Toggle Mobile Menu Visibility

Toggle Search Controls Visibility

Information on Leasehold

Our latest Housing Newsletter is now available - please click on the PDF link below to view it.

New Housing newsletter Christmas 23 - Leaseholders [3MB]

Leasehold is a method of owning property (usually a flat) for a fixed term subject to the terms of the lease. High Peak Borough Council leaseholders are generally former tenants who have bought their property under the 'Right to Buy' legislation but, as the leasehold interest can be sold, you may have subsequently purchased the property on the open market.

If you have received your Service Charge invoice or have any other queries and wish to contact us please complete the online query form.

Leaseholder enquiry form

Here is a list of frequently asked questions about residential leasehold

What is Leasehold?

Leasehold is a method of owning property (usually a flat) for a fixed term but not the land on which it stands. It is really a long-term tenancy giving a right to live in the property for a set number of years (the 'term') in return for payment of a lump sum but can be bought and sold throughout that period. High Peak Borough Council is the freeholder and owns the property outright. When the lease expires, ownership of the property reverts back to High Peak Borough Council. Freehold ownership is outright ownership of the property and the land on which the block stands.

What is a lease?

A lease is a contract between you, as the leaseholder, and High Peak Borough Council, as the landlord, giving conditional ownership for a fixed period of time. It is an important document and you should ensure that you have a copy and that you understand it.

What are my rights?

First and foremost, you have the right of 'quiet enjoyment' of the flat for the term of the lease. This right is implied by law, even if it is not set out in the lease. 'Quiet enjoyment' means the right to reside in the premises without unreasonable interference from High Peak Borough Council.

What are my responsibilities?

Principally, these will be the requirements to keep the inside of the flat in good order, to pay (on time) a share of the costs of maintaining and running the building via the service charge, to behave in a neighbourly manner and not to do certain things without High Peak Borough Council's consent, for example, make alterations or sub-let.

What is ground rent?

Because leasehold is a tenancy, it is subject to the payment of a rent to the landlord. This is usually a small amount and, in High Peak Borough Council's case, it is £10 per annum.

What are service charges and why do we have to pay them?

Service charges are payments by you as a leaseholder to High Peak Borough Council for all the services the landlord provides. These will include maintenance and repairs of communal areas, insurance of the building and, in some cases, provision of central heating, lifts, estate staff, lighting and cleaning of common areas etc.

What is a reserve / sinking fund?

Most of High Peak Borough Council's leases provide for the council, as landlord, to collect sums in advance to create a 'reserve' or 'sinking' fund to ensure that sufficient money is available for future major works, such as external decorating, roof replacement or lift replacement.

How is the building insured?

The lease requires High Peak Borough Council to take out adequate insurance for the building and the common parts, and gives us the right to recover the cost of the premium through the service charges.

Can I pay my service charge by instalments?

High Peak Borough Council will look at each case on its own merit.

What happens if I don't pay?

It is your obligation to pay the service charges and ground rent promptly under the terms of the lease. High Peak Borough Council have a number of options to recover the debt if you do not pay.

What if I don't agree with the service charge?

If you have a dispute or query in relation to your service charge the first step should be to ask High Peak Borough Council for full details and/or an explanation. The council will look into your dispute/query and provide you with the information required.

Do you have to consult me before carrying out work or entering into agreements?

High Peak Borough Council should not carry out major works to the building where it costs any leaseholder more than £250 without first consulting the leaseholders.

Can I 'Buy Into' works being carried out for tenants such as new kitchens and bathrooms?

No. At the present time it is High Peak Borough Council's policy to only carry out this type of work for tenants because internal maintenance is paid for through their weekly rent.

Do we have the right to manage our own block or appoint our own manager?

No. This right does not apply where the landlord is a local authority.

Can my lease be extended or varied?

An individual leaseholder, who satisfies certain conditions, has a right to an extension from the landlord, and can add 90 years to the existing lease term. However, there is a cost to this and the price would have to be agreed between you and High Peak Borough Council.

I want to sell my property - will you buy it back from me?

High Peak Borough Council may be interested in buying back properties from leaseholders.

Why can't I buy a freehold flat?

Present property law in England and Wales effectively requires that flats be leasehold, although some leasehold flats are now sold with a share of the freehold, through participation in a residents' management company.

What is a managing agent?

Sometimes the landlord or the residents' management company carries out the management of the property directly. Alternatively, a managing agent may be appointed to manage and maintain the building on behalf of the landlord, in accordance with the terms of the lease, current relevant legislation and codes of practice.

Useful information and addresses

Here you can find the address for HM Land Registry Citizen Centre, the Leasehold Advisory Service and First Tier Tribunal.

I can't find the information I'm looking for - please help me further.

Contact us for more help and information

Pages

Downloads

Leaseholder Insurance [95KB]