilities between the company and flat owners. Part 5 provides advice on the restrictions and requirements imposed on every one as a result of the Grade II listing of the building. This is essential reading for any one intending to make changes or conduct significant repairs in their flats. Part 6 sets out the responsibilities of landlords in terms of their relationship with the company. It includes the requirements imposed on landlords by the leases as well as the general legal requirements that KRFO has a duty to ensure are complied with. Part 7 is the Code of Conduct issued to any contractors working on the building, whether for KRFO or for a flat owner. The policies and information in the handbook have been put together by the Board of Directors of Knole Road Flat Owners (Bexhill) Ltd in accordance with the authority afforded by the company Memorandum and Articles of Association and taking into account the contents of the leases, the Landlord and Tenant Act 1985 (as amended) and other relevant legislation and government advice. 3rd Edition December 2017 3
Part 1 A BRIEF HISTORY OF KNOLE ROAD Knole Road, or Marine Mansions as it was originally called, was built during the years 1893- 96 as part of the development of Bexhill as a fashionable seaside resort by Gilbert Sackville, the Lord Canteloupe, later the 8th Earl de la Warr. The south elevation of the twenty gables that form the building were modeled on the Queen Anne Dutch style gables to be found at Knole House in Kent. Even the steeped gables on the north elevation reflect the similar run of gables at the rear of Knole House. The area around Knole, including the green space now home to the bowling club, was originally part of a development to create a garden square. The streets around the building and its square are named after relatives of the De La Warr family that fashioned the town’s late Victorian development: Knole Road after the family home in Kent and Brassey Road after the family name of the 8th Earl’s wife Lady Muriel Brassey. Canteloupe Road and Middlesex Road also have names associated with the family. Before the First World War and up until the 1930s a mixture of small hotels, nursing homes and a number of family houses occupied the gables. The Hydra Hotel, a spa resort, occupied the centre of the new building. In 1912 a retired Admiral occupied one of them. During the 1930s and the early years of the Second World War a number of individual flats started to be created with a resident caretaker. In 1940 even a dance school is recorded in the telephone directory. After the war the number of flats gradually increased and the number of hotels reduced. By 1970 only Hartley Court contained the remaining hotel while the remainder of the gables contained the flats that they do now. The Second Word War saw many of the towns on the south coast caught up in the blitz. Bexhill was bombed on 51 occasions as it was often on the flight path of the Luftwaffe to and from London. The German planes were unloading any bombs they had left over in order to make a speedier return back across the channel. Knole Road was hit in September 1940 and the two Knole Court gables were largely destroyed with the bomb falling on gable 6 (the easterly of the two gables). The gables were not fully restored until the late 1950s-early 1960s with the two entrances replaced in a 1950s style that broke the symmetry of the northern elevation. These were restored to the original style of 1890s in 2016 as the final part of the major refurbishment of the northern elevation undertaken by KRFO between 2012- 2016. The overall project was 'Highly Commended' as the runner-up in the main category of the 2017 Sussex Heritage Trust Awards. Matlodge Limited, a property company, bought the freehold of the flats in the 1970s. Concerned about the way the historic features of the building were being eroded a group of residents secured Grade 2 listed status for all the gables with English Heritage on 24th May 1990. For anyone interested in the listing the reference number is 1044256. The following year the residents bought out the freehold from Matlodge and established KRFO. The official incorporation of the company took place on 6th September 1991 with the first full meeting (technically the second) of the Board of the new company held on 19th September 1991. The first few years of the company's existence were fraught with difficulty and with internal disputes of one kind or another. The result was that maintenance was largely reactive rather than programmed, the listing was not always respected and the general condition of the building continued to deteriorate. The current Board has had three major objectives since it was established in 2010: to undo the neglect, introduce a proper programme of routine maintenance and gradually, as funds allow, to restore this beautiful historic building to its former glories. 4
Part 2 ORGANISATION AND MANAGEMENT OF KRFO Background 1. KRFO was set up in September 1991 by the residents of Knole as a private limited company in order to take over the management of the 78 leasehold flats and caretaker's flat. As a result of the conversion of the old boiler rooms at 1a Knole Court and 5b Carlton Court into flats and the sale of the lease on the caretaker's flat the Company is now responsible for looking after 81 flats. 2. Until the formation of the new Board in 2010 the Company did not have its own office and relied on external managing agents for day-to-day operations. This was not providing the quality of service needed to look after this elderly building properly so the Board decided to bring day-to-day management in-house and use the opportunity provided by the conversion of a proportion of the old boiler room to create a Company Office. 3. As part of the drive by the Board to modernise and improve the management of Knole Road this handbook and a Five Year Plan were produced in 2012. The Five Year Plan was completely rewritten and much extended at the end of 2015 and issued to all flat owners. It is intended that the Plan as a rolling five-year programme should be updated every two years. The Board of Directors 4. The Company Memorandum and Articles of Association state that the Board of Directors must consist of a minimum of 2 directors and a maximum of 9. In recent years, apart from short periods, the Board has tended to consist of 4/5 directors. 5. Because of the small size and part-time nature of the in-house team (see Paragraph 6 below) Board members are expected to take on particular responsibilities, depending on their experience and interests, in addition to their general duties as a Director. For example, at the time of writing, one Director has a particular responsibility for finance and legal matters. What this means in practice, whatever the particular area of responsibility, is that the Director concerned supports the appropriate member of the in-house team by mastering the important details of the particular area, undertaking research when necessary, communicating regularly, sharing ideas, acting as a sounding board and providing advice. 6. Board Meetings are held approximately every six to eight weeks. Each meeting is usually based around the discussion of reports covering finance, maintenance, legal and health and safety matters with other less regular items submitted for the agenda by board members including the Company Secretary and Maintenance Manager. 7. There is a handbook for Directors that covers their duties and responsibilities as laid down in the Companies Act 2006 and in the Memorandum and Articles of Association of the Company as well as the particular organisation, procedures and policies of the KRFO Board. This handbook has recently been revised and extended. 8. One of the most important tasks of the Chair of the Board of Directors is to recruit appropriate people to the Board. The most important qualifications are enthusiasm, common sense, the ability to make balanced judgements and willingness to be an active team member. 5
