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