Summary
Maintenance planning protects a buyer from treating repairs as surprises. Every property has age related replacement cycles, including roofs, boilers, windows, electrics, plumbing, decorating, appliances, drainage, fencing and external surfaces. A survey can identify immediate defects, likely near term repairs and items that need specialist follow up.
A sinking fund is a monthly pot set aside for future repairs and replacements. It should not be a generic guess. It should be based on the property age, condition, survey findings, tenure and whether the household is responsible for the building structure. Freehold houses usually need a larger direct maintenance fund than leasehold flats where some external works are handled through the service charge, although leaseholders can still face major works bills.
Definition
Maintenance planning is the process of estimating future repair and replacement costs and saving a monthly sinking fund to meet them. The sinking fund should reflect survey findings, property age, component condition, ownership responsibilities and the likelihood of major works.