What is a Leaseholder

Introduction

As the purchaser, or owner, of a leasehold flat, you need to understand the legal nature of the ownership. What exactly do you own and what are your rights and responsibilities?

What is leasehold?

Leasehold flats can be in purpose-built blocks, converted houses or above shops or other commercial premises.
Leasehold ownership of a flat is a long tenancy, giving the right to occupy for a period known as the term of the lease. The term will usually be for 99 or 125 years and the flat can be bought and sold during that term. The term is fixed at the beginning and so decreases in length year by year. At the end of the term the property goes back to the landlord, (the freeholder), if the term hasn’t been extended.
The leasehold ownership of a flat usually relates to everything within the four walls of the flat, including floorboards and plaster to walls and ceiling, but does not usually include the external or structural walls. The structure and common parts of the building and the land it stands on are usually owned by the freeholder, who is also the landlord. The freeholder is responsible for the maintenance and repair of the building. The costs for doing so are recoverable through the service charges and billed to the leaseholders.