The In-house Team 9. The salaried in-house team created by the Board consists of a Company Secretary, a Maintenance Manager and an Office Manager. All are part-time posts. Under the terms of the leases the Company also employs two cleaners. Because of his skills one has been given increased responsibilities as a handyman including regular testing of the fire alarm system. 10. The creation of a Company Office in 2012 not only provided an on-site base from which the Company Secretary, Maintenance Manager and Office Manager can work but also enabled the Company to centralise and better organise its records. Prior to this they were scattered in cupboards throughout the gables and, as a result, many were lost including some of the original company documents. The Maintenance Team 11. Since 2010 the Board has employed a main contractor for the general maintenance of the building because this has important advantages over using different contractors for the standard tasks. It has significantly reduced the management time required for supervision of the work being undertaken. It has resulted in the contractors getting to know the building really well with the result that they have become adept at diagnosing the causes of problems thus reducing survey costs. The contractors have also mastered the intricacies of the leases with the result that they can distinguish between work that is the responsibility of the Company and work that is the responsibility of the leaseholder thus helping save the Company and other owners unreasonable costs. Last but not least the contractors have developed a real affection for the building and enjoy being part of the Knole Road team. 12. To ensure the cost effectiveness of the main contractor the Company Secretary market tests and reviews labour rates at the start of each year before agreeing a rate with the main contractor. The Maintenance Manager also conducts regular inspection visits to ensure the quality of their work remains high. East Sussex Heritage Awards adjudicators gave external validation of this in 2017 when they specifically mentioned the high quality of the work carried out by the main contractor in their judgement nominating the northern elevation project as the highly commended runner-up. 13. The Company also makes use of a wide range of specialist craftsmen for such things as joinery, lead roofing and flashing, lift servicing and maintenance, painting and so on. Maintenance Management and Priorities 14. The cost effective maintenance of the building is the most important task of the Board. The maintenance work carried out between 2010-15 has enabled the Board to move towards a programme of regular preventive maintenance supported by a regular programme of inspection of the building and especially its vulnerable areas during each year. This forms the basis of the Five Year Plan. The Board is also working towards restoring the building to its former glory step-by step as funds become available. 15. The most important planning task towards the end of each year is the establishment of the priorities for the up-coming year. Having identified the work that is essential this comes down to establishing a balance between what is desirable for the care of the building and the funds available. The draft plan is then reviewed and adjusted as necessary at the end of winter to take into account the impact of the winter weather. 6
16. At the time of writing the four major medium to long term projects the Board has already begun to initiate planning for are the refurbishment of the roof and of the stone and concrete work on the steps, bannisters and pillars on the south elevation, the redecoration of the common areas in the gables and completing the updating of fire safety procedures. 17. The maintenance work carried out during the last five years or so combined with the introduction of the preventative maintenance programme has not only undone years of neglect but has also significantly reduced the number of maintenance issues brought to the attention of the Board by residents. When they occur these are dealt with on a case-by-case basis depending on the urgency of the problem and the availability of funds. Professional Advice 18. The Company retains the use of specialist professional advisers for use when necessary. The use of an insurance broker for the building's insurance has helped bring premiums back down after a spike in 2015. The previous surveyor had 20 years experience of the building. The current surveyor has a special interest in Grade II listed buildings. Surveying costs have decreased since 2012 as the in-house team and main building contractor increased their knowledge of the building and required specialist advice less often. An external specialist conducts a fire safety review every three years. The in-house team conducts more general health and safety reviews regularly. Legal advice is used as sparingly as possible. Annual Budget and Service Charges 19. The Five Year Plan and its updates gives forward projections for the overall budget, the likely allocation of expenditure and the likely levels of service charges. This is reviewed at the end of each calendar year in parallel with the review of the maintenance programme. The latter is reviewed again once the winter storms are over. The move to a rolling preventative maintenance programme and the reduction in unexpected maintenance ambushes has enabled the Company to move to a system of standardised annual service charges. These and the major items of the maintenance programme are published in the January newsletter. Company Accounts 20. The main account is the Service Charge account. The overwhelming majority of expenditure flows through this account. A detailed expenditure table always accompanies the quarterly service charge demands. An audited annual account for the service charge together with company accounts are circulated to all residents in advance of the AGM. 21. The Company has a separate company account fed by the ground rents and income from lease extensions. This account covers items such as directors' insurance as well as being used to provide funds to support the maintenance and improvement of the building. The new hardwood gates installed on the southern elevation during 2017, for example, were part funded by this account and not the Service Charge account. This account is also audited annually and a copy is circulated with the Service Charge account in advance of the AGM. Insurance 22. The main insurance held by the Company is for the building. At the time of writing this is with Allianz on an excellent three-year deal. There is also specialist insurance for the lifts. In addition the Company has specialist insurance for the Directors. This is paid for out of the company account and not the service charge account. 7
