Sinking Fund

[feeona123]

Hey

Can a management company just start a sinking fund?

Thanks

Fiona

[hollyhead]

Only if the lease provides for one to be collected.
Are you a leaseholder?
Or are you asking on behalf of a management company?

[andydd]

I suspect it may be possible to set one up with the agreement of ALL the parties concerned.

Andy

[leaseholdanswers]

I suspect it may be possible to set one up with the agreement of ALL the parties concerned.

Andy

In the event that there is a voluntary reserve find, it is advisable that this is done via a variation to the leases or at the least through a trust so that the purposes and control of the funds is crystal clear.

[feeona123]

Thanks for the info.

I'm a lease holder. We normally get any money left over credited to our next bill but this time is has been transferred into a sinking fund. I'm pretty sure its not in our lease and it has never happened before.

Not happy about it, its about £97 per flat. We are waiting for work to be done, but this work has been waiting to be done for around 2 years so not happy with the money going into the pot.

[JK0]

I would be happy about it. I wish my mother's estate management company had a sinking fund. They have had to sell off bits of the grounds to get the drive resurfaced, as nothing has been saved up for the last forty years.

[Tulula]

Maybe they've put it in the pot so that it can be spent on the items of work you want done this year? The alternative would be to give it back to you, and then charge you more - which would be silly if there is provision in the lease for surpluses to be carried over. If there isn't they shouldn't, but well...