A reserve fund is a sum of money that is kept aside in order to pay for any major repairs to blocks of apartments/groups of properties. This fund is also used for costs of replacing certain large items including, roofs, windows, lifts etc. By setting up a reserve fund, it guarantees that all residents pay towards the cost of maintaining the building in the long-term.
Paying into your reserve fund helps to maintain the value of your property. It also prevents Axiom from asking all residents to pay a large one-off sum if major works were ever required.
As the freeholder of the property, Axiom will make the decision as to what works are carried out. However, under the service charge regulations, Axiom is obligated to consult with all leaseholders when expected contributions equate to more than £250. In this circumstance Axiom will contact you and welcome your comments and observations.
Please note that if you choose to sell your property, no credit that may be on the account at the time will be refunded to you. This is because Axiom must ensure that money is available should major repairs be needed at any point. However, properties with a healthy balance in their reserve fund are likely to be sold for a higher amount.