Dear Resident f Lessee 28 July 2010
We are responding to e number of concerns and questions raised by various lessees in recent weeks. We are using this opportunity to answer these questions and alien/fete those concerns,
This Ietter to lessees is longer than usual, but we hope that this level of detail will be welcome by you and provide an overview of the current main issues.
As you know from our recent July letter, we are changing managing agents for Sussex Heìghis We had been speaking to alternative managing agents and looking for recommendations from other Well run blocks of flats for some months.
We have new appointed Austin Rees as ine agents for tne building. Their offices are at 135-137 Dyke Road, Hove, on the corner of Dyke Read and Melvilie Road, close to the Seven Dials roundabout. Austin Rees specialise in the management of blocks ef flats and are the managing agents tor Furzeoroft= Wick Hat! and Courteney Gate amongst others. The main person with responsibilities for the day to day running of Sussex Heights business will be Mrs Miehelìe Yule. Micheile has worked at Austin Rees fortwo years eno prior to that she wee responsible tor Facilities tx/ianegement at the prestigious Btueweter Shopping Centre.
Selection Qrocess: Q 6 organisations were on the initial tong tist – drawn up according to reputation of company and location of (ie, in Brighton and Hove). After this, one organisation was dropped because they couid not administer our staff. B The remaining 5 organisations were invited to cempiete a questionnaire detailing the level of senfíoe required. ß After this, a second organisation was dropped because it was found Ihat they too would not administer our statt; a third was discounted because they appeared excessiveiy expensive and could not give Us a price, and indicated additional charges for sen/ieee not asked for by the other bidders. The three remaining organisations were interviewed by Directors of the Beard end Austin Rees convinced us they offer best value for money for Sussex Heights: «» Better 24 hour emergency services 0 More in-house capacity for surveying work if required. D Bigger and streamlined in-‘mouse accountancy service with excellent reporting I accounting software to eHow more transparency on all ítems of income and expenditure.

° Good buying power with insurance companies to negotiate good insurance deals for SH and en etficient process for dealing with claims. LAII _ _ “Í Track record in conducïing regular value for money reviews on all items of expenditure on behalf er’ cliente like us. » Increased iiexibiiity een be offered to ieaseholders as to how service charges are paid (online transfer, standing order, cheque, or by going to the offices and pay by cash there). ‘ “” I’ ‘ Il- _ -_ _ 1 I _ ___ _ Exceilent statt within Austin Fiees will be the ieaci en Sussex Heights, with a designated block manager visiting SH at leest ence a week. This wiil be at the seme time every week _being abi@ to speak directly to the managing agenïs representative at this time. We have suggested that the designaied time be Ham on Wednesday mornings. _backup staff the organisstioh to cover for SH in case the iead person for Sussex Heights is on holiday or iN.
F’!ease also note thaï the Austin Hees management fee is more competitive than Countryw‘.de’s we felt that having a management company with an in-house (Brighton based) accountancy service ter dealing with service charge payments and the like is very important. Many
Íeesehotdere had problems sewìoe charge payment practicaiitíes after Counîrywide moved their accounting services to Southend.
As you are aware, the possibility of having to remove the nesting box for the Peregrine Faioons to Conduct the forînooming major building works (inoludìng repairs to the roof) is unpopuìar with some leaslehoiders. No îìnaludecìeion has Been made but we were advised by a number of buiiding epeciaiists that there ís to be significant impact en the COSIS and timescale of the planned not te mentien possible health and safety issues for those working on the roof and the facades. *I We are in the process of appointing a project manager for the work who will advise us in more en these issues. and cemments can then be presented to the shareholders before the start of the buiiding programme.
Gne of the major issues on the Boards agenda is the forthcoming renovation works of Sussex
Heights. Based on ¿-1 conditìon report in September 2009 we reported to the AGM in November 2009 that ‘mere are mejor works required.
repair of current coatirtgj te e complete new creating or another exterior treatment ofthe façade). After we have received actua’. tenders from construction companies.
We are in process of appointing si qualified project manager who wiii provide us with the required teohnioei support to leed this project and wilt also put together the relevant tender specifications for the works oversee the project Whilst construction le proceeding. You wttl receive the relevant S20 notices for the project manager appointment in the next couple of weeks.
We expect the main part of the work to start in Spring next year, but seme ‘first aid’ repaire may have io be carried out this year. The works will be planned in order of priority Starting with the