Part 3 GENERAL MATTERS (Set out in alphabetical order) 1. Access to Flats. Residents are required by their leases to allow the KRFO Board and/or its representative’s access to their flats under the following circumstances. With the exception of emergencies such access will always be requested with a minimum of 48 hours notice. • To enable surveyors and tradesmen contracted by the Board to carry out essential repairs and maintenance to the structure and fabric of the building. • To enable the Board to carry out its annual maintenance inspection. • To enable the Board to confirm that no hazard or risk has been introduced to the building that may affect the welfare and safety of other lessees, or to identify any behaviour or nuisance by lessees or their tenants that may affect the quiet enjoyment of the property by the other lessees. • In the event of emergencies such as fire or flooding to enable the appropriate service or tradesmen to deal with the problem as quickly as possible. In order to enable access to flats in the absence of residents, especially in the case of an emergency, a set of keys must be deposited in the company office at 5A Carlton Court. Please ensure that in the event of locks being changed an up to date copy is lodged with the office. All keys are kept in a safe and secure environment. 2. Administrative Charges. KRFO charges £25 for administrative work involved in such matters as lease transfers that require input from the Company Office for completion. 3. Aerials (TV and otherwise). The listed status of the building means that it is illegal to attach TV and other aerials to the fabric of the building. A central aerial in the loft is maintained to provide good terrestrial reception. However booster systems may be necessary for good connectivity in garden flats. 4. Alterations to Flats by Residents. The permission of the Board must be sought in writing in advance of any work commencing which involves any alterations other than normal redecoration. Plans should be submitted to the Board showing the detail of the proposed work. Where period features such as cornices, fireplaces or any other of the landlord’s fixtures are involved the changes are unlikely to be approved. This is because the interior and exterior of the building has a Grade II listing. Should work be carried out without the Board’s consent a breach of the lease covenants will have occurred and the company would then seek to take measures to reverse any damage to the building. The Board has a legal duty to protect the listed status of the building as well as ensure that any such work will not endanger the health and safety of other residents. Making changes without consultation or the requisite permissions can have a marked effect on resale values as references to original plans may identify the discrepancies caused by the alterations. Important Note to Purchasers of Properties at Knole Road Anyone purchasing a property in Knole is requested to check via the Company Office that no breach of covenant notice is in force concerning unauthorized changes to the property. 8
These could include a breach of the listing conditions, failure to request consent in writing for changes in the property or carrying out work having had consent for the proposed changes refused by KRFO. 5. Annual General Meeting (AGM). The Company AGM is usually held in the spring. It enables the Board to report on the activities of the previous year and shareholders and residents to raise matters of concern. The agenda, statements of account and minutes of the previous AGM are circulated at least 28 days in advance. Residents need to note the following matters of procedure: • The quorum required is at least 24 members of the Company present in person or by proxy. A member of the Company is a registered shareholder. • Anyone wishing to bring a matter up formally under ‘Any Other Business’ must submit it in writing to the Company Office at least 48 hours and preferably a week in advance of the AGM. • The majority of resolutions put forward at the AGM are ‘ordinary resolutions’. Under the KRFO Articles of Association these require a two-thirds majority of those members of the Company present in person or by proxy in order to be passed rather than the more usual simple majority. For constitutional matters such as amending the company Articles of Association a 'special resolution' is needed. To be passed a special resolution requires a majority of 75% in favour. • Although all residents are encouraged to attend the AGM only those who hold shares in the Company are entitled to vote. 6. Approved Contractors. A list of approved contractors with their contact telephone numbers can be obtained from the Company Office. 7. Asbestos Management. Given the age of the building there is inevitably still some low risk asbestos present. As long as this is not damaged and remains encapsulated it does not present a risk. A risk management plan was drawn up in 2009 and updated in 2014. This instituted the removal of asbestos from flats when it was identified and could represent a risk. 8. BBQs. BBQs are not allowed on the balconies for safety reasons – principally the danger of setting fire to the building. 9. Board of Directors. The members of the Board of Directors are all volunteers. They are always looking for other residents to come and help. For some this could be by joining Board. For those not wanting to join the Board it could be by providing expertise and support in a particular area. If you are interested in joining the Board or wish to communicate with the Board about some matter related to KRFO please contact the Company Secretary (see Paragraph 17 below). 10. Budget Setting. The Board conducts a detailed review of all aspects of maintenance and expenditure towards the end of each calendar year. This provides the starting point for establishing the budget for the coming year. The most important part of this process is identifying and then setting the maintenance priorities. Depending on overall cost and the urgency of the work some maintenance projects are staged in order to reduce pressure on the budget and therefore on service charges. Having set the budget a quarterly fixed rate for service charges is then agreed. 9
