Terms and definitions
Assignment
This is the term used when you transfer the lease to another person either through sale or transfer.
Block
The building in which your property is situated.
Common parts
The parts of the building or estate that all the residents can use, such as stairs, lifts, paths, communal gardens.
Constitution
This is a document that sets rules for an organisation such as a residents’ association.
Covenant
A covenant is a legal term often requiring a certain course of action is taken or that a course of action should not be taken. Your lease will contain a number of covenants.
Cyclical maintenance
Work that we usually carry out according to a programme over a number of years.
Enfranchisement
The process where leaseholders may be able to acquire the freehold of their block.
Estate
The block, any out buildings and any land associated with the block.
Fixtures
You are responsible for these fittings in your flat. They include kitchen units, the bathroom suite, light fittings and any central heating system.
Forfeiture
This is where the landlord may seek that the Courts give authority for the landlord to take back a property (flat/maisonette). This can arise where a leaseholder breaches the terms of the lease is usually used as a last resort.
The landlord can terminate the lease, require the leaseholder to vacate it and then dispose of it with vacant possession.
Freehold
Absolute ownership of property and the land on which it stands.
Ground rent
This is the rent paid to the landlord during the term of the lease. It is a small annual fixed sum payable by a leaseholder to a freeholder in recognition of the legal contract between them. A ground rent of £10 each year is charged by the Council.
Landlord
This is a person or organisation that owns the freehold (or long term lease) of a property and grants a tenancy or lease to a tenant or leaseholder.
Lease
The lease is a legally binding contract that explains our responsibility to you, and your responsibility to us.
Leasehold
An ownership of a property in a building, that comprises other flats/maisonettes and subject to the payment of service charges and ground rent for a set period of time.
Leaseholder
This is the person who has been granted the lease by the landlord.
Residential Property Tribunal (Leasehold Valuation Tribunal)
Leasehold
A body, which makes decisions about service charge disputes between landlords and leaseholders. It is made up of a panel of people with experience of property , law and a layperson.
Lessee
This means the same as leaseholder.
Mortgagee
This is the lending organisation which has provided your mortgage eg a bank, building society, or finance company. We do not use RV for Service Charges.
Section 20 Notice
This is the consultation letter we must send you when we are intending to carry out works, which cost more than an amount set by government regulations.
Section 125 Notice
This is the Offer Notice, which is provided when the lease is first sold under the Right-to-Buy scheme. It contains the value of the property the sale price along with the estimated cost of the annual service charge, details of repairs and improvements which may be carried out during the first five-year period of the lease, together with the maximum contribution you will be expected to pay, subject to an adjustment for inflation.
Service charge
This is a regular payment made by a leaseholder to a freeholder in return for services the freeholder provides.
Sub-letting
This is the term used where a leaseholder may let their home to a sub tenant.(Leaseholders cannot sub-let part of their home)
Tender
This is what we do to get the best prices for big contracts such as redecoration works, and is based on a detailed specification of the works. We invite contractors to give their price or ‘tender’ for the work.