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DWA Housing Digests (One Of a Series)

	LEASEHOLDERS
	Your ownership of the flat usually covers everything within your 4 walls but does not usually cover external walls or communal areas. The landlord owns the building and the land it stands on. They are responsible for looking after the structure and repairing it. Leasehold ownership of a flat is simply a very "long tenancy" - usually for 125 years (called the "term" of the lease).
	Your lease sets out your rights and responsibilities and those of the landlord. Read the lease - understand your rights and responsibilities
	You will usually pay ground rent as well as a service charge for looking after the structure of the building (and any other services the landlord might provide, such as cleaning). Details of what can (and cannot) be charged by the landlord are set out in the lease. The landlord can only charge reasonable costs. Leaseholders can appeal to the Leaseholders Valuation Tribunal if they feel charged are unreasonable.
	Many leases allow the landlord to create a "sinking fund" for future works, such as lift replacements or re-roofing. The landlord cannot usually carry out major works to the building without first consulting leaseholders. There may be grants available for leaseholders who cannot afford to pay their share of the repairs bill. Leaseholders may also be able to get a loan from the landlord - but leaseholders should always "shop around" because there may be better rates of interest available at local building societies.
	Leaseholders and Housing Stock Transfer
	Where a Council transfers its housing to a Housing Association, the freehold of your building would also pass to the new landlord. Your rights would remain unchanged - various acts of Parliament protect them.
	The new landlord would have to keep to the terms of your lease and you would pay your ground rent and service charge to them instead of the Council. Service Charges would be set on the same basis as with the Council and the Housing Association would not be allowed to make a profit from your service charges.
	There is a charter for Housing Association applicants and residents that sets standards for Housing Associations and is monitored by the Housing Corporation. The Housing Corporation is directly accountable to Parliament.