If you own a leasehold home, your lease is one of the most important documents you have. A lease is a legal agreement that sets out your rights and responsibilities as a leaseholder. It also explains how long you have the right to live in your home. Understanding your lease can help you make informed decisions about your home now and in the future.
This article briefly summarises what a lease is and why it’s important.
A lease is a contract between you and the landlord (us) of your building. It explains:
- How long you own the property for;
- your rights and responsibilities;
- our responsibilities;
- any service charges or ground rent you’ll need to pay; and
- rules relating to your home and building and the surrounding estate (if applicable).
Most leasehold homes are sold with a lease that lasts for a fixed period of time. This could be 99 years, 125 years or much longer. As time passes, the number of years left on your lease reduces.
Your lease affects more than just your day-to-day ownership of your home.
It can also affect:
- The value of your property;
- your ability to sell your home;
- whether you can remortgage; and
- your long-term security as a homeowner
As the number of years remaining on your lease gets lower, it may become more difficult or expensive to sell or remortgage your home.
This article is only a brief summary of your lease. Your lease is a legally binding document, and along with any other relevant legislation, takes precedence over the information contained in this guide.
You can usually find this information in your lease document.
When you bought your home, your solicitor should have provided you with a copy of the lease. The document will show when the lease started and how long the original term was.
If you can't find your lease, you may be able to get the information you need through the Land Registry or by using the Leasehold Advisory Service’s free check tool.
You don't need to wait until your lease is close to ending before looking at your options.
You may want to think about a lease extension if:
- Your lease has a short term remaining;
- you're thinking about selling your home;
- you're planning to remortgage;
- you're concerned about the future value of your home; or
- you want long-term security in your home.
If you're a shared owner, your options may be different depending on your lease and whether you've staircased to 100% home ownership.
Leasehold matters can be complex, and it's important to get independent advice before making any decisions.
The Government's Leasehold Advisory Service provides free, impartial advice to leaseholders and shared owners. Their online resources include information about lease extensions, leasehold rights and responsibilities, and tools to help you understand your lease.
Access the Leasehold Advisory Service
If you'd like to learn more about extending your lease, including how the process works, potential costs and the options available, visit our lease extensions webpage. You’ll also find information about recent changes to leasehold law and answers to frequently asked questions here:
We recommend speaking to an independent solicitor for advice if you're thinking about extending your lease.
If you have questions about your lease or are thinking about a lease extension, please get in touch with us by calling 0345 60 20 540, or email homeownership@midlandheart.org.uk
We can't give you legal or financial advice, but we'll explain the options available to you and any next steps you need to take.
