Reserve Funds

Reserve Fund

The theory

Before discussing reserve funds, here are some extracts from the RICs Code 3rd edition:

The intention of a reserve fund is to spread the costs of ‘use and occupation’ as evenly as possible throughout the life of the lease to prevent penalising leaseholders who happen to be in occupation at a particular moment when major expenditure occurs…”

“It is, therefore, considered good practice to hold reserve funds where the leases permit….” Continue reading “Reserve Funds”