Glossary

A charge payable by a leaseholder under the terms of the lease in connection with a consent, a breach of the lease, the variation of the lease, or the assignment of the lease. Administration charges are regulated by Schedule 11 to the Commonhold and Leasehold Reform Act 2002. They must be reasonable. A leaseholder may apply to the First-tier Tribunal to determine whether a charge is payable and in what amount. Administration charges are distinct from service charges, which relate to the costs of services provided to the building.

The proportion of shared service charge costs allocated to each dwelling in a building. The method of apportionment is usually specified in the lease — for example, equally among all flats, by floor area, or by rateable value. Disputes can arise where an apportionment is challenged as inconsistent with the lease terms, or where the lease is silent on the method.

A form of land ownership for flats and units in multi-unit buildings, introduced by the Commonhold and Leasehold Reform Act 2002. Unlike leasehold, commonhold does not expire. Each unit holder owns their flat freehold and is a member of a Commonhold Association that owns and manages the common parts. Commonhold has been rarely used in practice since its introduction. The draft Commonhold and Leasehold Reform Bill (2026) proposes to make commonhold the default tenure for most new residential flats.

The company limited by guarantee that owns the common parts of a commonhold development and is responsible for its management. All unit holders are members. The Association operates under a Commonhold Community Statement that sets out the rules governing the development.

A formal legal document by which the terms of an existing lease are amended by agreement between the landlord and the leaseholder. A deed of variation requires registration at HM Land Registry if the lease is registered. Distinct from a variation ordered by the First-tier Tribunal under section 35 of the Landlord and Tenant Act 1987, which may be sought where the lease fails to make adequate provision in specified respects.

Used to describe the acquisition of the freehold or a lease extension by leaseholders. More precisely, collective enfranchisement refers to the right of qualifying flat leaseholders to purchase the freehold of their building collectively under the Leasehold Reform, Housing and Urban Development Act 1993; statutory lease extension refers to an individual leaseholder's right to extend their lease under the same Act. See Collective Enfranchisement and Lease Extensions.

The remedy by which a landlord terminates a lease for a leaseholder's breach — for example, non-payment of service charges or ground rent, or breach of a lease covenant. Forfeiture of a residential long lease is heavily restricted by statute. A landlord cannot forfeit without a court order; before forfeiting for non-payment of service charges or administration charges, the amount must first be determined by the First-tier Tribunal or admitted by the leaseholder; and the court has discretion to grant relief. Proposals to abolish forfeiture of residential long leases are in the draft Commonhold and Leasehold Reform Bill. See Reform Tracker.

Absolute ownership of land and property, unlimited in time. In a block of flats, the freehold is typically owned by a landlord separate from the individual flat leaseholders. The freehold encompasses the building structure, land, and common parts. Qualifying leaseholders may acquire the freehold collectively through collective enfranchisement under the Leasehold Reform, Housing and Urban Development Act 1993.

A rent payable by a leaseholder to the landlord under the terms of the lease, in addition to the purchase price of the lease. Ground rent is not connected to services provided; it is a feature of the landlord-tenant relationship. Under the Leasehold Reform (Ground Rent) Act 2022, ground rents on new regulated residential leases granted from 30 June 2022 must be a peppercorn (effectively zero). Leases granted before that date retain their ground rent provisions unchanged by the 2022 Act. See Ground Rent.

In leasehold law, the person or entity that granted the lease and is entitled to receive ground rent and enforce the lease terms. In a block of flats, the landlord typically owns the freehold. Where there are intermediate leases in the ownership structure, the immediate landlord may differ from the superior landlord. Certain statutory rights and obligations — including service charge requirements under the Landlord and Tenant Act 1985 — apply to landlords as defined in the relevant legislation.

A legal interest in land granted for a fixed term. Residential flat owners typically hold a long lease (originally granted for 99, 125, or 999 years) of their dwelling. The lease sets out the obligations of both the leaseholder and the landlord, including the service charge provisions, restrictions on alterations, and repairing obligations. A long lease is registered at HM Land Registry.

