If a reserve fund is not set up, payment for any required major works are due from a homeowner on completion of the works. This can mean that homeowners will receive large bills that they need to pay. A reserve fund will help to avoid the need for large additional payments when major works are required.
Some examples of work the reserve fund may cover are refurbishments or replacement of:
- roofs, windows, doors (in communal areas)
- lifts
- pumping stations
- internal and external decoration
- flooring
- central heating systems
- park, paths and roads
- specialist / general equipment (in communal areas)
