A sinking fund is a sum of money set up to build up an amount to pay for major work, usually  to a block of flats such as replacing a roof or door-entry system. This  means that when major work is carried out, the bill will not be as large because of the money collected over a period of time from different leaseholders. Your lease will say if you have to pay towards this fund. If you do, the amount you have to pay will be shown in your yearly service charge statement.
 
When new homes are built, we work out how much certain items would cost to replace, and how long they will last. This means that we know how much to collect each year, so we should have enough to cover some or all of the costs in the future. We aim to review all the sinking funds around every five years to make sure leaseholders are not paying too much or too little.
 
If you are selling your home, you should tell your solicitor that you contribute to a sinking fund so the buyers know that there is money built up to cover some or all of the cost of major one-off work. This may make your home more attractive to buyers. However, all contributions you pay into the fund will stay in the fund if you decide to sell.