Leaseholders

A leaseholder is a person or entity that holds a lease on a property, typically a flat or apartment, granting exclusive possession for a defined period while the freehold remains with a landlord or freeholder. A lease is a form of property interest that can be bought, sold, or inherited, and it often runs for long terms such as 99, 125, or 999 years. Leases commonly include covenants restricting alterations, subletting, use of the property, and responsibilities for maintenance.

Leaseholders usually pay ground rent, service charges, and insurance for the building, along with maintenance costs for common areas. These charges may be collected by a management company, a residents’ association, or the freeholder. The lease may grant or restrict rights to access for repairs and specify how and when major works are funded.

Rights and responsibilities: Leaseholders have the right to occupy the property for the lease term and to receive information about charges. They are obligated to comply with lease covenants, maintain the interior, and avoid nuisance. They typically cannot undertake structural alterations without consent and must adhere to rules governing the building and common areas.

Context and reform: Because lease terms influence property value and future options, leaseholders may seek lease extensions or collective enfranchisement to acquire the freehold, depending on jurisdiction. Some regions regulate ground rents or provide statutory rights to extend a lease or buy the freehold. The leasehold concept contrasts with freeholders (landlords) and with tenants who have shorter tenancy rights without a long-term ownership interest.