FAQS

 

 

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Traffic-Stop-icon2What is a lease?
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A lease is a ‘right to occupy’ for a period of time. It is the usually way to own a flat or maisonette. It forms a binding agreement between a freeholder/landlord (the Lessor) and leaseholder/tenant (the Lessee) setting out the rights and obligations for occupying the dwelling.


Traffic-Stop-icon2Who is the Leaseholder, Lessee and Tenant?stock-vector-vector-glossy-information-web-icon-design-element-75694519
This is the person allowed to occupy the dwelling for the duration of the lease. You will be responsible for a portion of all services, repairs, improvements, maintenance or insurance or landlord’s management costs as detailed in the lease.

Traffic-Stop-icon2Who is the Freeholder, Lessor and Landlord?

This is the owner of the land on which the dwelling sits. It is the person to whom ground rent is paid each year. This person has the right to nominate a management company to arrange communal services to the block.


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Traffic-Stop-icon2What is a head lease?
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This is specific to the superior landlord and leasehold. It is the binding contract between Lessor and Lessee, which confers the right to use the leasehold. There is no limit to the number of leases on a property, however each subsequent lessee/ tenant has to adhere to the terms of the original lease i.e. head lease.



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Traffic-Stop-icon2What are service charges?
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The proportion and costs for which the Lessee is responsible to pay and are set out in the lease; these must be the basis for any invoices sent – including interest charges or penalty fees levied by the management company.

Service charges include the management fee, building insurance and cost of services to the common parts.


Traffic-Stop-icon2      What is forfeiture?

This is the Lessor’s right to repossess property as a result of breach of lease by leaseholder. However, this must be determined by First Tier Tribunal.  Forfeiture can be obtained due to service charge or ground rent arrears.

 

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Traffic-Stop-icon2      Can I sublet my leasehold  ?

INSURANCE

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The lease determines whether a leaseholder can sublet.  Very often notice of the sublet must be made to the freeholder.  In some cases a registration fee may be charged for the administration process.

 Traffic-Stop-icon2    Major communal works

All leaseholders must be consulted by the freeholder before any major works are carried out to the block.  The consultation takes the form of a staged process which allows leaseholders the opportunity to provide feedback on the planned works.  This consultation process can take from three months to several years from the first notice to preparation of the demand for payment. The penalty for getting the consultation process wrong can be very expensive to freeholders.

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Traffic-Stop-icon2      First Tier Tribunal

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The final arbiter for service charge and ground rent matters is the First Tier Tribunal previously it was the Leasehold Valuation Tribunal. All lease variations, service charge disputes or forfeiture proceedings are heard by this tribunal.  Leaseholders have the option to make an application if they disagree with the service charges. Self-representation is allowed by leaseholders in front of the Tribunal.

  Traffic-Stop-icon2    Building insuranceInsurance 2

The freeholder has the right to keep the structure of the block insurance.  This is no contents insurance which is arranged by the leaseholder.  Each leaseholder is required to contribute their portion of the insurance premium as outlined in the lease.