Leaseholder obligations

1. Use language that people can understand!

There has historically been a tendency for some property lawyers to use language which is almost incomprehensible – a habit which annoys us enormously! Not only can the sentences be too long with inadequate punctuation but the vocabulary can be obtuse and recognisable words can be used in unrecognisable ways. Lawyers have developed an unshakeable reputation for using words such as ‘heretofore’ or ‘aforesaid’ and inserting Latin phrases which only serve to drive others to distraction.

The good news is most modern leases are not written in such a way and due to the Unfair Terms and Regulations, leases written after 1995 which are written in such an unintelligible way will not be enforceable.

2. Terms which unfairly burden consumers

The Office of Fair Trading forbids some terms which are deemed to unfairly encumber the consumer (or leaseholder) or unfairly benefit the supplier (or freeholder). Sometimes, efforts are made to sneak such unfair terms into long leases in particular.

An example often seen is a clause inserted at the end of the lease which requires the leaseholder to state that they have ‘read and understood’ everything. Given how long and complicated the lease can be, it is unreasonable to expect that this would be the case. Ultimately, inserting such a clause marks an attempt to trap the leaseholder so that should an argument arise, the freeholder and his solicitor can simply point to the fact the leaseholder claimed to have read and understood all terms in the lease. Another common tactic is to use a clause giving the freeholder the last word on whether the leaseholder or freeholder has carried out the necessary duties specified in the lease. Some leases will also include disproportionate penalties for breaches of lease terms.

Thankfully, the OFT has largely succeeded in stamping out such underhand tactics. However, given the danger of such unfair clauses, it is crucial leaseholders instruct specialist solicitors to protect their interests. A solicitor will also be able to advise you on whether the Landlord and Tenant Act which protects leaseholders in various ways.

Freeholder obligations

1. Respect quiet enjoyment and exclusive possession

It is crucial that the freeholder respects the leaseholders’ rights of ‘exclusive possession’ (the right to exclude others, the freeholder in particular, from the property) and ‘quiet enjoyment’ (the right to avoid interference from the freeholder provided that the property is being used legally) of the property.

The ‘right to enjoyment’ can be complex because the right only applies to breaches by the freeholder and their agent. Therefore, if the freeholder carried out noisy work in the building which disturbed you as the leaseholder, they are in breach of your right to quiet enjoyment. However, if another leaseholder plays loud music all night they cannot be breaching this right because they are not bound by it. Instead, you would need to take nuisance action against them.

2. Section 48 Notice

Section 48 of the Landlord and Tenant Act 1987 offers important protection to leaseholders as well. It exists to prevent freeholders simply ‘disappearing’ by failing to provide contact details for example in an attempt to shirk their obligations. Freeholders are legally obliged to provide leaseholders with a name and address in England or Wales through which they can be contacted. This address needn’t be a home or registered office (in the case of a property company); it could be a solicitor’s office or a property management company’s office. This can be particularly helpful for leaseholders whose freeholder has moved overseas.

This notice can simply be included in another document and the freeholder will not be able to claim that they never saw the notice if it is sent to the address listed: pleading ignorance is not a valid excuse. If the notice is not served, the leaseholder can withhold payment of rent arrears or service charges until the notice is provided.

3. Good Management

Freeholders are legally required to check that responsibilities as a manager are fulfilled in the proper manner. If a leaseholder believes that the freeholder is not fulfilling their management duties they can take their freeholder to the Leasehold Valuation Tribunal (LVT) which will make a judgement and can punish or demand action from the freeholder. This process can be drawn out and expensive but is better than leaseholders taking matters into their own hands by refusing to pay service charges for example, which could place them in breach of their lease.

Dial 01722 422300 for expert advice on leaseholder rights and obligations

It is crucial that both leaseholders and freeholders are fully aware of their rights and responsibilities. For more information on this complicated area of property law, call our leasehiold extension specialists on 01722 422300, or

Send us an email via the contact form below.

If you own a leasehold house you are likely to be able to extend your lease – however there are various advantages to buying the freehold as you will see from the answers to the following frequently asked questions.

Am I eligible for lease extension on my house?

The chances are that you will be eligible for lease extension – however there is a chance that you won’t be. All leaseholders must have owned the house for at least 2 years and those who have owned the house for less than 2 years will not be eligible. Your eligibility may also be affected if you already have a business lease, if the original lease was for less than 21 years, or if you have sublet a property with a lease under 21 years. You should also know that you can only extend your lease once and this must be done before the lease ends. Therefore, if you have extended your lease before, or your lease has run down you may not be able to get an extension.

Different rules apply to house lease extension and flat/apartment lease extensions. Flat leases can be extended for up to 90 years whereas house leases require 2-year ownership and can only be extended to 50 years.

