UK leasehold glossary
The words look familiar. The legal jobs are different.
Plain-English working definitions for reading a residential lease and the records around it. The document may define a term differently, so always return to the wording used in your own source set.
- Demise
- What was granted?
- Covenant
- Who promised what?
- Apportionment
- How is cost shared?
- Consent
- Who decides?
- Schedule
- Where is the detail?
Inside the document
Terms that tell you how to read the lease.
Demised premises
The property or area granted by the lease, usually described in words and by reference to a plan.
Covenant
A binding promise in the lease to do something, pay something or refrain from an activity.
Reservation
A right or interest retained for the landlord or another person when the premises are granted.
Right or easement
Permission connected with the property, such as access over common parts or use of pipes and services.
Schedule
A structured part of the lease often containing covenants, rights, service-charge machinery or regulations.
Lease plan
The plan used with the written description to identify the premises, building or rights.
Defined term
A word or phrase given a specific meaning for that document. Capital letters often signal one, but drafting varies.
Deed of variation
A formal deed that changes identified terms of an existing lease when the necessary parties agree or a legal route permits it.
People and interests
Terms that identify who is acting in which capacity.
Freeholder
The person or entity that owns the freehold interest. They may or may not be the immediate landlord under a particular lease.
Landlord or lessor
The party entitled to the landlord's interest under the lease. A headlease can sit between this party and the freeholder.
Leaseholder or lessee
The person or entity holding the leasehold interest. Residential leases often use tenant and lessee for the same role.
Headlessee
A leaseholder whose interest sits above an underlease and below the freehold or another superior lease.
Underlessee
A person holding an underlease granted out of a superior leasehold interest.
Resident Management Company
A company connected with the lease structure and given identified management functions. Its precise role comes from the leases and company documents.
RTM company
A company formed in the prescribed way to acquire and exercise the Right to Manage when the statutory route is completed.
Managing agent
A person or business appointed to carry out agreed management services as agent for a landlord, RMC, RTM company or other principal.
Money and management
Terms that keep different charges and records separate.
Service charge
A charge under the lease for specified services, works, insurance or management costs. Authority and apportionment come from the lease.
Reserve or sinking fund
Money collected and held for future expenditure when the lease permits that funding arrangement.
Ground rent
Rent reserved by the lease, distinct from payment for services or works.
Administration charge
A charge connected with matters such as approvals, information, a breach or another lease event, distinct from the ordinary service charge.
Apportionment
The lease mechanism that allocates a cost between contributing properties, sometimes by a fixed percentage and sometimes by another stated method.
Budget
An estimate of expected income and expenditure for a future period. It is not the same document as the year-end accounts.
Accounts
The financial record or statement for a completed period. The required form depends on the lease, company and statutory context.
Demand
A request for payment under the lease. Whether the amount is due, reasonable or correctly demanded is a separate question.
Change and decision
Terms that describe a transaction, permission or route.
Assignment
The transfer of an existing leasehold interest from one leaseholder to another.
Subletting or underletting
The grant of a tenancy or underlease out of the leaseholder's interest, subject to the covenant used in that lease.
Consent or licence
Formal permission for an act controlled by the lease, such as an alteration, assignment or underletting.
Alteration
A change to the premises. The lease may distinguish structural, non-structural, external or other work.
Lease extension
An agreed or statutory process that increases the term of a lease and may change rent or other terms.
Enfranchisement
A statutory or negotiated acquisition of a freehold or superior interest by qualifying leaseholders.
Commonhold
A form of ownership in which units are owned as freehold and shared parts are managed through a commonhold association.
First-tier Tribunal
A specialist tribunal that determines specified residential property matters. Its jurisdiction, process and costs position depend on the application.
Sources for this page
Open the law and guidance yourself.
Free independent guidance on leasehold rights, management, charges and disputes.
↗Official sourceUK legislationUse the current and historical text when a term depends on a statutory definition or process.
↗Working routesBuilding Trust guidesMove from a term to the practical document, source and evidence route for the live question.
→Links and current-law position checked 18 August 2026. Apply the governing documents, building facts and current law to the case in front of you.
