Your percentage share of the annual budget as determined by your lease. The annual budget includes forecast costs for maintenance, compliance, insurance, utilities and reserve provisions. The annual budget is calculated based on:

– prior year actual expenditure
– knowledge of required maintenance & statutory expenses
– inflation and supplier price changes

The draft budget is circulated to the Directors for review and approval before issuing service charge notices.

In line with the lease which is usually quarterly or half-yearly.

Supplier price changes and inflation, insurance reinstatement valuations and insurance claims, statutory compliance, planned repairs and maintenance, and planned major works. Increases are always agreed with Directors in advance.

If the lease permits, yes. We prepare a 10 year capital expenditure plan and review lessee contributions with the Directors during the annual budgeting process.

Yes. Each building has at least 1 separate bank account with interest accruing to the leaseholders; bank accounts are reconciled monthly and certified annually by independent accountants.

Monthly – including a cashbook and building inspection reports, plus year-end accounts.

The annual budget is calculated based on:

– prior year actual expenditure
– knowledge of required maintenance & statutory expenses
– inflation and supplier price changes

The draft budget is circulated to the Directors for review and approval before issuing service charge notices.

Within 6 months of the year end and circulated to all lessees once the accountant has certified them.

No. Service charge accounts are not required to be audited, but are independently reviewed by accountants appointed annually by your building’s Directors, in line with industry best practice (Tech 03/11).

This review (specifically a ‘Report of Factual Findings’) confirms that spending matches the budget and invoices, giving leaseholders clear, independent assurance without the cost of a full audit.

Bank transfer or standing order. We do not accept card payments for service charges so that the building does not incur bank charges.

Service charge notices are sent 4-6 weeks in advance of the due date, three reminders are sent, interest is charged if the lease allows, then legal steps where necessary, with Director approval and cost transparency.

Yes. We provide arrears summaries to Directors, in line with data protection.

Where appropriate and agreed by Directors, yes.

Low and actively managed. Levels vary by building and can be reported to Directors on request.

Only when internal steps are exhausted and Directors approve. Frequency is low.

Typically monthly, as agreed in the management contract.

Yes. An emergency is any immediate risk to life, safety, or the building itself — such as fire, live electrics, major leaks, or unsecured entry. In these cases, we act immediately.

Call 020 7043 8434. If you are calling after office hours, listen to the voicemail for the M2 contact on call.

Urgent issues are prioritised for immediate action. Minor issues are usually attended within 5–10 working days, subject to parts and access. 

Yes. We work with local firms we use regularly for their quality, value and reliability.

Yes. We’ll review competence, insurance and value before approval.

We act within an agreed spend limit for urgent/minor works; above that, we seek Director approval. Typical limit: £500 + VAT unless otherwise agreed.

A statutory consultation with leaseholders for qualifying works or long-term agreements. We either prepare specs, tender, consult and report outcomes for smaller project and engage RICS accredited surveyors for larger projects.

Sealed tenders are received against a specification; evaluated by M2 and, where needed, a surveyor. Building Directors approve.

Yes. We maintain rolling plans and incorporate them into budgets and reserves.

Clear specifications, multiple contractors invited to tender, comparable analysis and independent oversight where appropriate.

M2 manages delivery and coordinates approved surveyors/contractors; we handle complex projects routinely and work with independent RICs accredited surveyors.

Yes, based on proven performance and relevant insurances.

To allow for unknowns in older buildings — where access may only be possible once scaffolding is in place or intrusive investigation is required — and to avoid repeated approvals once works begin.

Regular updates to Directors and residents at agreed intervals, including programme, costs and variations.

Surveyor and/or M2, with completion certificates, warranties and compliance documentation filed.

By the insurer’s risk assessment which includes the rebuild value, claims history, location, specific policy conditions and the excess. Cover is for repairs to the the building structure and communal parts following an insurable event; contents in flats are not covered under the buildings insurance policy and owners are required to arrange their own insurance cover.

Yes, for contents, including floor coverings, and any improvements within your demise.

We notify, liaise with insurers and loss adjusters and coordinate communal repairs to conclusion. Leaseholders are responsible for managing any claims on the policy within their demise.

No, we don’t earn a commission.

Based on location, claims history and insurer risk models; higher excess helps keep premiums viable.

Excesses vary by risk type and policy. They are the responsibility of the party where the cause originated from – either a leaseholder or the freeholder.

We obtain quotes and coordinate works for claims which are the responsibility of the building, the leaseholder is responsible for arranging their own quotes for repairs within the demise of their flat.

It usually covers statutory inspections. Repairs are separate and quoted.

To protect the building’s Directors against personal liability arising from company decisions.

To keep the declared rebuild value accurate and avoid under-insurance.

They require an updated Fire Risk Assessment and a plan for implementation of any remedials required. We’ll flag and plan any required actions in advance.

Email us with your flat and building details and we’ll send the current schedule.

To prove the system is working and catch faults early. Under the Regulatory Reform (Fire Safety) Order 2005, fire systems must be kept in efficient working order, and BS 5839-1 is the recognised benchmark — which requires weekly testing.

