Home / Leaseholder Information
Leaseholder Information
When you buy a flat or maisonette you do not buy the property itself but you buy a lease from the landlord, which gives you the right to live in the property for an agreed period of time. So, if you buy a council flat, we continue to be your landlord but you will not have to pay rent, apart from a small amount each year known as ‘ground rent’.
At the end of the lease period, the council will take over ownership of the flat unless you apply to extend the lease. The lease is a legal agreement between you – the leaseholder – and the council. The lease will explain your rights and responsibilities as well as those of the council. We, Ascham Homes, carry out most of the council’s duties as part of our management agreement.
Under Clause 1 of the standard lease agreement, you must pay:
- ground rent (on 1 April each year)
- your share of the insurance for the block (on 30 September each year), and
- your share of the estimated costs of maintaining, repairing or improving the block and estate. You must pay these estimated charges by 1 January, 1 April, 1 July and 1 October each year.
You must pay a share of the costs of maintaining and providing services for the block of flat where you live. These costs are called service charges and cover:
- day-to-day repairs, maintenance and improvements
- caretaking
- electricity charges for any shared areas, for example, lighting, power to lifts and controlled-entry systems
- administration charges, and
- ground rent and buildings insurance
Our buildings insurance policy covers your flat and the block it is in. You must pay your share of this insurance. You must make your own arrangements to insure your furniture and other personal belongings.
Buying the freehold of your block of flats
In some cases, if you have a long lease and most of the people who live in the block are leaseholders, you may be able to buy the freehold of your block with the other people who live in it.
This is known as the right to ‘enfranchise’. Once you have bought the freehold,
you can decide how to manage the building.
You can get more information about this from the Right to Buy and Leasehold Services team.
Extending your lease
You have the right to extend your lease. This means that you can buy a new lease to add another 90 years to the time left to run on your existing lease.
You can get more information about this from the Right to Buy and Leasehold Services team.
Letting your flat
As a leaseholder, you are normally entitled to rent out your flat as long as the company providing your mortgage does not object. But renting out your property may affect your buildings insurance, because your premium is normally based on the fact that you are living in the flat.
If you rent out your property, you will be responsible for making sure that your tenants do not cause a nuisance to other people. You will also still be responsible for paying the ground rent, service charges and buildings insurance for the flat.
Selling your flat
When you have found someone who wants to buy your flat, your solicitor will need to give the buyer’s solicitor information about your service charges. This will normally include the amount of your normal charges each year, the balance of your account, whether there is any major work planned and so on. We do not include the cost of providing this information in your management fee and will charge for it.