Leasehold law is filled with complex jargon. This A–Z glossary defines the key terms used by solicitors, surveyors, and landlords to help you understand your rights and your property.
The fair division of service charges or ground rent between a buyer and seller at the point of sale, calculated based on the number of days each owned the property.
A summary of the history of ownership of a property, showing the chain of "title deeds" before land was centrally registered.
Money that is owed and should have been paid earlier, such as unpaid service charges or ground rent.
Insurance covering the structure of the building. In leasehold flats, this is usually arranged by the freeholder and charged back to leaseholders.
Failure to follow the rules (covenants) set out in the lease agreement, which can lead to legal action or forfeiture.
The interest rate used by surveyors to calculate the present value of the future ground rent income a landlord will receive.
An alternative to leasehold where occupants own their flat indefinitely and belong to a community association that manages the building.
The person or entity with a long enough interest in the property to legally grant a lease extension (usually the freeholder).
A binding rule or promise contained within a lease, such as a requirement to pay rent or a ban on wooden flooring.
A legal document used to change the terms of an existing lease, such as correcting an error or updating a ground rent clause.
The rate used in valuations to represent the fact that the landlord has to wait until the end of the lease to get their property back (often 5% for flats).
The specific boundaries of the property you own under the lease, usually including the internal space but excluding the main structure and roof.
The loss in the value of the landlord’s interest in the property caused by the lease being extended.
The legal right for leaseholders to act together to buy the freehold of their building from the landlord.
A valuation term used in collective enfranchisement to describe the value of a group of flats sold as a single lot.
An independent body that settles disputes between leaseholders and landlords regarding service charges, lease extensions, and management.
The landlord’s legal right to end a lease and repossess the property due to a serious breach of contract by the leaseholder.
The person or company that owns the land and the building outright and indefinitely.
An annual fee paid by the leaseholder to the freeholder for the right to occupy the land.
When a seller accepts a higher offer from a new buyer after already accepting an offer from someone else.
A lease granted by the freeholder to a middle-party (the Head Lessee), who then grants "under-leases" to the individual flat owners.
Negotiating a lease extension directly with the landlord outside of the statutory legal process. Can be faster but offers fewer protections.
A lease that sits between the freeholder and the actual occupier of the flat.
The official government database that records the ownership of land and property in England and Wales.
The "Leasehold Property Enquiries" form completed by a landlord or managing agent during a sale to provide info on service charges and works.
A professional company hired by the landlord or a Right to Manage company to handle the day-to-day running of the building.
The extra profit created by extending a lease. If the lease has under 80 years left, the leaseholder must pay 50% of this "profit" to the landlord.
A rent of zero financial value. It satisfies the legal requirement for a contract to have an exchange of value without requiring actual payment.
A legal covenant giving the leaseholder the right to live in the property without unnecessary interference from the landlord.
A percentage used in valuations to compare the value of a leasehold property to its freehold equivalent.
A pot of money collected from leaseholders over several years to pay for large, infrequent costs like roof repairs (also called a Sinking Fund).
A legal right allowing leaseholders to take over the management of their building from the landlord without buying the freehold.
A mandatory consultation process that landlords must follow before carrying out works costing any one leaseholder more than £250.
The official legal notice served by a leaseholder to the landlord to start the formal (statutory) lease extension process.
Payments made by leaseholders to cover the cost of maintaining, repairing, and insuring the building.
A lease extension carried out under the 1993 Act, giving the leaseholder an extra 90 years and reducing ground rent to zero.
The number of years for which a lease is granted (e.g., a 125-year term).
A lease involving three parties: the landlord, the management company, and the leaseholder.
A court order used to extend a lease or buy a freehold when the landlord is "missing" or cannot be contacted.
The annual return on an investment, expressed as a percentage. Used by surveyors to value ground rent income.
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