The introduction of a maintenance fund will assist homeowners in helping to preserve the condition of their property and to allow them to budget and plan for adequate repair and maintenance over a set period.
The introduction of a cyclical maintenance fund, sometimes referred to as a sinking fund, will allow homeowners to accumulate funds over a period of time therefore providing levels of funding to consider repair works on an ongoing basis without a one-off large expenditure. Cyclical maintenance funds can be administered through customers’ common charges accounts with homeowners’ contributions being held in an interest bearing account in the group’s name. These funds will be kept entirely separate from the common float fund used for day to day costs.
Whilst many homeowners in modern buildings contribute to such a fund, homeowners in many older properties including traditional tenements and developments where maintenance solely pertains to common grounds do not. It is however our opinion and generally recognised throughout the industry that this should not deter homeowners from implementing a cyclical maintenance fund.
A cyclical maintenance fund can assist homeowners with communal repair works including:
- Internal and external redecoration
- Programmed roof and building repairs
- Extraordinary major repair works
- Building/ground maintenance improvement work
- Regular building surveys
All interest from any funds held remains with the homeowners. Payment into a maintenance fund is for the long term benefit of the property and therefore all contributions remain with the fund and in the event that you sell your property the incoming purchaser will have a similar obligation to the fund.
Should any of our customers wish to discuss the introduction of a cyclical maintenance fund in greater detail, then we would be happy to meet with you to answer any enquiries you may have. Should this be of interest please get in touch with us here.