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.
Search Results for 'sink fund' in How to Really Buy a Property
Chapter 14:
Viewing Properties and Making Offers
"... 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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