Leasehold Flats

The purchase of a leasehold flat is a very specialist area and it is important that you have a property lawyer who is fully conversant with the peculiarities of a flat purchase.  We at Armitage Sykes have lawyers who have many years' experience in flat purchases and are able to advise on all aspects of the transaction.  We set out below some information that may help you to understand what a complex area this is.

What is leasehold?
Leasehold flats can either be purpose built or alternatively houses which have been converted into flats.  When you purchase a leasehold flat you are buying the right to occupy and use the flat for a fixed term (usually between 99 and 125 years).  The Landlord retains the 'Freehold' of the land on which the flat is built.

What do I own?
Normally you will own the four walls of the flat including the floor and the plaster on the walls and ceiling.  It does not normally include external or structural walls.  The structure and common parts of the building and the land it stands on are normally owned by the Landlord who is responsible for maintenance and repair of the building.

What is a lease?
A lease is a contract between the Landlord and the purchaser ('the Tenant').  It sets out what the Landlord is bound to do.  It also deals with the many obligations on the part of the purchaser which will include the payment of ground rent and contributions to the cost of maintaining and managing the building.  The lease will probably also place certain conditions on the use and occupation of the flat.  The Landlord will usually be required to manage and maintain the structure, exterior and common areas of the property, to collect contributions from all leaseholders and to keep accounts.  It is important that you take expert legal advice on these conditions so as to ensure that you do not breach any of them which would potentially result in Court proceedings.  We at Armitage Sykes will read the lease for you and explain it in plain English to ensure that you fully understand your obligations.

What are your contractual rights?
The purchaser has a right for peaceful occupation of the flat for the term of the lease.  This is usually referred to as "quiet enjoyment".  In addition the purchaser has the right to expect the Landlord to maintain and repair the building and manage the common parts, that is the parts of the building or grounds not specifically part of the purchase in the Lease, but to which there are rights of access, i.e. entrance hall and staircase.  It is important that you are fully advised on your obligations in this regard as there could be severe financial consequences in the event of the Landlord levying charges in respect of these areas.