Many leaseholder-led buildings find the sweet spot is this: directors manage what they can see, such as the cleaner, the gardener and repairs, and hand over what they find tedious or risky, such as the accounts and the company’s statutory work. This guide sets out how that split can work.
What the directors do
- Agree the scope and standard of each contractor, and see the work for themselves.
- Get quotes, choose contractors and give instructions.
- Approve invoices before they are paid.
- Deal with residents’ queries about the building.
- Make the decisions that belong to the board: budgets, major spending and policy.
What MTM can do
Murphy Thompson Moore LLP is a firm of accountants and company secretaries. For a self-managed building it can support the directors with:
- bookkeeping and payment of approved invoices;
- the service charge budget and year-end accounts;
- the company’s statutory accounts and tax;
- confirmation statements and other Companies House filings, and the statutory registers;
- meeting notices, agendas and minutes.
The exact scope and the fee are agreed in writing for each building. Murphy Thompson Moore LLP provides these as professional services under its own terms, separately from the Leasehold Clarity platform.
A simple division of tasks
| Task | Directors | MTM |
|---|---|---|
| Choosing and instructing contractors | Yes | |
| Checking the work on site | Yes | |
| Approving invoices | Yes | |
| Paying invoices and keeping the books | Yes | |
| Service charge budget and accounts | Agree | Prepare |
| Companies House filings | Sign off | Prepare and file |
| Meetings: notices and minutes | Chair | Prepare |
Controls that protect both sides
- A written limit above which two directors must approve spending.
- Contractors invoice the company, not individuals, and invoices quote the building.
- Payments are made from the company’s bank account only.
- A regular reconciliation between the bank, the books and the budget.
- A record of every contract, with start date, price and notice period.
Using the platform
Keep the documents, the compliance calendar and the communications in one place, so the directors and MTM see the same facts. This makes handover easy when a director steps down.
Next steps
- List the contractors and services the building uses now.
- Agree which directors will oversee each one.
- Ask for a written proposal for the back-office work.
- Agree the spending limits and the reporting you want.
This guide is general information, not advice on your circumstances. Leasehold law is detailed and changes: check the current position and take advice before acting.