11. Cleaners. The Company currently employs two cleaners whose principal task is to look after the common areas. They will also remove rubbish placed outside the front doors of the flats (Monday to Friday) as long as the rubbish is in plastic bags of a manageable size. 12. Coalholes. The old coalholes that are under the pavement and adjacent to the basement/garden flats if integrated into those flats become the responsibility of the resident carrying out the conversion. The Board has no responsibility for any damp or structural difficulties that may subsequently occur. 13. Code of Conduct for Contractors. KRFO has produced a code of conduct for any contactors working on or in the building, whether employed by a resident or by KRFO. The purpose of the code is to help ensure a combination of the highest possible standards in terms of the health and safety of both residents and the building as well as to minimise the disruption to residents when work is being carried out. A copy of the code can be found at Part 7 to this handbook and also on the KRFO website (www.krfo.co.uk) 14. Common Areas. Care of the common areas in each block is the responsibility of the Company. However, residents are requested to keep them free from obstructions because they provide the main escape routes in the event of fire. The cleaners will remove any objects that obstruct these areas. 15. Communication. The Board encourages active and frequent communication with residents about their concerns. The quickest way to communicate is directly with Company Secretary via the company email (info@KRFO.co.uk) or by telephone to the Company Office (01424 212940) and depending on the matter to make an appointment with the appropriate person. The Company Secretary and Maintenance Manager can also be contacted the same way in or der to deal with day to day matters. 16. Company Accounts. A financial statement is reviewed at every Board Meeting and the company accounts are published to all residents and submitted to Companies House annually. In addition quarterly service charges include a detailed statement of the quarterly expenditure. 17. Company Office. The Company Office is at 5A Carlton Court. The office is usually manned by the Company Administrative Officer (not to be confused with the Company Secretary) and/or the Maintenance Manager on Monday to Friday between 9.00 a.m. and 12.00 p.m. If residents wish to see the Company Secretary or Maintenance Manager please make an appointment as they may be around the building. 18. Complaints and Concerns. Any complaints or concerns residents may have, whether about some aspect of the performance of the Company or about any of the Directors or other residents, should be directed in the first instance to the Company Secretary. If the complaint concerns the Company Secretary it should be sent in writing to the chairman via the Company Office who will then deal with the issue. In most cases complaints and concerns are resolved informally through discussion. In the event that a more formal procedure becomes necessary the Company will follow the process set out in its policy on handling complaints. This is based on current legislation and copies are available from the Company Office. 19. Cupboards in Common Areas. The Company owns the 41 cupboards in the common areas (only one appears in the demise of any of the 81 flats). Many have been loaned out to residents. This is on the understanding that no flammable materials will be stored in them, that 10
the Company has right of access to conduct unannounced inspections and that the Company may withdraw them from use should these simple conditions not be met. 20. Damp. The Company is responsible for dealing with all damp arising from the external fabric of the building. The cost of repairs arising from damp caused by the actions, accidental or otherwise, of residents is their responsibility. Advisory Note. On a significant number of occasions when damp has occurred it has been in flats left unoccupied for some time without any heating. As a result there is a build up of condensation leading to damp. When this occurs it is the flat owners responsibility to put right and not KRFO. Flat owners leaving their flat unoccupied for long periods are advised to have the heating on at a low level and to leave all internal doors open to allow a flow of air. 21. Debts and Debtors. In the unlikely event that residents fall behind with the payment of their service charges or fail to pay an agreed capital levy for major works the Company will attempt to resolve the situation amicably. However, residents need to be aware that, as a result of a resolution passed by shareholders at the 2014 AGM, the Company reserves the right to levy an interest charge on late payments. In the event that an amicable resolution cannot be agreed, the Company will have no hesitation in pursuing persistent debtors via the Small Claims Court or the Lease Valuation Tribunal, whichever is the most appropriate. 22. Decorations, Maintenance and Cleanliness. As guardians of the freehold of Knole Road and of the wider interests of all the members of the Company the Board has the right to expect that residents will keep their flats properly decorated, clean and maintained as per their leases. 23. Duplicate Keys. Residents are required to deposit a set of duplicate keys for their flats at the Company Office to enable entry in their absence in event of repairs or an emergency. 24. Electrical Work. Any resident having electrical work undertaken in their flat has a responsibility to ensure that their electrician is suitably qualified and has a Part P Certificate as per Building Regulations. 25. Emergency Contacts. The Knole Road emergency contacts for gas, electricity and plumbing are posted on the inside of the communal front doors. 26. Emergency General Meetings (EGMs). EGMs may be called by the Board or by any group of shareholders with at least 10% of the share value of the Company unless there has not been an AGM for over 12 months in which case only 5% of the share value is required. Thereafter the procedures are the same as for an AGM. 27. Expenditure Priorities. The Board of Directors has the task of establishing expenditure priorities. In doing so it has to balance a number of competing priorities: ensuring that service charges are kept to a reasonable and, as far as possible, a predictable level by sensible programming; making sure that all legal health and safety requirements are met (e.g. fire safety and the safety of the lifts); carrying out an effective programme of preventative maintenance; implementing major restoration and repair projects; responding to the demands of unplanned emergency maintenance. The Board will always seek to respond to the maintenance problems of individual flats in a timely manner. However, given these competing priorities, safety and emergencies excepted, the Board cannot always respond with the dispatch that it would like. 11
