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What does 'Sink Fund' mean?

Sink Fund

Most leasehold and share of freehold properties have a sink fund. This is an amount, kept in a bank account, to pay for major expenses such as a new roof or new windows. It is not meant to be used for day to day purchases and maintenance. Note that just because there is a sink fund, this does not mean it contains adequate funds and it may have to be topped up by the leaseholders should urgent and major repairs need to be carried out on the building.

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"... methods for financing a Share of Freehold property are: Pay a specific amount every year for day to day maintenance and bills. Any payments purposefully over this are called the sink fund and are savings for the unexpected. Pay for things as they come along. Hire a managing agent to do..."

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Author of How to Really Buy a Property

I'm Tim Hill, Author of How to Really Buy a Property. I'm a property buyer, seller, landlord, tenant and I've been an agent in hundreds of transactions. I own a property portfolio across Europe but that doesn't mean I think you should to!

This book is my collective knowledge and experience that I have gained working within the property market of England and Wales for over a decade. I've written it so that you can benefit from what I have learnt whether you are a first time buyer or a budding buy-to-let investor.

There are no gimmicks here and no get rich quick schemes - just practical no nonsense advice so you can buy the property you want at the best price with the least stress.

Download the Free Preview copy right now. I won't be asking for your email so I can bombard your inbox with 'special offers' and 'discounts' because I know most people who read the Free Preview buy the full copy. See for yourself!