advice please regarding selling a flat with a sinking fund in place?

CB1979_2

hi guys if i decided to sell my flat and at the time there was £8k in a sinking fund meaning my share was £1k.

if my flat was valued at £180k would you also expect to add on the £1k as well?

I'm assuming when you sell a flat you don't withdraw the £1k, so it remains in the fund.

this is purely hypothetical

cheers

silvercar

Normally a sinking fund is established to ensure there is money available for planned works.

if you can ask more for the flat because there is money in the fund then well done. in practice, when a surveyor says X, Y or Z needs doing, you point to the sinking fund and say that money has already been set aside for that.

A sinking fund is used to even out the maintenance costs of the block, instead of major expense one year you contribute to the fund in years when no work is needed so it is there to fall back on for a major expenditure.

CB1979_2

yeah cheers I just wasn't sure with regards to what happens if there was excess monies in there, basically if we all put in £50 a month it will bring up £4800 a year, our communal elec bill is about £50 per annum, so as you can imagine there will be quite a massive fund left each year if there are no major works (which unfortunately I know there will be, but no fund in place at the moment!)

just trying to forward plan a bit as we have some important decisions to come up with in the next few months with regards to our place.

hazeyj

I would never advise taking money from a sinking fund and its not usual for you to take the money with you when you sell. A good sinking fund wouldnt increase the price price of the flat really but would satisfy a pedantic solicitor.

Woby_Tide

on the reverse side if you purchased a flat and were told it would cost £1k more as the seller was withdrawing their portion of the sinking fund what do you think most people would say?