28. Fire Safety. Knole Road is an old wooden frame building and thus vulnerable to fire. In view of this the Board of Directors had a detailed risk assessment carried out in 2009. This was updated in 2014 and in 2017. At the time of writing the Board is in the process of implementing the recommendations contained in the updated risk assessment supported by and agreed with the Rother Council Fire Safety Officer. The main responsibility of the Board is to ensure the safety of the common areas but it also has a responsibility to ensure residents and flat owners take reasonable precautions by meeting the requirements listed below. a. Residents, Flat Owners and Fire Safety. Residents are requested to avoid storing flammable liquids and gas containers in their flats and to ensure that electrical installations (e.g. wiring, sockets and fuse boards) and appliances meet current safety standards. Owners who rent their flats must provide a copy of their current gas and electricity safety certificates to the Company Office. b. The Common Areas. The front doors to all individual flats have been fitted with fire resistant hinges and smoke resistant seals designed to provide 30 minutes fire resistance sufficient to enable the safe evacuation of the building. A wireless alarm system has being installed in the common areas linked to each flat adjacent to a communal area. c. Cupboards in Common Areas. All cupboards are subject to twice yearly inspections to ensure that flammable items are not being stored in them. Cupboards housing electrical supply intakes are being fitted with fire retardant doors as part of the fir safety upgrade programme. Fire retardant doors will be extended to other cupboards later. d. Emergency Lighting. Emergency lighting is to be installed via a staged programme in all the common areas to facilitate emergency evacuation in the event of fire. 29. The Five-Year Plan. The Board produced a major rewrite of the Five Year Plan at the end of 2015 that analysed the position of the Company in detail and set out objectives for the next five years. As with any plan it is adjusted to meet changing circumstances. This is particularly so when it comes to maintenance. There is a rolling programme for the maintenance of the gables on the most exposed part of the building - the southern elevation. However this programme is not rigid and is reviewed at the end of each winter to identify those gables that need most attention in the maintenance programme that year. The whole plan is reviewed every two years. A copy of the plan can be found on the KRFO website at www.krfo.co.uk. 30. Floor Coverings. The age of Knole Road means that noise can travel more easily than in modern buildings. As a result residents are expected to cover their floors with carpets or rugs in order to lessen the transmission of noise. 31. Gardens. The gardens are available for use by all but please remember to respect the privacy and the quiet of those who live directly adjacent to them. Dogs are only allowed in the gardens when on a lead and are not allowed to use them as a convenient loo. A garden company on contract to Knole Road maintains them on a regular basis. 32. Gas Safety. Any resident having any work undertaken that involves gas (e.g. fitting a new boiler or stove) has a responsibility to ensure that the engineer carrying out the work is listed on the Gas Safety Register. 33. Ground Rent. Ground rent is charged on every flat, payable in advance at a set rate for the particular flat, and is levied with the quarterly service charges. 12
34. Hot Work - Brazing, Torch Cutting, Grinding, Soldering and Welding. Any hot work required by maintenance or by a development project that involves flames, producing heat and/or sparks must be carried out by someone trained to do so and in possession of a Hot Work Permit GC07. 35. Health and Safety Audit. In addition to reviewing its fire safety measures and policies the Company has introduced a three yearly health and safety audit to ensure that all its working practices and its provisions for residents meet current guidelines. 36. Human Resources (HR) Handbook. In line with current legislation the Company provides its directly employed staff with access to the ACAS HR handbook in addition to their contracts and job descriptions. 37. Insurances. The Company is responsible for insuring the structure and external fabric of the building. Residents are responsible for insuring their own property, fixtures and fittings, for insuring against accidental and other damage within their flats and for their own third party liability. 38. Laser Keys. All the gables have laser cut keys for the main entrances. These keys cannot be replicated without permission from KRFO the licensee. This system provides security for all residents. Some spares are held in the Company Office the cost £10 each. The keys also open the gate lock in the bin area. 39. Lease Extensions. The Company provides lease extensions under the following terms: • Lease extensions will usually only be provided once a property has been owned for one full year from the date of the completion of the purchase. • The cost of extensions will be set at the current open market rate less 25%. • Those who have served on the Board for 3 years or more will be charged the current UK open market rate less 50% in recognition of their service to the Knole Road community. Note. Money raised from lease extensions is used to help build a reserve fund for KRFO. 40. Lettings. Flat owners who decide to let out their flats should take note of the following. Full details are contained in Part 6 of this handbook. a. Registration with KRFO. They must register their let with the Company including the provision of a copy of the tenancy agreement. b. Inclusion of Head Lease. Landlords must ensure that a copy of the KRFO head lease is attached to the tenancy agreement and signed by the tenant. Failure to do so may make the agreement invalid and will make the landlord liable for all tenant contraventions. c. Letting Agents. The Company is unable to deal directly with letting agents since the contractual relationship is between lessor and lessee. Letting agents are unlikely to be fully aware of the lease covenants and although usually providing a good service, are not always members of a regulated organisation such as ARLA. 13
d. Behaviour of Tenants. It is the responsibility of flat owners to ensure that their tenants are aware of the terms of the lease and have a copy of this policy handbook. This will enable tenants to understand fully the way the building and its management functions. It is also incumbent on the flat owner to ensure that they observe the various covenants in the lease especially when their behaviour puts the safety of their neighbours at risk and/or creates an unreasonable nuisance. Failure to carry out this duty will result in action being taken by the Board against the flat owner. e. Gas Safety. It is a legal requirement to have an annual maintenance check of gas pipe work, appliances and flues carried out by an engineer registered with the Gas Safe Register (formerly Corgi). All work related to gas and gas appliances must be carried whether part of the maintenance check or not must be carried out in a timely manner by a Gas Safe Registered engineer and at the cost of the landlord. A copy of the engineer’s Gas Safety Record must be lodged with the Company Office. f. Electrical Safety. The 2016 Housing and Planning Act requires a formal certificated inspection of electrical installations (e.g. wiring, fuse boards and sockets) and at the beginning of each new tenancy by a registered electrical engineer in possession of Building Regulation Part P certificate. A copy of the engineer’s report and the Electricity Compliance Certificate (ECC) must be lodged with the Company. Note. The regulations implementing the Act in terms of when, how frequently and how electrical inspection should be carried out have not yet been issued. KRFO will publicise these once they have been issued. 