St Benedicts logo St Benedicts (Tooting) Management Company Limited
Finances Finances

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 fourther year collecting reserves for the maintenance period 2015-20, which owners voted at the 2014 Annual General Meeting 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.
  • The electrical safety check required by law every five years was carried out and remaining obsolete flat door entry systems were replaced in 2017 so those costs are no longer listed.
  • Insurance revaluation is recommended every three to five years and, as decided at the 2016 Annual General Meeting, will be carried out in 2019.
  • Flat walls will need to be checked again for cracking before the periodic repairs and decoration in 2020.
  • Flat roofs are increasingly suffering leaks, so will be checked during periodic work in 2020 when access is available. Subsequent repairs may be required so reserves will be used for this rather than communal floor sealing.
  • Communal electrical fittings are becoming life expired and will require replacement and upgrade to the latest standards, allowed for around 2025 when LED lamps are likely to need replacement.

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, average annual inflation rate for period allowed2%
Flat blocks external & internal repair & redecoration  Previous cost in 2015 excl VAT£128,925
Estate facilities repair & redecoration inc clock towerPrevious cost in 2015 allowing for greater degree of 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 5)Likely to be required around 40 years after installation, being collected for 2025£1,650£4,350
Flat block roof inspection during periodic work (note 6)Previous quotation£5,000
Communal floor sealing (note 7)Previous quotation £5,100£0
3-5 yearly insurance revaluationPrevious cost in 2014 excl VAT assuming done after 5 years£106£2,544
5-yearly electrical testingPrevious cost in 2018 excl VAT due in 2020-25 maintenance period 
Structural engineer check of wall crackingPrevious cost in 2012 excl VAT assuming done each maintenance period£1,987
Total of periodic maintenance exc VAT£9,917£155,699£13,881£141,818
Total of periodic maintenance inc VATVAT rate 20%£11,900£186,839£16,657£170,182
Common reserve funds
Contingency reserve (note 2)40% of periodic maintenance minimum £10,000£10,000£74,736£74,736
Additional reserve to cover arrearsNot available to fund work£276£2,998
Total to collect over period£22,176£94,391
LESS Current reservesAccounts at 30 June 2017, contributions and authorised expenditure 2017-18(£15,869)(£73,170)
Balance to collect over period(Block total apportioned by block below)£6,307£21,221£170,182
Common reserve funds collection
Collection per year2 years remaining in period of 5 years (note 1)£3,154£10,611
Common amount to collect this year (note 4)£0£0
Collection in budget 2018-19(Transferred to service charge page)£3,154£10,611

Flat Blocks Reserve Funds 2018-19

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
Air brick grilles to deter pest entry (note 8)(no vents)(done)(no vents)(done)£0
Specific block amounts to collect over period (note 4, 9)£0
LESS Current block reserves(£1,907)(£3,700)(£3,965)(£4,091)(£999)(£5,871)(£6,651)(£2,159)(£18,095)(£11,391)(£13,691)(£3,773)(£76,293)
Balance to collect over period£3,069£3,764£3,499£3,373£8,953£9,057£8,277£2,817£28,680£8,513£10,194£3,691£93,887
Flats reserve funds collection by block
Collection per year£1,535£1,882£1,750£1,687£4,477£4,529£4,139£1,409£14,340£4,257£5,097£1,846£46,948
Specific block amounts to collect this year (note 4)£0
Collection in budget 2018-19 (Transferred to service charge page)£1,535£1,882£1,750£1,687£4,477£4,529£4,139£1,409£14,340£4,257£5,097£1,846£46,948
Loaned to reserve fund at date of budget (note 2)Repaid£2,000Repaid£2,000
  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.
  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. The final loan will be repaid at 30 June 2018.
  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 work in this category is currently envisaged.
  6. Communal electrical fittings are becoming life expired and will require replacement and upgrade to the 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.
  7. Several flat block roof repairs have been required recently so allowance has been made to inspect all roofs during the perodic work when access is provided, while any repairs are not yet known and would be funded from the contingemcy reserve and collected in subsequent years.
  8. Because of other increased costs such as insurance and roof repairs, the Directors have decided not to carry out floor sealing this period to keep increases in charges to the minimum possible.
  9. The air brick grille trial at 2-24 Limetree Walk was inconclusive, so the trial was extended to 1-71 St Benedicts Close. Rather than impose this work and increase charges, owners in blocks will be consulted in late 2018 and offered it at extra cost in 2019-20.
  10. Roof repairs to 31-45 Church Lane and 1-71 St Benedicts Close have been allowed for in the estimate of current reserves so do not need to be included here.

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 and AGM Minutes

Previous budgets, reserve calculations and minutes of Annual General Meetings are available on the Documents page.

Valid HTML 4.01 Valid CSS Get Adobe Reader
© St Benedicts (Tooting) Management Company Limited - 4 June 2018