Development finances

Float

The float is an up-front payment of an agreed sum which is the same for all properties on the development. This provides us with cash flow/working capital to ensure timely payment to contractors for your maintenance and service charges. 

All float payments are held in the development bank account. Floats are refundable to homeowners should they sell their property (less any outstanding balance on the account).

Invoices

Invoices contain information about all charges applied to the development during an invoicing period, along with the homeowner’s share of charges. The brought forward and outstanding balance for each homeowner is displayed, as are any payments received during the invoicing period.

Invoices will be sent to homeowners based on their preference, either by post or email.

Contractor invoices are uploaded to the portal and can be viewed there.

Invoices are due for immediate payment on receipt of the invoice.  This ensures that the development bank account has sufficient funds to meet the cost of all services provided.  Payment terms and conditions can be found on the reverse of paper copy invoices, or within our Written Statement of Services.

If you wish to dispute an amount on an invoice, this should be raised with your Client Relationship Manager in writing within 14 days of the invoice date. The disputed amount will be put on hold while further investigation is carried out. All undisputed items should be settled immediately to avoid late payment charges. 

Payment

Payment can be made by:

  • BACS

  • Online payment (via the portal)

  • Card payment (via telephone)

  • Direct Debit

Please see your invoice for further details on how to pay.  Our preferred method of payment is Direct Debit, either monthly or quarterly.  Paying by Direct Debit will ensure that homeowners avoid any late payment charges being levied and helps spread costs over a year.  Direct Debits are collected on the 1st of the month or the nearest working day.  Should your Direct Debit need to be amended we will contact you in advance in writing.  If you wish to set up a direct debit or to discuss other payment options, please contact us.

Development debt

Homeowners are collectively responsible for the financial obligations arising on areas under common ownership. The Title Deeds/Deed of Conditions places a joint and several liability on all co-owners in respect of maintenance charges for the common areas of a development. 

If a homeowner does not pay their share of charges in a timely manner and an outstanding balance builds up, we will follow our debt recovery process as detailed in our Written Statement of Services. We do this on behalf of the collective homeowners to whom the debt is owed. 

In some circumstances we are unable to recover funds.  Where we have exhausted our debt recovery process and a balance remains outstanding, we may apportion the balance among the current homeowners. We do this in accordance with the terms set out in your Title Deeds/Deed of Conditions.  This will ensure the development has funds in the bank account and services can continue to be provided to the development.

The debt we may have to distribute relates to one of the following:

  • Homeowners who sold their property over a year ago. The selling solicitor held no retention to settle final invoice to sale date and it is not cost effective to incur further legal costs to trace and pursue after our internal credit control process has been exhausted.

  • Current homeowners who have built up a substantial debt and have been going through our credit control procedures for some time. We may be awaiting a court decree against them, they may have a decree in place, they may have been sequestrated or live out of the UK and cannot be traced without incurring further substantial cost.  The debt is distributed to aid development cashflow and ensure services can be maintained as normal 

We appreciate how frustrating this will be for the homeowners who settle their invoices on a timely basis. Please be assured that we continue to pursue the outstanding balance using all debt recovery procedures available to us in Scotland as far as it is cost effective to do so.  Where funds are subsequently recovered from the defaulting homeowner, credits will be applied on a timely basis, ensuring all homeowners who paid the spread debt receive credit in full.  If you sell your property in the period in between the debt being spread and funds being recovered, we will pass the refund on if you provide us with a forwarding address.