If you’ve recently purchased or are considering purchasing a leasehold property, you may be wondering what exactly this means. Leasehold ownership is common in flats and apartments, especially in the UK, and comes with unique responsibilities, rights, and terms that differ from owning a freehold property. Here, we break it all down for you.

What Is a Lease?

A lease is a legal agreement between the leaseholder (you) and the freeholder or landlord, granting you the right to occupy and use a property for a fixed period of time. Most residential leases start with terms ranging from 99 to 999 years. You don’t own the land the property stands on — that remains with the freeholder.

The lease will outline:

• The length of your lease term
• Your responsibilities as a leaseholder
• What’s included in your demised premises (more on that below)
• Any restrictions or rules (e.g. no pets, subletting clauses)
• The requirement to pay a service charge, ground rent, and possibly other fees

Right to Occupy

The lease gives you the legal right to occupy your home exclusively, as long as you meet the conditions of the lease. This right is time-limited — it ends when the lease expires unless it’s extended. It’s important to keep track of the number of years remaining on your lease, as it can impact your property’s value and mortgageability.

Understanding the Demised Premises

The demised premises refer to the part of the building you are responsible for and have exclusive rights to occupy. In a flat, this typically includes:

• The internal space of your apartment (walls, floors, ceilings)
• Fixtures and fittings inside your home
• Sometimes windows and internal doors

Everything outside the demised premises — such as communal hallways, roofs, and the building’s structure — is usually the responsibility of the freeholder or management company. Your lease should contain a plan or description clearly identifying what is demised and what is not.

What Is a Service Charge?

A service charge is a fee paid by leaseholders to cover the cost of maintaining and managing the building and communal areas. This can include:

• Cleaning and lighting of communal areas
• Lift maintenance
• Garden upkeep
• Building insurance
• Repairs to the roof, windows, or structure
• Managing agent fees

Service charges can vary year to year depending on anticipated costs and major works. You have the right to request a summary of how charges are spent and to challenge unreasonable costs.

Leaseholder Responsibilities

As a leaseholder, you’ll have several responsibilities, including:

• Paying your service charge and ground rent on time
• Keeping your property in good condition
• Following lease terms and restrictions
• Notifying the landlord of changes, such as subletting or significant alterations
• Obtaining permissions for works, where required
• Contributing to major works (as per the lease and Section 20 procedures)

Failing to comply with these responsibilities could result in legal action or even forfeiture of the lease in severe cases.

Repairs and Maintenance: Who Does What?

Understanding who is responsible for what can avoid confusion and disputes:

• You (the leaseholder) are generally responsible for internal repairs (e.g. plumbing within your flat, repainting, replacing carpet).
• The freeholder or managing agent handles external and structural repairs, communal area upkeep, and building-wide systems (e.g. roof repairs, intercoms, external doors).

Your lease will specify these responsibilities, so it’s essential to read it thoroughly.

Need Help Understanding Your Lease?

If you’re uncertain about any part of your lease, or your responsibilities as a leaseholder, it’s wise to speak to a solicitor or a property manager. Understanding your rights and duties early on can prevent issues down the line and make your leasehold living experience much smoother.

Summary Checklist for Leaseholders

• Review your lease carefully
• Understand what you’re paying for in your service charge
• Know the boundaries of your demised premises
• Keep track of your lease length
• Communicate with your managing agent or freeholder when needed
• Carry out your maintenance obligations
• Abide by restrictions (e.g. pets, alterations, subletting)

If you would like to enquire about our services, contact us via the button below and a member of our team will happily reach out to you.