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Leases are usually for between 99 and 999 years. You are allowed to live in the property for the term of the lease in return for paying ground rent.
You can be evicted if you break the terms of the lease but this is quite rare. You can sell the lease on at any time. You may be able to buy the lease from your freeholder.
I don't know if I have a leasehold property
Contact the solicitor who carried out the legal work when you purchased your house. S/he will be able to tell you whether you have a leasehold or freehold property.
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How does leasehold work?
When you buy a leasehold property, you buy the right to live in your home for a certain amount of time. The length of the lease varies, but is usually between 99 and 999 years. The freeholder owns the land on which the building is situated, and can collect ground rent and service charges.
The freeholder could be:
- an individual
- a private company
- a housing association
All leaseholders have the right to know the name and address of their freeholder. You may need this information if you want to take action against your freeholder. The freeholder can sell the freehold if s/he wants to.
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What is the lease?
The lease is the legal contract between you and the freeholder. The lease outlines the rights and responsibilities you and the freeholder have. It is usually long and written in legal language. Leases normally include information about:
- who is responsible for repairs
- ground rent and service charges
- who must insure the building
- whether you need the freeholder's permission if you want to rent out your home or make alterations
This information may be useful if you have a disagreement with the freeholder. Every lease is different, so it's important to check what it says. If you don't have a copy, you can get one from the solicitor who did the legal work when you bought your home or from the freeholder.
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Is it important to check the lease before buying?
It is very important to check the terms of the lease before you buy. If there is a problem with the lease it should be sorted out before you exchange contracts. This may delay the sale but should be easier than dealing with the problems after you buy.
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Ground rent
Most leaseholders have to pay ground rent to the freeholder as one of the conditions of their lease. Ground rent is a fee you have to pay to the freeholder as a condition of your lease. It is usually a small amount (such as £50 or £100 a year).
There are usually rules about:
- how it is paid,
- when it can be increased,
- what could happen if you don't pay it.
You may also have to pay a service charge to cover the cost of maintaining your building if you have bought a leasehold flat.
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Buying the freehold
You may be able to buy the freehold title to your property. You will own your property outright and you won't have to pay ground rent. You usually won't be able to but the freehold if you live in a flat.
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What if my lease runs out?
If your lease has already run out, you may be able to negotiate a new one but this is not guaranteed. It's better to do this if you can. If it's not possible, you can probably stay in your home as a tenant. You will have to pay rent to your landlord. Get advice, if you lease has ended or is about to run out.
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Can my freeholder evict me?
Your freeholder can normally only evict you if all of the following points are met:
- you break one of the conditions of your lease,
- your lease says that your lease can be ended,
- the freeholder follows the correct procedure.
The freeholder has to give you formal written notice and get a court order before you can be evicted. Even if s/he can prove you broke your lease, you can ask the court to stop the eviction. It is rare to be evicted because you break your lease. Back to top
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