Leasehold risk checklist
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Reserve Fund and Sinking Fund Check
A reserve balance is only useful when compared with planned works, the lease, building condition and contribution history.
Built for England & Wales leasehold transactions.
Legal caution
This page is informational only, not legal advice. It does not tell you whether to exchange, proceed, renegotiate, or withdraw. Verify the issue against source documents and obtain professional advice before relying on it for legal, financial, or transactional decisions.
Checklist
- Find the latest reserve or sinking fund balance and the date stated.
- Check whether the lease permits reserve collection and use.
- Compare the balance with known roof, lift, facade, fire-safety or cyclical works.
- Review annual reserve contributions and any transfers out.
- Ask whether reserve money is held separately for leaseholders.
Warning signals
- Reserve mentioned but balance missing.
- Major works likely but reserve use unclear.
- Low reserve for an older or high-maintenance building.
- No long-term maintenance plan or survey.
Questions to ask
- What is the latest reserve/sinking fund balance?
- What works is the fund intended to cover?
- Will the reserve cover planned works or will leaseholders face extra demands?
- Does the lease permit the reserve contribution currently collected?
Official context to cross-check
These external LEASE pages are useful public context for the issue category. LeaseLens is independent, does not copy official guidance, and does not replace legal advice.
Apply this to a live pack
This page is generic guidance. Use LeaseLens when you want pack-specific Quick Findings and the option to unlock the Full Report.
Related guides
- Reserve Fund Questions to Ask
Questions to ask about leasehold reserve or sinking funds, planned works and future one-off demands.
- Interpreting Reserve Fund Balances
How to judge whether a leasehold reserve or sinking fund balance is meaningful against planned works and building age.
- What If Leasehold Pack Documents Are Missing?
What to ask when accounts, budgets, insurance, lease clauses, Section 20 papers or building-safety documents are missing from a leasehold pack.
Related topics
- Service charge and reserve fund
Understand annual charge pressure, reserve fund weakness, balancing charges, and why service charge history matters before exchange.