Q. What is the Reserve Fund and Redecoration Fund?
Answer:
Hobdens are responsible for the long term maintenance of the property including redecoration of the exterior and internal communal areas, future major repairs and renewals. Therefore, usually included in the Service Charge, there are amounts set aside in the form of a Redecoration Fund and/or Reserve Fund.
Each year a contribution is made into these reserve funds with the intention that they build up over the years so that when works are required, there is a fund available to go towards the costs, reducing any additional one off payments that may be required to make up the shortfall.
Reserve funds go towards ensuring that the development will be looked after for its full life, thus ensuring that property values, saleability and appearance are maintained
RETURN TO FAQ’sOther Service Charge & Ground Rent questions
- What is a Service Charge?
- What are my rights?
- Why is my Service Charge higher than my neighbour or the building down the road?
- What do I do if the wrong name is on my service charge invoices?
- What has happened to the Service Charge that I paid to the developer when I bought my home?
- My property is empty, why do I have to pay?
- What is the Management Fee?
- Why do I have to pay Service Charge when I live in a Freehold House?
- How do I know what Hobdens is spending my Service Charge on?
- Why has my Service Charge increased?
- How can I pay my Service Charge or Ground Rent?
- Why do I have to pay Ground Rent?
- What is the Service Charge?