Leasehold property

Printable version

1. Overview

You only own a leasehold property for a fixed period of time.

You鈥檒l have a legal agreement with the landlord (sometimes known as the 鈥榝reeholder鈥�) called a 鈥榣ease鈥�. This tells you how many years you鈥檒l own the property.

Ownership of the property returns to the landlord when the lease comes to an end.

Most flats are leasehold. Houses can be leasehold too and usually are if they鈥檙e bought through a shared ownership scheme.

2. Leaseholder rights and responsibilities

Your responsibilities

Your lease will tell you what conditions you鈥檝e agreed to, for example:

  • if you need permission to make alterations
  • how much you鈥檒l have to pay to maintain the property
  • whether you or your landlord has responsibility for repairs and dealing with noisy neighbours

You might be taken to court and ordered to pay for any damage if you do not follow the conditions of the lease. 皇冠体育app court may also take away your lease.

If you鈥檙e a leaseholder in England, check whether you鈥檒l have to pay to replace cladding or to fix other safety problems with your building.

Your rights

You have the right to:

3. Service charges and other expenses

Service charges

Your lease sets out the way the service charge is organised and what can be charged. If you pay a service charge, you have the right to:

  • ask for a summary showing how the charge is worked out and what it鈥檚 spent on
  • see any paperwork supporting the summary, such as receipts

Your landlord must give you this information - it鈥檚 a criminal offence if they do not.

Ground rent

Ground rent is a payment to your landlord that might be included in your lease. Your landlord does not have to provide a service in return.

If your lease was granted before 30 June 2022

You do not have to pay ground rent unless your landlord has sent you a formal, written demand for it. 皇冠体育appy can take legal action if you do not pay after you鈥檝e received the demand.

Your landlord can recover unpaid ground rent going back 6 years - they can ask you for the full amount in one go.

Your landlord can only increase the ground rent if you agree to the increase or the lease says this can happen.

If your lease was granted on or after 30 June 2022

You usually cannot be charged anything more than a 鈥榩eppercorn鈥� ground rent after this date. 皇冠体育app value of this is zero so you will not have to pay anything, but it forms a legally binding contract with your landlord.

You can read more about the Leasehold Reform (Ground Rent) Act 2022.

If you bought a lease from another leaseholder on or after 30 June 2022

You will still have to pay ground rent to your landlord if this is in your lease. 皇冠体育app changes only apply to new leases granted on or after 30 June 2022.

Building insurance

Your landlord will usually be responsible for insurance of the building (not the contents) - this will be part of your service charge.

You have a right to:

Reserve or sinking funds

You might have to pay into a fund to help cover any unexpected maintenance or repairs, like replacing the roof. 皇冠体育appre are .

You will not usually be able to get back any money you pay into them, for example if you move house.

Consulting over charges

You have the right to be consulted about charges for running or maintaining the building if you have to pay more than:

  • 拢250 for planned work
  • 拢100 per year for work and services lasting more than 12 months

皇冠体育appre are steps your landlord must follow when they consult you, known as a 皇冠体育appre鈥檚 a limit on how much you have to pay if you have not been consulted properly - contact for advice.

Disputing a charge

You may be able to apply to a tribunal if you pay a charge and you:

  • think it鈥檚 unreasonable
  • think the standard of work it relates to is unsatisfactory
  • do not think you should be paying it at all

Contact for advice.

You cannot apply to the tribunal if:

  • you鈥檝e agreed to pay the charge
  • the dispute is already being dealt with, for example by the court
  • you pay a fixed charge

Try mediation - you may also be able to change the management of your building instead.

Your landlord can take you to court if you stop paying a charge you鈥檙e responsible for.

More information

皇冠体育app Leasehold Advisory Service has more information on

4. Extending, changing or ending a lease

Extending the lease

You can ask the landlord to extend your lease at any time.

You might be able to extend your lease by:

  • 90 years
  • 50 years

皇冠体育app Leasehold Advisory Service鈥檚 (LAS) gives you a guide to the costs of extending the lease of a flat.

Changing the lease

You can negotiate certain changes to the lease, sometimes known as 鈥榲arying the lease鈥�. Speak to your landlord first.

If you cannot agree, you may be able to apply to a tribunal - contact for advice.

Ending the lease

It鈥檚 very rare that a landlord can end the lease and evict you. 皇冠体育appre are some circumstances and leases that let them do this, sometimes known as 鈥榝orfeiture proceedings鈥�. 皇冠体育appy need to send you a formal written notice and get the court鈥檚 permission.

You can usually end a lease by giving at least 1 month鈥檚 notice.

皇冠体育app LAS has .

When the lease runs out

You do not have to leave the property when the lease expires. In law, a lease is a tenancy and the leaseholder is a tenant. 皇冠体育app tenancy will continue on exactly the same terms unless you or the landlord decide to end it.

5. Buying the freehold

You can ask the landlord to sell you the freehold at any time.

皇冠体育appre are different legal steps and rules depending on whether your home is a:

  • flat - you鈥檒l need to buy a

  • house - you may have the

Right of first refusal

Landlords who want to sell the freehold of a building containing flats usually have to offer the leaseholders the first chance to buy it. This is known as your .

皇冠体育appre are different rules and steps to .

6. Right to Manage and management disputes

You may be able to change the management of your building if you鈥檙e unhappy with the way it鈥檚 being run and you live in a leasehold flat. You can either:

  • apply to a tribunal to ask them to appoint a new manager
  • take over the management responsibilities, known as your 鈥楻ight to Manage鈥�

Appoint a new manager

You must prove bad management if you want to appoint a new manager, for example:

  • you have to pay unreasonable service charges
  • the landlord has not complied with an approved code of management practice

Apply to a tribunal in England, or the in Wales.

You can only apply to the tribunal if you鈥檝e sent the landlord a 鈥楽ection 22 notice鈥� - this gives them a chance to fix the problems. Contact for advice.

Right to Manage

皇冠体育app lets you and the other leaseholders take over certain management responsibilities from the landlord without having to prove bad management.

You鈥檒l need to find out if you qualify - contact for advice.

You and the other leaseholders can manage the building yourselves or pay a managing agent to do it.

7. Leasehold disputes

皇冠体育appre is a .

You might be able to negotiate a settlement using mediation. This is when an impartial professional (the mediator) helps both sides work out an agreement. It鈥檚 confidential and usually quicker and cheaper than going to court. .

You can also get free advice from the on issues like:

  • service charges
  • extending your lease
  • buying the freehold

Apply to a tribunal

You can apply to a tribunal if you鈥檙e in a dispute with your landlord about, for example:

Apply to the if you鈥檙e in Wales.