How to plan major works and a reserve fund

Why plan

Roofs, windows, lifts, external decoration and boilers all wear out on a predictable cycle. Blocks that plan for them spread the cost; blocks that do not face large one-off bills and arguments.

Steps

1. Condition survey by a building surveyor, listing each major element, its condition and expected life.
2. Planned maintenance plan covering at least ten years, with estimated costs and timing.
3. Reserve fund contributions, if the lease allows a reserve, set so the fund can meet the plan.
4. Review every year as part of the budget.

The lease decides

You can only collect a reserve if the lease allows it. Reserve money is trust money under section 42 of the 1987 Act and must be kept separate. If the lease has no reserve clause, works must be funded through the service charge in the year they happen, so early warning matters even more.

When the work comes

Major works almost always need section 20 consultation. Start early: the process takes at least three months before a contract can be signed.

Building safety works

Historical safety defects in buildings over 11 metres may be covered by the leaseholder protections in the Building Safety Act 2022 or government remediation funds. Check before charging leaseholders.