Are prospective buyers put off by short leases?

A house with a lease below 70 years is likely to be difficult to sell. Potentials buyers will usually struggle to get a mortgage if the lease is short and they are often reluctant to wait 2 years before they can extend the lease. It is therefore in your interests to extend the lease – it will add value to your property. Make sure you apply to extend your lease before it runs out though because otherwise you will lose the right to your lease extension entirely.

I don’t know who my freeholder is? How do I find out?

If you are unaware who your freeholder is you should ask the Land Registry to find out for you.

How do I go about extending the lease on my house?

You have two options for your lease extension.

• Either you attempt to do this informally by making contact with your freeholder and negotiating a price, or
• You make a formal statutory request for lease extension which involves a strict procedure. You will need to pay the legal fees of both you and the freeholder as well as valuation fees involved.

Is it best to buy the freehold of my house instead?

Very often buying the freehold of your house is a good idea because it rules out the need for house owners to pay service charges or ground rent.

Buying the freehold is also likely to increase the value of your home and allows you to make repairs without consent. Buying the freehold can be expensive though, and not all leaseholders will be able to do it.

What will extending the lease on my house cost?

The cost of lease extensions vary depending on the property and the length of the lease. When it comes to house leases, you do not need to pay a fee to the freeholder like you do with flat lease extensions. You will have to cover the freeholder’s legal fees as well as your own. This can add up but it is still usually cheaper than purchasing the freehold.

Will my ground rent arrangements change?

Ground rent will usually go up following a lease extension and will come into effect once the current lease expires. The new amount will be based on the property value at the time of the extension and can go up again after 25 years. If an agreement over the rent payments cannot be reached a Leasehold Valuation Tribunal (LVT) may be needed to fix an amount.

My lease has ended – what now?

Once your lease runs down, you technically cease to be the house owner and instead become an assured tenant paying rent to the freeholder who in effectively becomes your landlord. In this situation you will still have rights as an assured tenant but these will not be as extensive as the rights of a leaseholder.

You may find that you are capable of negotiating informally with the freeholder to extend your lease however they will be under no obligation to grant the extension or even negotiate. You therefore need to get legal advice as soon as possible because if your lease runs down you may lose your financial stake.

Extending the lease on my house – Do I need a specialist solicitor?

That’s a really easy question – the answer is yes. You need to appreciate that very few conveyancing or property solicitors come across lease extension more than once in a blue moon – and sadly, in our experience, many solicitors with little experience of lease extension work, struggle to do a good job for their clients when it comes to extending a lease. When you add in the fact that leasehold houses are relatively unusual these days [though I was surprised to find when researching for this blog, that there are estimated to still be around 200,000 houses in England and Wales which are owned under a long leasehold, though many of these are very expensive properties based in central London] – and far less common than leasehold flats, you understand why when looking to arrange a lease extension on your house, whether it’s your home or the property is rented out, you really do need a solicitor who knows what they’re doing.

Our lease extension team do nothing but lease extension and enfranchisement work – so you can rely on them to provide you with the advice you need.

Thinking of extending the lease on a house? We can help

Our lease enfranchisement and lease extension solicitors can help house owners with lease extensions of leasehold enfranchisement. So, if you are a house owner looking for expert legal advice:

• Call us now us free on FREEPHONE 0800 1404544, or

• Complete the contact form below.

Following my blog entry a few weeks ago about the appointment of a new lease extension solicitor, I’m really pleased to confirm that we’ve now completed the recruitment of our team. Martyn Davies, a highly experienced commercial property and lease extension solicitor has now formally joined us having been with this as a consultant solicitor for the last five months – we were so impressed by him, that we asked him to stay permanently and thankfully he agreed.

Martyn will conduct a mixed caseload of commercial property, lease enfranchisement and lease extension work – working alongside our other new leasehold extension specialist, Sam Davies, and our dedicated leasehold extensions paralegal. Sam, however, will be responsible for all of the firm’s right to manage company work.

Such is the rapid growth of our lease extension advice work, that ready to work we do on behalf of tenants is equal to our residential conveyancing work. Our plan is to increase the number of tenants we help with extending a lease over the next three years by up to 300%. Now that we have finally managed to recruit the right solicitors, we have got the full specialist team in place, and as a result I’m confident that will be able to hit our lease extensions target.

For Lease Extension advice to trust – contact us today

Our expert Lease Extension team can advise you wherever you live in England or Wales, and we don’t even need to see you – taking your instructions by e-mail, phone and Skype video:

• Just call us on [01722] 422300 for a FREE initial phone consultation and a FREE quote for your lease extension

• Complete the contact form below