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Leaseholder Renting & Selling Homes

Leaseholders can sell or rent their property without our permission. The freehold can also be collectively purchased if conditions are met.

You do not need our permission to sell your property if you are a leaseholder. However, we must be told of any change of ownership within 21 days of exchange. Upon completion, the lease will pass to the new leaseholder. We charge a fee for producing legal documents relating to the sale.

If a property is bought from us and sold within 5 years, some or part of the discount may be repayable. However, this does not happen if the sale is to your spouse or family member who has lived with you for at least 12 months.

Renting

Properties may be rented out. We simply require a forwarding address. Make sure your tenants keep to the terms of the lease, as you are responsible for their actions. You may forfeit your lease and could lose your property. 

A Sub-letting Advice Form will need to completed and returned beforehand. This contains the details we need from you before you rent your home.

The Service Charge is still the leaseholder’s responsibility to pay. Invoices will be sent to your forwarding address.

Landlord requirements

Landlords have a duty to ensure gas fires and boilers are kept in good order. They must be checked every 12 months and issued with a gas safety certificate.

Renting your property also affects insurance policies. Insurers will need to be informed of the change. Leaseholders should have minimal contents cover for carpets and any furniture left for tenants.

Buildings insurance premiums can also be affected if tenants are the main occupants of the property.

Buying a freehold

Leaseholders have the right, as a group, to buy the freehold of the building. They and their building will need to qualify. This is called collective enfranchisement. Once bought, leaseholders take over the management of the building.

To qualify certain conditions have to be met:

• the block must have two or more flats
• no more than 25% of the internal floor area must be used for non-residential purposes
• at least two-thirds of the flats in the block must be leasehold
• at least half of the leaseholders must want to buy the freehold
• the group of leaseholders purchasing must be properly constituted in line with the law

It is essential you get legal advice if you wish to apply to buy the freehold of your building.

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