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Reserve Fund Questions to Ask
Questions to ask about leasehold reserve or sinking funds, planned works and future one-off demands.
Updated 21 May 2026 · 2 minute read
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Related topics
- Service charge and reserve fund
Understand annual charge pressure, reserve fund weakness, balancing charges, and why service charge history matters before exchange.
Who this is for
Buyers and professionals who need to know whether reserves reduce or fail to reduce major works exposure.
Why it matters
LEASE explains that reserve funds are built up through service charges to help spread expensive works over time, but not every building has one and the lease must allow collection. The question is whether the fund is permitted, held correctly, sufficient and earmarked.
What to check first
- Ask whether the lease allows reserve or sinking fund contributions.
- Ask for the latest balance and date.
- Ask what works the fund is intended to cover.
- Compare balance against known or likely major works.
- Ask whether surplus, interest and future contributions are explained.
Red flags in the pack
- Reserve exists but balance not stated.
- Major works known but reserve use not explained.
- Lease authority for reserve collection unclear.
- Fund appears too low for the building age or known works.
- No long-term maintenance plan.
Evidence to gather
- Reserve fund statement or account note.
- Service charge budget showing reserve contribution.
- Lease clause permitting reserve collection.
- Maintenance plan, survey or works estimate.
- Section 20 and major works correspondence.
Questions to send
- What is the current reserve/sinking fund balance and where is it held?
- What planned works is it intended to fund?
- Does the lease permit the current contribution?
- Will leaseholders face any additional demand after applying the reserve?
How LeaseLens uses this
LeaseLens flags reserve mentions and asks whether the balance actually changes the major-works risk.
Official context
Caution
This is an informational screening guide only. It is not legal advice, does not interpret your lease for you, and does not replace advice from a qualified conveyancer or solicitor.
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Related guides
- Interpreting Reserve Fund Balances
How to judge whether a leasehold reserve or sinking fund balance is meaningful against planned works and building age.
- Major Works Timeline Questions
Questions to establish timing, cost and liability where major works are planned or in consultation.
- Admin Fee Caps and Variation Questions
How to challenge vague or variable leasehold administration fees and ask for the documents behind them.
Related checklists
- Reserve Fund and Sinking Fund Check
Check reserve-fund balance, contribution authority, planned works coverage and whether future one-off demands are still likely.
- Section 20 Major Works Check
Spot Section 20 and major-works exposure, then request the cost, timing, reserve and apportionment evidence missing from the pack.
- Leasehold Service Charge Check
Check service charge history, budget variance, reserve-fund strength and missing evidence before exchange.