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Reserve Funds



Service Charges


Reserve Funds


Reserve Funds for 2015-20


Part of the service charges is put aside into reserve funds for periodic repairs, re-decoration and other work over more than one year as provided in legal agreements for properties on the Estate. This spreads the cost and helps to avoid large fluctuations of charges between years. There are reserve funds for the Estate, to which both house and flat owners contribute, and reserve funds for common flats expenditure and for each flat block, to which only flat owners contribute. Specific points for this period and year are:

  • This is the third year collecting reserves for the maintenance period 2015-20, which owners voted at the 2014 Annual General Meeting (PDF, 33kb) to extend from four to five years to spread costs.
  • Now the Estate is over 30 years old, more repairs and maintenance are needed and sufficient contingency for unexpected work has to be set aside to be able to loan to individual blocks and reduce fluctuations in charges.
  • Flat communal area bulkhead lights have been rewired and had LED lamps fitted, which will reduce electricity consumption. Suitable LED lamps for the strip light fittings outside flats are not available, so these will need to remain as fluorescent lamps.
  • The remaining obsolete flat door entry systems will be replaced this year in 2017. Money is already being collected in the flat reserves for this.
  • The electrical safety check required by law every five years will be carried out this year in 2017.
  • Insurance revaluation is recommended every three to five years and, as decided at the 2016 AGM, will be carried out in 2019.
  • Flat walls will need to be checked again for cracking before the periodic repairs and decoration in 2020.
  • The electrician who fitted LED lamps in flat hallways and rewired the fittings reported that they were reaching the end of their life and the health & safety inspector advises that standards now are higher than when the flats were built, requiring safety lighting and more electrical protection. An initial estimate to carry out this work around 2025 has been included, as the LED lamps are expected to last until then.

Owners selling properties should include accumulated reserves in the completion payment calculation.

Common Reserve Funds 2017-18

DescriptionBasisEstate ReserveFlat Reserves:CommonBlock
Periodic maintenance and other costsExc VAT and allowing for average annual inflation rate for period of 2%
Blocks of flats external & internal repair & redecoration  Previous cost£128,925
Estate facilities redecoration inc clock towerPrevious cost allowing for greater repair as deteriorates£4,303
Surveyor and CDM fees10%£430£12,893
Paving, wall and fencing repair & replacement£3,428
Communal electrical upgrade & replacement (note 9)Likely to be required around 40 years after installation, being collected for 2025£2,166£5,709
Communal floor sealingPrevious quotation£5,100
3-5 yearly insurance revaluationPrevious cost in 2014 assuming after 5 years£106£2,544
5-yearly electrical testingPrevious cost in 2012 allowing for low quote£3,478
Structural engineer check of wallsPrevious cost in 2012 assuming after 5 years£1,987
Total of periodic maintenance exc VAT£10,433£160,636£18,818£141,818
Total of periodic maintenance inc VATVAT rate 20%£12,520£192,764£22,582£170,182
Common reserve funds
Contingency reserve (note 2)40% of periodic maintenance minimum £10,000£10,000£77,106£77,106
Additional contingency reserve to cover arrears  Not available to fund work£0£5,973
Total to collect over period£22,520£105,661
LESS Current reservesAccounts at 30 June 2015 and authorised expenditure(£15,282)(£62,495)
Balance to collect over period(Block total apportioned by block below)£7,238£43,166£170,182
Common reserve funds collection
Collection per year3 years remaining in period of 5 years (note 1)£2,413£14,389
Common amount to collect this year (note 4)£0£0
Collection in budget 2017-18(Transferred to service charge page)£2,413£14,389

Flat Blocks Reserve Funds 2017-18

DescriptionBlock ABlock BBlock CBlock DBlock EBlock FBlock GBlock HBlock IBlock JBlock KBlock LTotal
Addresses (note 0)7-10 AD21-26 AD31-36 AD17-27 CW31-45 CL1-23 LW2-24 LW130-133 RL1-71 SC73-103 SC105-135 SC18-28 SC
Number of flats46668121243616166132
Proportion (note 3)  2.923976%  4.385964%  4.385964%  4.385964%  5.847952%  8.771928%  8.771928%  2.923976% 27.485376% 11.695904% 14.035088%  4.385964% 99.999984%
Flats reserve funds by block
Common balance to collect over period£4,976£7,464£7,464£7,464£9,952£14,928£14,928£4,976£46,775£19,904£23,885£7,464£170,180
Entryphone replacement (note 5)£715(done)£895(done)£715£1,790£1,790(done)(done)(done)(done)£895£6,800
Air brick grilles to deter pest entry (note 6)(no vents)(done)(no vents)£720£720
Specific block amounts to collect over period (note 7)£0
LESS Current block reserves(£1,146)(£1,819)(£3,168)(£2,405)£781(£6,738)(£4,415)£445(£14,630)(£7,135)(£8,592)(£2,879)(£51,701)
Balance to collect over period£4,545£5,645£5,191£5,059£11,448£9,980£12,303£5,421£32,865£12,769£15,293£5,480£125,999
Flats reserve funds collection by block
Collection per year£1,515£1,882£1,730£1,686£3,816£3,327£4,101£1,807£10,955£4,256£5,098£1,827£42,000
Specific block amounts to collect this year (note 8)£0
Collection in budget 2017-18 (Transferred to service charge page)£1,515£1,882£1,730£1,686£3,816£3,327£4,101£1,807£10,955£4,256£5,098£1,827£42,000
Loaned to reserve fund at date of budget (note 2)£1,000£1,000£1,500£3,500
  1. Key to addresses: AD = Abbey Drive, CW = Carlisle Way, CL = Church Lane, LW = Limetree Walk, RL = Rectory Lane, SC = St Benedicts Close
  2. The reserve period has been extended from 4 years to 5 years to spread costs and limit service charges, as decided by owners at the 2014 Annual General Meeting (PDF, 33kb).
  3. The flats contingency reserve is being collected into the old single flats reserve to allow it easily to be loaned to individual block reserves if required, as authorised by owners at the 2011 Annual General Meeting (PDF, 30kb).
  4. The proportions equal those in which blocks contributed to the old flats reserve and match estimated common expenditure. They vary by the numbers of 1-bedroom and 2-bedroom flats in blocks.
  5. No other work for all blocks in the next year is currently envisaged.
  6. All entryphones that have not already been replaced are life expired, cannot easily be repaired and will be replaced in the 5-year period, cost based on work in 2016, sums allocated are reduced as work is done.
  7. The survey following the air brick grille trial at 2-24 Limetree Walk was inconclusive, so it is proposed to extend the trial to 1-71 St Benedicts Close, which also has reported problems with mice.
  8. Sewer repair at 2-24 Limetree Walk and roof repairs at 130-133 Rectory Lane and 31-45 Church Lane have been allowed for in estimate of current reserves so costs will be colected over the period.
  9. No work for specific blocks requiring payment in the next year is currently envisaged.
  10. Communal electrical fittings are becoming life expired and will require replacement and upgrade to latest standards, allowed for around 2025 when LED lamps are likely to need replacement. Most costs will be for flat blocks, but costs for security lighting are for the whole Estate.

Principles of Reserve Funds

The principles on which the reserve funds are based are illustrated in the following diagram: Diagram illustrating reserve funds


Previous Budgets

Previous budgets and reserve calculations can be found on the Documents page.

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© St Benedicts (Tooting) Management Company Limited - 11 June 2017