A leasehold is when a property is bought but the land on which the property is built on is not. This means that the buyer owns the property (leaseholder), but not the land. Essentially, the person who owns the land (the freeholder) act as a landlord whilst the property is occupied.
The duration of the leasehold will depend on the length of the lease. This could be months, years, or decades, even expanding into centuries.
When a lease expires, the leasehold ownership of the property reverts to the freeholder.
Leaseholders will have access to the freeholder’s name and address and is obligated to pay costs such as maintenance, service charges or insurance.
The lease of a flat can be extended by 90 years and for a house, it is 50 years. There are charges for this, so it is best to seek legal advice where possible.
Changing a lease is only possible where the landlord agrees. If there is no agreement, taking the issue to the tribunal may help. When involving a tribunal, it is always best to seek legal advice first.
A landlord ending the lease is rare, but there have been circumstances where it has happened. Formal written notice is required from the freeholder, along with permission from the court. A leaseholder can end the lease at any time with one months’ notice.
The lease will continue unless either party decides to end the agreement. If this is not the case, the leaseholder can remain in the property.
Getting legal help:
If you are having issues when it comes to your leasehold or would like clarity on understanding what this means in relation to your leasehold, contact our specialist team here at Summerfield Browne Solicitors today.