*

roof, the South and South West facades which have to withstand the worst of the winter storms. and then the East and North façades.
We are at the best ways to finance the works and this is why we started a building fund as agreed by sharehoiders at the last AGM. We were rather shocked to hear that some ìeasehoioers seem to be under the impression that we are borrowing a million pounds or more to fund the works wiihout discussing this with the ieaseholders. Fïest assured this is not the case. Si-iBl_ wouici not borrow substanîìai sums of money without consulting with Ieaseholders.
We are looking et many oïher options including spreading the works over a number of years depending on priorities for repair.
Once we know costs for the project the Board will provide the various funding and project programming opîions to the shareholders.
With great sadness we have to announce that our Director and Chairman, Peut Miohaeìson has resigned from the Board of SHBL. We thank him for his tireless efforts for Sussex Heights requiring his aäentìon on an almost daily basis. We are very grateful and Wish him all the best for the future.
Si-IBL needs a minimum of 2 and a maximum of 7 Directors. We currently have 6 Directors sharing the responsibilities oi the Chair in this very busy time.
As, always if anyone is interested in joining the board and feels they have a skill that would be useful, please write to the Board / via our Company Secretary. We are Dartìcularly looking for Ieaseholdere with experience in accounting, surveying, law and health safety expertise or a background in property management and refurbishment ofcourse if you feel you have a skill that be useful to the Board but don’t want to become a Director, the Board would always we-ìcome your input as welì.
Communication with leaseholders and rsiqenis
Our aim has always been to have good communications with all resídnte and leasehoidere and lo keep everyone abreast oí key issues. Some Ieaeeholoere live in the building and Some live elsewhere in the UK or abroad. Some Ieaseholders have access to and prefer electronic communicaîion and some prefer Ieners sent inthe post.
There are sometimes issues which do not only effect ieasehelders, but everyone living in Sussex Heights including tenants. In those circumstances (i.e. if the water needs to be cut off for 2 hours to repaìr the pumps) noïicee in the lifîs are the moet appropriate; an effective and speedy method of communication.
in the last year, we updated our Memorandum and Articles of Association which now allows us to communicate with sharehoiders electronicaliy on official business issues too (i.e. send out company accounts, invïîations to AGMS, etc. by emaiì attachment rather ih:-an by mail). If you prefer to receive electronic communications, please let us know by sending attached form back to us as indicated.

ii ifeu wisiw te bringen issue to the attention ei the Board please send ai note, phone or email io Pam Barton, our company secretary and the issue will then be raised for ’et tntreltollowing Board meetingf These meetings are every 4-6 weeks. If the issue is rather urgent Pam wilt Contact the Board immediately to eltow us to respond to you sooner.
Öenerigfíanagáwîanì can be raised with the managing agents, such as service charge and gireundfent eayment issues, administration ei insurance eiaims, and every day issues regarding maintenance et the bleek. The Contact details for Austin Ftees are as feilowsz
C grlîactig Q_ may caregaking staff; We are very iucky to have David Nash our resìdenî caretaker, Alan Carter our Concierge I porter ‘eur cieaner as caretaking staiî providing such an excelient service, often beyond the cali of duw.
For ali day io day issues please speak to David and Afan who will be happy to help or if necessary they can forward any issues te the Managing Agents or, if appropriate, the Board.
The Desk I Concierge is open from Monday to Friday Bam to 6pm; Saturday from Bam to 12noon and the telephone number is 01273 205179
We hope you find this fetter useful and please do not hesitate to Contact us if there are any issues you want to raise (please aise ses aüached form).
The Board of Sussex Heights (Brighton) Ltd.