A sinking fund is a pot of money that's used to pay for more expensive work to shared areas of your home.
You may have to pay into a sinking fund if it's in your lease. The sinking fund is used to pay for more expensive work to shared parts of your home. For example, replacing the building's roof or replacing a lift.
By having a sinking fund we can build up a reserve and spread the cost of repairs between people living there now and those who lived there in the past. It also prevents you from having to pay large and unexpected bills.
What you pay into the sinking fund is usually included in your service charge statement.