What is a reserve or contingency fund and why do I have to pay into it?

This is money collected every year within the service charge to build up funds that can contribute towards the cost of unexpected expenditure or any future planned major works, such as large scale internal and external redecorations, access way repairs or replacing communal carpeting.  

The reserve fund accumulates over time and is held in a trust account in addition to the service charge money, meaning it can only be spent on your development.  

The service charge estimate sets out how much is being collected in the year, and the year-end accounts include a statement of the overall amount available.