What is leasehold?
A lease is a legal agreement between the landlord (the freeholder) and the person buying the lease (the leaseholder). It gives the leaseholder rights over the property for a fixed term of years. For Right to Buy leases this is usually 125 years.
Buying a long lease on a property gives you the right to live in that property for the number of years that are remaining on the lease. During that time you are able to sell the lease of the property to another person/company (see also ‘first right of refusal’ in the ‘selling your home’ section of the Leasehold Handbook).
The lease sets out the obligations of both the leaseholder and the freeholder.
Whether you purchased your home from another leaseholder or from the Council under the Right to Buy scheme you will have purchased the lease on your home. Although you will own a long lease for your property there is a landlord and tenant relationship between yourself and the freeholder. Therefore in some documents and legislation you may find that you will be referred to as a tenant.
At the end of the lease the property once again returns to the freeholder. In most cases you can apply to have the lease extended and in some circumstances apply to buy the freehold. (See buying lease extensions in the Leasehold Handbook).
The lease is the legal contract between you and your freeholder. It is a very important document. You become a leaseholder by:
- Buying your home under the Right to Buy (see Right to Buy).
- Buying your home on the open market from a previous owner.
There are currently two types of leases which can be bought under the Right to Buy:
- Category ‘b’ for street properties (converted houses).
- Category ‘e’ for flats in blocks.
Examples of the leases can be found at the following links, however you should always refer to your own lease as this may differ to the examples shown. It is important that you understand your lease and the conditions in it. Conditions could have serious consequences. You should read your lease and obtain advice from a solicitor or the Citizens Advice Bureau if there is anything you are unclear about.
Example of a Right To Buy B Case Lease
Example of a Right To Buy E Case Lease
Refer to your lease and your Leasehold Handbook for further information. This document provides information about your responsibilities as a leaseholder and Lewisham Homes' responsibilities as your managing agent.
If you would like a copy of the handbook sent to you, please contact the Leasehold Services team on freephone 0800 028 2 028 - press 5 (020 8613 4000 may be cheaper if phoning from a mobile) or email leasehold@lewishamhomes.org.uk. Please note there is a charge for a copy of the guide.