41. Lifts. The lifts are for the use of residents. They are expensive to maintain and are subject to regular inspection and servicing with an approved company. It is therefore important that they are not overloaded and that tradesmen undertaking private work in flats do not use them. In the event that a lift is damaged as a result of misuse the flat owner responsible will be required to bear the cost of the repair. An emergency telephone is installed in each lift and is connected 24 hours a day to an operator. The telephone is programmed to dial only the emergency number. 42. Loan Stock. The freehold was purchased in 1991 from Matlodge Ltd (no longer in existence) and a loan of £53,400 was raised and lent to the company, Knole Road Flat Owners (Bexhill) Limited, to complete the transaction. This was funded by a number of philanthropic lessees and became the loan stock of the company. All shareholders own a share of the loan stock that has been purchased and then incrementally repaid to the previous benefactors. Under the terms of the original Loan Stock Agreement, the entire loan was due to be repaid without interest in September 2011. At the AGM on 22nd May 2011 the shareholders agreed to postpone the payment for thirty years to 2031 with the intention that inflation would diminish the company liability. The decision taken was based on the deficit in the company’s accounts that such a repayment would make and the fact that it would cause an interruption in the maintenance programme which could only be rectified by a demand through the service charge account. Such a procedure was deemed a waste of the company’s management resources and therefore not in the long-term interests of the shareholders. 43. Lofts. On the advice of the Rother Fire Safety Officer access to the lofts has been closed off as in the event of fire they are likely to become smoke filled and therefore a threat to life. 14
44. Maintenance. The Company is responsible for the maintenance of the external fabric of the building including the roof, foundations, and external walls, window frames, guttering and down pipes via a programme of preventative maintenance. The main problem is usually damp and the Company is dependent upon being informed by residents when damp problems occur. Repair work is undertaken in as soon as possible. On occasions, this may not be immediate, depending on the financial implications and other necessary works. In the event of a problem contact the Maintenance Manager in first instance by telephone or email. a. Funding. The principal source of funding for maintenance is the service charges raised from residents. The Company also raises money from lease extensions. b. Priorities. The maintenance programme is reviewed annually and clear priorities of work established for the upcoming year. The three priorities that underpin construction of the programme are in order of importance: 1. Anything affecting the safety of residents e.g. fire safety measures and the lifts. 2. Waterproofing the building via a programme of preventative maintenance. 3. Aesthetic items that carry less importance but still require attention When a maintenance project arrives in the office it is allocated a priority rating as set out above - 1, 2 or 3 - and depending on funding availability at the time of the reported matter, a time slot for the work is allocated and residents notified. In a building of this age there will be times when category 3 items can be postponed for lengthy periods. c. Preventative Maintenance. At the heart of the maintenance programme is a rolling programme of preventative maintenance. For example, the south elevation is the most vulnerable part of the building as it feels the full force of the prevailing seaside weather. To combat this three, sometimes four, of the gables on the south elevation are scaffolded every year to enable repairs to be carried out and the waterproofing of the building to be maintained. A second example is the use of cherry pickers twice a year to ensure gutters, hoppers and downpipes are kept clear of obstructions and repaired when necessary. d. Major Projects. It is hoped that the preventative maintenance programme being introduced will mean that major restoration projects for the north and south elevations will not be necessary in future. The Company intends to avoid using Section 20 capital levies on flat owners if at all possible as it is starting to build a reserve fund. Looking ahead the major maintenance challenge is the refurbishment of the roof - probably in five to seven years or so. Detailed research and planning on the most cost-effective way to carry out the refurbishment is already being undertaken. 45. Newsletter. The Board publishes a newsletter to all residents every quarter. The purpose of the newsletter is to keep residents up to date with work that is being undertaken by the Board and any significant developments that impinge on Knole Road. 46. Noise. Residents are requested to respect the peace and privacy of others. Noise travels easily in this beautiful old building more than it would in one of a more modern construction but less beautiful aspect. It would be helpful if residents could minimise the usage of the lifts between 11pm and 6am in the morning. If residents anticipate an unusual level of noise in their flat they are requested to let their neighbours know as a common courtesy. 15
47. Parking. Parking can be difficult because of the frequent use of Knole Road by non- residents. Please avoid parking on pavements and especially by the steps leading up to the entrances as this can damage the ceilings of basement flats. 48. Patios. The Board must be informed in advance whenever a patio is to be replaced or installed as part of one of the basement flats. This is because, in some cases, new patios have been laid over existing patios and have either covered airbricks or blocked drains resulting in serious damp problems. 49. Pets. Keeping pets in a block of flats, especially dogs and cats, is not the same as keeping them in a detached or semi-detached private residence with its own garden. This is why the leases state that any flat owner wishing to have a pet in the building must get the formal consent of the Board. This is only given on the understanding they do not provide a nuisance to other residents and that this permission may be withdrawn. Please note dogs are only allowed in the gardens on a lead and must not be allowed to use them as a convenient loo. Important Note. As a result of past difficulties in dealing with tenants over this issue the Board will not grant tenants permission. Anyone letting their flat needs to bear this in mind. 50. Pigeons and Seagulls. Residents are politely requested to refrain from feeding pigeons and seagulls as their waste produces acids that can erode masonry and a build up of waste can result in gutters, hoppers and downpipes becoming blocked. KRFO does take measures to mitigate the impact of the birds via pigeon spikes and the regular inspection of gutters, hoppers and downpipes. 