BLOCK NEEDS HELP ON RESERVE FUNDS

Question

Dear Sir,
On obtaining the lease of my flat several years ago, I found myself the prime mover in acquiring the freehold of a block of 36 purpose-built flats, and this was successfully achieved. Each director of our freehold company has specific expertise in their area of responsibility and in consequence our maintenance charge, comparing ‘like with like’ is doubtless the lowest in the district whilst retaining efficient standards of service and cosmetic awareness.
As a result of necessary complete re-roofing of the building the appropriate levy was placed in respect of each flat which was discussed initially, therefore anticipated and accepted, by each shareholder/ leaseholder without any problem.
During the course of previous meetings involving directors and shareholders the question has been raised regarding the possibility of separate regular contribution to a reserve or ‘sinking’ fund legislating for unforeseen, uninsured or abnormal expenditure outside the usual provision for repairs, repainting, refurbishing and overall housekeeping.
However, a solicitor acquaintance with one of our ex-residents had estimated this process could lead to a determined challenge by any owner moving from the property who expected an equitable and proportionate return from the fund based upon his or her duration of occupancy.
I shall be very grateful if you are able to comment.
Davis May
Director, Wheaton Grange Flat Management Company Limited