Repairs are either the leaseholder's responsibility (generally items within one's own home, such as internal decorations, electrical fittings etc) which we do not get involved in, or they are our responsibility (such as communal items and external decorations) and are paid for by leaseholders contributing through their monthly service charge.
Major repairs are large-scale repairs or renewals that we plan to do over the lifetime of the building. Examples include roof or window replacements. These are funded in one of two ways:
- As a contribution in the monthly service charge
- As a "terminal deduction", whereby the contribution is made only when a property is sold and that contribution is based on a percentage of the selling price multiplied by the number of years the person has been resident
- All contributions for major repairs are held in a separate "special reserve fund" and attract interest on the balance.