Required under the Fire Safety (England) Regulations 2022 to ensure they perform as intended; the inspection frequency is required under the fire risk assessment (FRA) and current guidance.

These are required under the Fire Safety Order for safe evacuation of residents and visitors to the building.

No, fire extinguishers are not a blanket legal requirement for the communal areas of most residential blocks. They are only required if the Fire Risk Assessment (FRA) specifies them.

You can request replacements by emailing M2. We verify entitlement and provide at supplier cost plus any postage charges.

Access is strictly governed by UK data protection laws. If you are the subject of the footage, submit the specific date, time, and location within 30 days. For theft or damage, footage must be requested directly by the Police or a solicitor. We only release footage where lawful and may blur third parties to comply with GDPR.

Yes. We offer a free, secure key-holding service for all leaseholders in managed buildings. Keys are held only with your consent.

Where we hold keys, our on-call team or contractors will use them to access the property and mitigate damage. If no keys are held, we will attempt to contact the owner immediately.

In the event of an emergency, defined as an immediate risk to people or property, we reserve the right to gain emergency entry. Any costs for forced entry or lock replacement will be the owner’s responsibility.

Frequency is agreed with your building’s Directors, typically weekly or fortnightly.

Typical scope includes common parts floors, glass, bins, surfaces and outside entrance.  Bin store rooms often require deep cleaning at an additional cost.  Cleaning of individual flat windows is usually the responsibility of the lessee.

Flat windows are usually the leaseholder’s responsibility.

Through scheduled inspections, contractor checklists and resident feedback.

Yes. We can arrange and quote separately.

Typically annually, or more often in high-traffic zones.

Tariff changes, longer run-times (heating/lighting), faults (e.g., lights left on, failed sensors) or added equipment.

Permission depends on your specific lease. Many leases prohibit pets entirely or require your landlord’s formal consent via a pet licence to ensure it does not cause a nuisance to other residents. There is an administration fee charged to the leaseholder for preparing a pet licence.

Where the issue originates in the building’s common parts, responsibility sits with the freeholder or RTM company and is covered via the service charge.

Usually the leaseholder, unless the issue is caused by a building defect.

Professional pest control treatments, better sealing of affected areas and more frequent vacuuming to remove larvae ; we can arrange quotes for treatments or replacement of damaged carpet.

Often not, you must check your lease or you could risk legal action. Local councils also have restrictions on short term lettings which differ by borough and might require planning permission. You might also be in breach of insurance or mortgage terms.

Yes, by arrangement, ensuring compliance with local rules and building covenants.

From your solicitor or Land Registry. We often hold reference copies for management, where they have been provided.

It is consent by the Freeholder for specified changes within your flat, such as structural, plumbing and electrical works.

We coordinate the process. Send us the plans, specification of works and health and safety. We’ll arrange for the Freeholder’s surveyor to review the documents, survey the property and approve the works. The Freeholder’s solicitor will then finalise the Licence to Alter.

The Freeholder’s professional fees including surveyors, solicitors and M2’s administrative fees, all payable by the applicant leaseholder.

Often yes, for significant works a security deposit is required before a licence is granted to cover potential damage to common parts by contractors. The deposit is held in the service charge account and fully refundable upon completion of the works once a final inspection is carried out by a surveyor.

Yes, we can facilitate the process though it is important to note that M2 represents the Freeholder’s interests. We can recommend specialist RICS valuers and solicitors and we can provide the necessary building information. You will be responsible for both your own costs and the reasonable professional costs incurred by the Freeholder.

Your building manager in the first instance; they will coordinate with the company’s officers, solicitors or surveyors as required. Professional fees may apply if third party advice is required.

The AGM is a formal yearly meeting between the company’s Directors and the shareholders/leaseholders, held once per year usually within 6 months of the financial year end as dictated by the company’s Articles. Typical agenda includes: accounts, budgets, appointments, planned works and general queries.

Yes. Submit your items to M2 in writing before the notice deadline.

Yes, we can act as Company Secretary by prior arrangement to ensure compliance with the Companies Act. This service is provided for a separate annual fee, which is outside the standard management contract.

Directors are appointed in line with the company’s Articles which is the contract between the company and its members. Under the company’s Articles. Contact the company secretary or Directors for process and timings.

These are the rules that define how the freehold or RTM company is governed, including who can be a member; number of directors and appointment or removal process; voting rules; AGMs; and financial management.

Your solicitor will request an LPE1 (Leasehold Property Enquiries) pack directly from M2 which provides the buyer with essential management information. Our standard fees are from £250 + VAT (10-15 working days) or 24-hour express service from £350 + VAT from receipt of payment.

Yes. Additional fees may apply for extended Q&A.

No, contributions to reserve funds are not refundable when a property is sold. These funds are held in trust for the long term benefit of the building. During the sale process, your solicitor will handle apportionments and the buyer will reimburse you for the portion of the year they will own the property.

Yes. Any outstanding service charges or reserve fund contributions must be settled before a sale can be finalised. Arrears can be settled via a solicitor’s undertaking from completion monies.