A basic guide to leaseholder rights and responsibilities
Paying fees and charges
You are responsible for paying any fees and charges set out in your lease. The most common ones are listed below. Always check your lease to make sure you understand:
- what all the fees and charges are
- what they are for
- how they are calculated
- when and how they can change – for example, if they rise every year
Service charges
Service charges cover the day-to-day cost of running and maintaining the building. This can include repairs, cleaning and buildings insurance.
Your landlord can only charge for work or services that are reasonable, properly carried out and included in your lease.
Find out more: a guide to service charges
Find out more: buildings insurance for leasehold flats and houses
Reserve or sinking funds
Some leases include a reserve or sinking fund that you pay into for major future work or unexpected repairs (for example, to the roof or lifts). The idea is that the fund builds up over time so you do not face a large bill all at once.
Payments are usually part of the service charge but can be separate.
Administration charges
These are extra costs your landlord or managing agent might charge. Examples include chasing late payments, processing information requests or giving permission to sublet or make alterations to your flat.
An administration charge may be variable, or a fixed amount set out in the lease. Variable administration charges must be reasonable.
Ground rent
Ground rent is a fee for the right to occupy the land your property sits on. It is separate from the service charge, which covers the building’s day-to-day upkeep.
Check your lease carefully as some ground rents can increase regularly at a fixed or variable rate.
Most new leases granted from 30 June 2022 (or 1 April 2023 for new retirement leases) do not allow ground rent. But if you have a lease granted before then, you usually need to pay ground rent.
Event fees and exit fees
Some leases (especially retirement leasehold properties) allow your landlord to charge fees for certain “events”. For example, selling, subletting, remortgaging or transferring ownership, or when someone moves in with you (like a carer).
These fees can be:
- very high
- hidden
- hard to understand – for example, when they are charged and how they are calculated
- have different names - like transfer fees, deferred management fees, contingency fees or selling service fees
If buying a leasehold property, ask your solicitor or conveyancer (and if relevant, one who specialises in retirement leasehold properties) to identify all the costs and explain when they are charged, how they are calculated and how high they can go.
- Last updated:
- 22 December 2025
- Next review:
- 22 December 2027
Related content
An introduction to leasehold and the key things to be aware of if you live in a leasehold property.
Topic - Leasehold essentials