Sinking fund

This is part of the Service Charge that is invested in order to eventually pay for major work, usually to a block of flats, such as a roof replacement.

Remember that the Sinking Fund is based on an estimate of the likely cost of such major repairs and it may or may not be sufficient to cover them.

If it is not sufficient, then the leaseholders in the block will probably have to contribute more to the repairs.

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