How your lease affects your home

Most leasehold properties are flats but you do get leasehold houses. For example, many shared ownership houses or bungalows in a retirement development are leasehold.

Living in a leasehold flat

With a leasehold flat, you usually own everything inside the four walls of the property, including the floors, the plaster on the walls and the ceiling. You do not own the outside or structural parts of the building.

The freeholder normally owns the building’s structure, shared areas and the land it stands on. They are responsible for repairs and maintenance and recover these costs from leaseholders through service charges.

Living in a leasehold house

With a leasehold house, the lease usually covers the entire building, inside and out, and might also include the gardens. In this case, the leaseholder is normally responsible for all repairs and maintenance to the property.

If the house is on a "managed estate" (land or property that includes shared areas or facilities used by multiple owners or leaseholders) the freeholder might be responsible for maintaining those communal areas such as roads or shared gardens. The cost of maintaining these areas is usually recovered from leaseholders through various charges (often known as "estate charges").

Your lease will detail your rights and responsibilities. Common ones for leaseholders can include:

• statutory rights: extend a lease, buy the freehold, be consulted on costs, challenge charges
• lease-based rights: access to shared areas, privacy and use of the property
• responsibilities: paying charges and fees detailed in the lease, not disturbing neighbours
• getting permission: before altering the property or subletting (renting it out)

Leases are legal documents and can be difficult to understand. Your rights and responsibilities can also change – for example, if you buy the freehold.

Find out more: understanding your rights and responsibilities

Most leases contain rules (known as “restrictions” or “covenants”) that limit what you can do with your home. Common restrictions include:

• structural alterations (removing walls, replacing windows, loft works)
• changing flooring (replacing carpet with hard floors)
• subletting or short-term letting (Airbnb)
• keeping pets

Find out more: understanding what you can and cannot do to your home and when you need permission

Your lease will detail the rights and responsibilities of your landlord (freeholder). Common rights and responsibilities can include:

• enforcing the rules (“terms”) of the lease
• giving permission for things like alterations and subletting (renting out) your home
• collecting service charges, or ground rents (if applicable)
• managing and maintaining any areas they own or control – for example, in flats the external structure and communal areas

Make sure you understand your lease, especially:

• the costs, including:
  • service charges – history and forecasted costs
  • ground rent – history and forecasted costs
  • any other costs or fees detailed in your lease
  • any major repair works planned and the costs
  • length of the lease and number of years remaining
• any restrictions, including things like:
  • subletting (renting out) your home
  • making alterations and home improvements
  • keeping pets
• your responsibilities and those of your landlord or their managing agent
• your statutory rights, including if you qualify for the right to:
  • extend the lease
  • buy the freehold
  • take over the management of the building (flats only)
• who the landlord and managing agent are, and if they are reputable