What is a leaseholder?

A leaseholder is someone who owns a lease. The leaseholder does not own the land surrounding their home or the building that their home is in. If your home is a flat or maisonette, it is part of a larger building which is divided up into individual units. There will usually be another property above, below or next to yours, but still within the same building.

Each property is not independent, but shares things such as the roof, the foundations and the entrance halls and stairs of the building. The shared parts of the building need to be looked after for the benefit of all the individual residents, and the costs will be shared among them.

Newcastle City Council owns the land and the building that your home is in and is the Freeholder of your building. Under the terms of the lease Newcastle City Council is required to maintain the exterior of the building and any common areas. The lease states that you must contribute towards the costs of managing and maintaining your block, estate and grounds - this means that you will be recharged for any repairs carried out to the structure or communal areas of your building. The lease also states that you must pay the ground rent, service charges and major works costs, as demanded.

By purchasing the lease you have a financial interest in the property and you are responsible for looking after your home by keeping it in good repair and condition and maintaining any garden area that is included in your lease. Your boundary plan will show the extent of garden, if any, included in your lease.

You are also required to adhere to the management rules and terms of your lease and to be aware that you require the consent of your Landlord, namely Newcastle City Council, prior to making any alterations, additions or improvements, or if you wish to sub-let the property.

What is the lease?

The lease is a legally binding contract. When you purchased your flat or maisonette under a long lease, you bought the right to live in the property for a fixed number of years, usually 125 years. If you bought your home on the open market, the seller will have transferred their rights and responsibilities to you under the lease for the rest of its term.   

This contract sets out the terms on which the landlord allows the leaseholder to occupy and enjoy the property described in the lease, provided that you comply with the terms of the lease. The property described in the lease is known as the ‘demised premises’. The lease sets out the relationship between the landlord and the leaseholder and sets out their respective rights and obligations. The lease should be regarded as the main determining factor in relation to the way in which the property is managed and maintained. The contract is between you (the Leaseholder) and Newcastle City Council (the Landlord).