When you purchase a leasehold interest you acquire the right to occupy a property, say an flat, apartment or maisonette, or in some cases a house, for a certain period of time as opposed to purchasing the physical structure of the building.
A lease is an important legal document filed at the Land Registry that sets out the terms and conditions under which a leaseholder has the right to occupy a property.
The lease will also set out what each party to the lease (for instance the leaseholder, the freeholder, the leasehold property management company) may expect of each other, and what may happen if any party does not adhere to the terms and conditions.
This will give the address of the apartment, usually together with a note of the floors in the building on which the apartment is located. As the apartment will be only part of a building it will be drawn edged in red on the plan attached to the lease.
Ground Rent is a contractual amount payable to the owner of the land on which the property/properties is/are constructed.
The Lease sets out how much rent is payable and when (it may be annually, half yearly or perhaps quarterly), and to whom (usually the owner of the land is sometimes referred to as the freeholder, the lessor, or possibly the landlord).
Ground Rent is not the same as Service/Maintenance Charge, and is not related to the provision of services at a property, which are entirely separate.
This part of a lease sets out the do’s and don’ts of being a long leasehold tenant. Generally the lease will say:
This part of the lease sets out what the Landlord/Lessor, and/or the Management Company, must do as the landlord. Generally the lease will say that the lessor must: