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Plain English

Leasehold glossary

Short explanations for people reading a lease or dealing with a shared-building problem. Your own lease may define a word differently, so open the definition and clause in the signed document before relying on this shorthand.

38 terms shown

Reading legal English in a second language?

Use one term at a time. Read the short meaning first. Then ask LEASE-iQ® to show the exact clause and page. Do not rely on an automatic translation for a final legal decision.

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Legal word

Administration charge

What it means

A charge linked to an individual lease event, such as consent, information or an alleged breach.

Why it matters

It is different from the ordinary service charge. Different rules may apply.

Legal word

Alteration

What it means

A physical change to the flat or another part of the property.

Why it matters

The lease may treat structural and non-structural work differently.

Legal word

Apportionment

What it means

The method used to divide a building cost between flats.

Why it matters

Look for a percentage, fraction or another method in the lease.

Legal word

Assignment

What it means

The transfer of an existing lease from one leaseholder to another.

Why it matters

This commonly happens when a flat is sold.

Legal word

Clause

What it means

A numbered or labelled part of a legal document.

Why it matters

A useful answer should identify the exact clause, not only summarise the document.

Legal word

Collective enfranchisement

What it means

A legal route through which qualifying leaseholders may buy the freehold together.

Why it matters

It depends on building-wide facts and current law, not one lease alone.

Legal word

Common parts

What it means

Areas used by more than one home, such as stairs, halls, roofs or shared pipes.

Why it matters

Responsibility may depend on how the lease defines the building and common parts.

Legal word

Commonhold

What it means

A form of ownership where each unit is freehold and shared parts are managed by a commonhold association.

Why it matters

There is still a binding rulebook between the unit owners and the building organisation.

Legal word

Consent

What it means

Permission needed before doing something controlled by the lease.

Why it matters

The wording determines who gives permission and what conditions may apply.

Legal word

Covenant

What it means

A binding promise in the lease to do something, pay something or not do something.

Why it matters

Always ask who made the promise and who can enforce it.

Legal word

Deed of variation

What it means

A formal document that changes specified terms of an existing lease.

Why it matters

Read it with the original lease because the two documents work together.

Legal word

Demand

What it means

A request for payment.

Why it matters

A demand does not by itself answer whether the charge is authorised, reasonable or correctly issued.

Legal word

Demise or demised premises

What it means

The flat, space or other property granted by the lease.

Why it matters

It helps show whether a roof, loft, pipe, window or structure is inside or outside the flat.

Legal word

Easement or right

What it means

A right connected with property, such as access or using pipes through another area.

Why it matters

A right to use something is not always the same as owning or repairing it.

Legal word

Effective date

What it means

The date from which a document or legal rule applies.

Why it matters

The signing date, start date and effective date may not be the same.

Legal word

First-tier Tribunal

What it means

A specialist tribunal that decides certain residential property disputes.

Why it matters

Its powers, procedure and costs depend on the type of application.

Legal word

Freeholder

What it means

The person or organisation that owns the freehold interest.

Why it matters

The freeholder is not always the immediate landlord under a particular lease.

Legal word

Ground rent

What it means

Rent reserved by the lease.

Why it matters

It is separate from payment for services, works or consent.

Legal word

Headlease

What it means

A lease that sits above another lease and below the freehold or another superior interest.

Why it matters

It can change which party owes a duty or can enforce a promise.

Legal word

In force

What it means

A legal provision that currently has legal effect for the relevant place and date.

Why it matters

A reform may have been passed but not yet brought into force.

Legal word

Landlord or lessor

What it means

The party holding the landlord's interest under the lease.

Why it matters

Check the document and title structure rather than assuming this is always the freeholder.

Legal word

Lease

What it means

A contract granting the right to use a property for a stated period, subject to rights, promises and payments.

Why it matters

Your signed lease and later variations are the starting point for most questions.

Legal word

Lease extension

What it means

A process that increases the length of a lease and may change rent or other terms.

Why it matters

The route, price and current legal rules need separate professional checks.

Legal word

Leaseholder, lessee or tenant

What it means

The person or organisation holding the leasehold interest.

Why it matters

These words can describe the same role in a long residential lease.

Legal word

Licence

What it means

A formal permission, often used for alterations, subletting or another controlled act.

Why it matters

It may include conditions, costs and evidence requirements.

Legal word

Managing agent

What it means

A person or business appointed to carry out agreed management work for another party.

Why it matters

The agent's authority comes from its appointment and the governing documents.

Legal word

Premium

What it means

A capital payment for acquiring or changing a property right.

Why it matters

It is not automatically the same as an administration fee, legal fee or service charge.

Legal word

Qualified covenant

What it means

A promise not to do something without consent.

Why it matters

The exact words and current law determine how a consent request must be handled.

Legal word

Qualifying works

What it means

A statutory term used in the service-charge consultation rules.

Why it matters

Do not decide it from the everyday meaning of major works alone.

Legal word

Reservation

What it means

A right or interest kept back for the landlord or another party when the lease was granted.

Why it matters

It may limit the space or rights included in the demise.

Legal word

Reserve or sinking fund

What it means

Money collected for future building expenditure when the lease permits it.

Why it matters

The lease authority, purpose and records should be checked separately.

Legal word

Resident Management Company or RMC

What it means

A company given management functions through leases or related documents.

Why it matters

Its precise authority depends on the documents, not its name alone.

Legal word

Right to Manage or RTM

What it means

A statutory route allowing a qualifying company to take over specified management functions.

Why it matters

It is different from buying the freehold.

Legal word

Schedule

What it means

A structured part of a lease, often near the back, containing rights, promises or service-charge detail.

Why it matters

Important wording may sit in a schedule rather than the main numbered clauses.

Legal word

Section 20

What it means

The common name for statutory consultation requirements applying to certain works and long-term agreements.

Why it matters

The type of cost, thresholds and any tribunal dispensation must be checked.

Legal word

Service charge

What it means

A payment under a lease for specified services, works, insurance or management costs.

Why it matters

Lease authority, demand procedure, evidence and actual reasonableness are separate questions.

Legal word

Term

What it means

The length of time granted by the lease.

Why it matters

The term start date may differ from the date the lease was signed.

Legal word

Unexpired term

What it means

The time left before the lease term ends.

Why it matters

It must be calculated from verified dates and an explicit as-at date.