51. Reserve Fund. One of the weaknesses of the Company identified in the Five Year Plan was the lack of any financial reserves. This has started to be put right with the establishment of such a fund. It is being built up using the income from lease extensions. However, the Company is also investigating what other sources of income it might tap into. 52. Recycling. The designated rubbish area for the residents of Knole on the corner with Middlesex Road has recycling bins for paper, card and plastic. Those wishing to dispose of glass will need to go to either the recycling area at the entrance to Sainsbury's car park or to the recycling area at 'The Gap' opposite Wickes. 53. Rubbish. There is a designated rubbish area exclusively for the residents at Knole on the corner with Middlesex Road. This now has a gate to prevent fly tipping. The lock on the gate can be opened using the gable door laser keys. This area is for normal household waste. Large boxes, items of furniture and so on should be taken to the two rubbish tips in Rother. The Pebsham site is located on Bexhill Road, in between St Leonard’s and Bexhill (A259) and Mountfield site is located on the A2100 road between Johns Cross and Battle. Residents can also arrange the disposal of bulky items via Rother District Council. 54. Sale of Flats. Although there is no obligation to do so owners are politely requested to notify the Company when they put a flat on the market. KRFO is sometimes aware of people who may be wishing to purchase at Knole Road. This is principally for security reasons and also so that any outstanding service charges are settled. Owners are also politely requested to lodge the name of the purchasers of their flat and the details of their solicitors with the Company. This is to enable a proper welcome as well as effective liaison. 16
55. Security. Residents are requested to help with the security of the building by ensuring that the outer doors are properly closed. Occasionally and usually when there is a strong wind the door closers are not completely reliable. 56. Service Charges. Service charges are distributed together with a notice of lessees and tenants statutory rights under the Landlord and Tenant 1985 (as amended) a few days after the end of the company quarter days, 29th September, 29th December, 29th March and 29th June. A detailed Statement of Account showing how the expenditure has been computed accompanies them. They are based on the percentage that the flat occupies in the overall footprint of the building as set out in a Deed of Covenant. a. Payment. Service charges may be paid by cheque made payable to Knole Road Flat Owners Limited or by standing order/direct debit. They must be paid within 14 days after the demand has been received. As a result of a resolution passed at the 2014 AGM, interest charges are applied to accounts that are in arrears. The Company Secretary will provide the details needed to set up a standing order/direct debit. b. Annual Fixed Rate. Service charges are set at a fixed amount for each twelve-month period based on the budget that has been put together by the Board of Directors. This is to enable residents to plan their finances for the year ahead. 57. Shares and Share Certificates. The Company issues shares and share certificates and keeps a register of all certificates that are issued. The value of each share is a nominal £1. 58. Shareholders. Shareholders become members of the Company, own a percentage of the freehold and have the right to vote at Company meetings. Under the Articles and Memorandum of Association shareholders only have one vote for each share they hold. 59. Tradesmen. When residents employ tradesmen, the tradesmen must register with the Company Office. Residents must ensure that their tradesmen have public liability insurance, the appropriate certificates (e.g. for work involving gas or electricity) and a hot works permit if any soldering, cutting device using a flame or welding machines are to be used. If needing to gain access from a flat roof they must put down protective covering over the roof material - usually lead. Tradesmen must not use the lifts for moving heavy items of whatever description. There is a Code of Conduct for tradesmen. This can be found at Part 7 of this handbook and a copy is also on the KRFO website. 60. Utilities, Taxes and Licences. Residents are responsible for arranging for their own gas, water, electricity, telephone, Internet, TV and TV licence and for their own council tax. 61. Washing. Residents are requested not to hang washing out of windows or on balconies. 62. Website. There is a KRFO website. It can be found at www.krfo.co.uk. It contains copies of the latest newsletters, this handbook, the Five Year Plan and other useful information. 63. Windows and Window Cleaning. KRFO is responsible for the care, maintenance and when necessary replacement of external window frames. Residents are responsible for the glass. The leases stipulate that residents are responsible for ensuring their windows are cleaned regularly. 17
Part 4 MAINTENANCE RESPONSIBILITIES Introduction 1. The purpose of this part of the handbook is to set out the duties and responsibilities of KRFO, the freehold company, and of flat owners for the care and maintenance of the building. It also provides an outline description of the nature and make up of this now often quirky building. 2. The impact of the Grade 2 listing of the building on both KRFO and flat owners is set out in Part 5 of the handbook and should be read in conjunction with this part. 3. The sections dealing with the duties and responsibilities of the Company and the flat owners have been put together from the contents of the leases in what is hopefully a more digestible format. The Nature of the Building 4. Original Structure. The building is of wooden frame construction with an external lining of brick and then a void to the internal walls that were originally made of lathe and plaster. Timber in the building is almost all Douglas fir, a solid and robust timber although strangely from the soft wood genus. The sash windows are also Douglas fir and ideally suited for the building as they can stand the test of time. Victorians insulated the windows with heavy thick weighted curtains that obviated the need for today’s modern glass insulation. The principal behind the construction was that the bricks and their blanket of lime mortar absorbed moisture from the weather, the lime mortar, in a sacrificial process and the brick via two-way transference of moisture. The small 50mm void between the outer and inner walls was to prevent the transference to the internal walls of any water that penetrated. The use of lime in decoration and plaster underpinned the moisture absorption process and the up- draught from the fireplaces in almost every room completed the system of moisture removal yet within a well aired room. 5. Changes to the Building. Over the years the building underwent a number of changes that undermined aspects of the original structure and affected its ability to withstand the winter weather. The bombing in 1940 caused the most dramatic damage to the building. When repaired in the 1950s the work was not done to the same standard as the original. In all sorts of areas of the building the wrong kind of pointing was used when repairs were carried out, the original hardwood windows were replaced with aluminum ones and lathe and plaster walls were replaced with less effective alternatives. In addition, until the listing of the building many aspects of architectural interest, such as some of the fine plasterwork, was damaged or removed. 6. Brickwork and Pointing. In terms of the weatherproofing of the building the most serious damage was caused by the failure to use a lime mortar mix modeled on the original mortar. In some places the mortar used was too sandy and could not withstand the weather, in others a concrete mix was used with a rigidity that caused the brickwork to spall. The last few years has seen these errors gradually put right - at the time of writing one or two areas still need replacement - with the result that the building is becoming increasingly weather resistant. 18
