Leasehold terms and definitions

The following terms and definitions can also be found in your copy of the Leaseholders' Handbook


The sale of the lease. The new leaseholder is the 'assignee'.


The block that includes your property

Common parts

The parts of the building or estate that can be used by all the residents, such as stairs, lifts, paths, communal gardens etc


This is a document that contains the rules governing how an organisation must operate e.g. a residents association


This is the process of asking for your opinions. Where possible we will consult you about anything we do that affects you


A covenant is a legally enforceable obligation or promise to do or not to do something

Cyclical Maintenance

Work that we do on a regular programme. It is included in your service charges


The process by which a group of leaseholders buy the freehold of their block


Your building, other buildings and land that share facilities such as private roads, play areas and communal properties situated within the estate

Estate Rateable Value

The total of all the rateable values of properties situated within the estate


This means that the lease is terminated and we as freeholder can lawfully take back the property after bailiffs have removed anyone in occupation. This course of action would only take place where there have been significant breaches of the covenants contained within your lease and following an order issued by the Leasehold Valuation Tribunal or a Court.


Absolute ownership of property and the land on which it stands

Ground Rent

This is the rent (a small fixed sum) paid annually to the landlord during the term of the lease. The sum is payable by the leaseholder to the freeholder in recognition of the legal contract between them. It is £10.00 each year.


Doing more work to a property than is required to satisfy an obligation to repair, or adding something that was not there before


This refers to the person or organisation that owns the freehold (or long term lease) of a property and grants a tenancy or lease to a tenant or leaseholder


The lease is a contract between the landlord and the leaseholder that sets out the obligations of both parties


An ownership of a property in a building comprising of other flats/maisonettes and subject to a payment of service charges and ground rent for a set period of time

Leasehold Valuation Tribunal

This is a body that makes decisions about service charge disputes between landlords and leaseholders. It is made up of a panel of people with experience of property disputes such as solicitors and surveyors


This means the same as leaseholder


This is a bank or building society that lent you money so that you can buy a property

Rateable Value

A property based sum, used originally as a former method of local taxation, but used in this context as a reasonable way of apportioning some service charges

Section 20 Process

This is the consultation process we must follow if we are intending to carry out works or enter into long-term contracts for services that will cost you more than a sum prescribed by legislation

Section 125 Notice

This is the offer notice which is provided when the lease is first sold. It contains itemised details of repairs and improvements and their cost. It limits your contribution to the cost of the works during the first five full financial years after the original sale of the lease

Section 146 Notice

Notice of breach of the lease and possible forfeiture

Service Charge

This is a payment made by the leaseholder to a landlord in return for services the freeholder provides


This is a process to get competitive prices for large contracts. We invite contractors to give their price or 'tender' for the works