A form of property ownership in which the owner holds a lease for a fixed term rather than owning the property outright. In England and Wales, residential flats are almost universally held leasehold. As the remaining lease term shortens, the value of the property typically falls and mortgage lenders' willingness to lend diminishes.

The holder of a leasehold interest; the person who holds a long lease of a residential flat. Also referred to as a tenant in older statutory language, though this usage can cause confusion with assured tenancy and other short-term rental relationships. The two terms are used interchangeably in leasehold legislation.

A lease granted for a term exceeding 21 years. Defined in section 7 of the Leasehold Reform, Housing and Urban Development Act 1993. Most statutory leasehold rights — including the right to extend a lease, the right to participate in collective enfranchisement, and the Right to Manage — apply only to holders of long leases.

A company or individual appointed by the landlord or by an RTM company to manage a building on their behalf. Managing agents carry out day-to-day management: arranging maintenance and repairs, collecting service charges, placing buildings insurance, and handling leaseholder enquiries. Managing agents are required by law to belong to an approved redress scheme but are not otherwise licensed or regulated by a single statutory body as at June 2026. See Managing Agents.

The increase in the combined value of the freehold and the leasehold interest that results from their merger on the grant of a new lease or freehold acquisition. Marriage value arises where the unexpired lease term is below 80 years. Under the current valuation rules, the landlord is entitled to 50% of the marriage value on a statutory lease extension or collective enfranchisement. The Leasehold and Freehold Reform Act 2024 abolishes marriage value from these calculations, but the relevant provisions are not yet in force as at June 2026. See Reform Tracker and Lease Extensions.

The person or company designated to acquire the freehold on behalf of qualifying leaseholders in a collective enfranchisement claim. Typically a company limited by guarantee formed by the participating leaseholders. The nominee purchaser takes title to the freehold on completion of the enfranchisement. See Collective Enfranchisement.

A nominal rent of no commercial value — in practice, zero. Required for new regulated residential leases under the Leasehold Reform (Ground Rent) Act 2022, and the standard ground rent for the extended term of a statutory lease extension under the Leasehold Reform, Housing and Urban Development Act 1993.

The capital sum paid by a leaseholder to the landlord for a statutory lease extension or a collective freehold acquisition. Calculated by reference to a statutory valuation formula and, if not agreed between the parties, determined by the First-tier Tribunal. Distinct from ground rent (an annual payment under the lease) and service charges (contributions to building costs).

A leaseholder who held a long lease of a dwelling in a relevant building on 14 February 2022, and who either occupied that dwelling as their only or principal home, or held no more than three dwellings in England and Wales under long leases in total on that date. Qualifying leaseholders benefit from the cost protections in Schedule 8 of the Building Safety Act 2022. The status passes to successors in title. See Building Safety and Cladding.

The statutory right of qualifying leaseholders to take over the management of their building from the landlord, without needing to prove fault and without purchasing the freehold. Established by Part 2 of the Commonhold and Leasehold Reform Act 2002. Exercised through an RTM company formed by qualifying leaseholders. See Right to Manage.

Section 20 of the Landlord and Tenant Act 1985. Requires a landlord to follow a statutory consultation process before carrying out qualifying works whose cost to any one leaseholder exceeds £250, or before entering a qualifying long-term agreement whose annual cost to any one leaseholder exceeds £100. Failure to consult limits recovery to £250 per leaseholder (for qualifying works) or £100 per year (for long-term agreements), unless the First-tier Tribunal grants dispensation. See Major Works and Section 20.

An amount payable by a leaseholder to the landlord in connection with the costs of services, repairs, maintenance, improvements, insurance, and management of the building or estate. Defined in section 18 of the Landlord and Tenant Act 1985. Service charges are variable — they vary by reference to actual costs incurred, as distinct from fixed annual amounts. A service charge is only payable to the extent the costs were reasonably incurred and the works were carried out to a reasonable standard (section 19, Landlord and Tenant Act 1985). See Service Charges.

The number of years remaining on a lease at any given point. A short unexpired term increases the cost of a statutory lease extension — particularly below 80 years, where marriage value becomes payable under current law — and reduces mortgage lenders' willingness to lend on the property. See Lease Extensions.