Note. Once all the pointing is of the same standard and the Company has a better feel for how long it can withstand the winter storms, it may become possible to reduce the scale of the preventative maintenance programme to some extent without prejudicing the weatherproofing of the building. However, given the age, structure and location of the building a regular well-targeted preventative maintenance programme will always be needed. 7. Occurrence of Damp. The serious damp that used to be a major problem in the building has reduced significantly as a result of the repointing done on both elevations. The building will always be exposed to damp because of its location and hence the need for the on-going preventative maintenance programme. There are three main causes of damp: bridging across the void between the external and internal walls caused by the gradual failure of the lathe and plaster system, the failure to seal flues of new boilers properly when installed and condensation caused by the failure to heat flats during the winter (this mostly occurs in flats that are only used as holiday homes). a. The Company has developed an effective replacement for lathe and plaster walls when they fail. The Rother Conservation Officer has approved this solution. b. It is very important for the avoidance of damp in the building that when new boilers are installed their flues are properly sealed so that the external walls remain watertight. Note. KRFO has had to remedy damage caused by sloppy work on too many occasions and reserves the right to pass on the cost to the flat owner in cases of negligence. c. If a flat is left empty for significant periods of time, especially in the winter, the best way to avoid the damp caused by condensation is to have heating on at a low temperature. 8. Windows. Because the building has a wooden frame it flexes and moves more than a modern building with a concrete or steel frame. Hardwood sash windows - as per the original windows - maintain their seals with the surrounding walls, and therefore their water- proofing, better than the aluminium ones that have been installed at various stages because they flex and move more in tune with the building when it flexes and moves. Comment. The Company hopes that over time all the aluminium frame windows will be replaced with hardwood frame sash windows, as this will improve both the waterproofing of the building and also its aesthetic appearance. Responsibilities of KRFO - the Freehold Company 9. The duties and responsibilities of KRFO are set out in the leases at Paragraph 1, in Paragraph 4A and in Paragraphs 5 and 10 of the 3rd Schedule. They are summarised below. The word 'maintain' is used as a 'catch all' to cover both repair and redecoration. • To maintain the external and internal walls (but not the interior faces that bound a flat). • To maintain the roof including beams, tiles, skylights, chimneys, gutters & down pipes. • To ensure the utilities connected on or under the building are in kept working order. • To maintain the passenger lifts and associated machinery. • To ensure that any boundary walls, fences and gates are kept in good order. • To tend and keep clean the gardens, pathways and all other external areas. • To keep the common areas clean and well lighted. 19
The Responsibilities of Flat Owners 10. The responsibilities of flat owners are set out in the leases in Paragraph 1, Paragraph 2 and its many sub-paragraphs, in Paragraph 1 of the 1st Schedule and in Paragraphs 2, 4, 7, 12 and 18 of the 4th Schedule. They are summarised as follows: • To be responsible for interior faces of the walls, external or internal, that bound the flat. • To be responsible for replacing the glass in the windows when necessary. • To make good any damage caused by their own actions or those of a tenant or visitor. • To maintain the flat in good decorative order. • To ensure fixtures and fittings are well maintained, cleaned and kept in good repair. • To meet the legal requirements, new or old, imposed by public authorities. • Not to install external fixtures such as awnings or aerials without permission of KRFO. • Not to allow the grounds and gardens to be fouled by dogs. • Not to authorise tradesmen to use the lifts or allow them to be used for carrying goods. • Not to obstruct common parts with items such as bicycles, prams, furniture or rubbish. • Not to do or store anything that could increase the fire risk and prejudice the building insurance policy. Note 1. The leases describe the lifts as 'passenger lifts' - see Paragraph 4A (c). Hence the clear restrictions on their use set out in the leases. They are old and expensive to maintain. They are safe and in good working order but need to be treated with respect. Note 2. Keeping the common parts free from obstruction is mostly for safety and ease of passage. Residents are respectfully requested to help the Company in keeping the building as safe as possible by adhering to this lease requirement. Changing the Layout of Flats 11. Flat owners need to be aware that the lease makes it very clear - see Paragraph 2 (13) - that any proposed structural alterations must be submitted to the Company for formal written approval, and depending upon the work, will probably almost certainly need to be submitted to Rother Council for Listed Building Consent. Access by the Company 12. Whenever possible the Company will always seek to avoid disturbing residents from the peaceful enjoyment of their flats. Unfortunately maintenance and fire safety requirements make this unavoidable on occasion. The Company will always provide the minimum of 48 hours notice required by the leases - see Paragraph 2 (10) - when it needs access to a flat or there is likely to be work that may disturb. Whenever possible the Company will provide much longer advance warning. The only time the Company would consider breaching the 48 hours limit is in the event of a serious emergency. Flat owners are respectfully reminded that under the leases - see Paragraphs 2 (10) and (11) - the Company has right of access to enter in the flats in order to carry out its lawful maintenance and fire safety responsibilities. 20
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