Leasehold residential properties are a common type of housing in many countries around the world. They are particularly popular in urban areas, where land is scarce and expensive. In this blog, we will discuss leases with regards to leasehold residential properties, including what they are, how they work, and some of the key issues that arise in relation to them.

What is a Leasehold Residential Property?

A leasehold residential property is a type of property where the owner of the property only owns it for a fixed period of time. This period is determined by the lease, which is a legal contract between the owner (known as the landlord) and the occupier (known as the tenant). The lease will set out the terms and conditions under which the tenant can occupy the property, including the rent that they will pay, the length of the lease, and any other obligations that they may have.

How do Leasehold Residential Properties Work?

Leasehold residential properties work by giving the tenant the right to occupy the property for the length of the lease. During this time, they will be responsible for paying rent to the landlord and complying with any other obligations set out in the lease. These may include things like keeping the property in good condition, not making any alterations without the landlord’s permission, and not using the property for any illegal purposes.

At the end of the lease, the property will typically revert back to the landlord, unless the tenant is able to renew the lease or purchase the freehold. This can create uncertainty for tenants, particularly those who have invested a lot of time and money into improving the property.

Key Issues with Leasehold Residential Properties

One of the main issues with leasehold residential properties is the cost of ground rent and service charges. Ground rent is an annual fee that the tenant pays to the landlord for the use of the land on which the property is built. Service charges are fees that the tenant pays to cover the cost of maintaining the common areas of the property, such as the communal gardens or lifts.

In some cases, these fees can be very high, particularly if the landlord has sold the freehold to a third-party company. This can make it difficult for tenants to afford the cost of living in the property, and can also make it harder for them to sell the property when they want to move on.

Another issue with leasehold residential properties is the difficulty of making alterations to the property. Many leases will require the landlord’s permission before any alterations can be made, and this can be a slow and bureaucratic process. This can make it hard for tenants to make the property their own, and can also reduce the value of the property if potential buyers are put off by the restrictions.


Leasehold residential properties are a common type of housing in many countries around the world. They offer tenants the right to occupy a property for a fixed period of time, but can create uncertainty and financial challenges due to the cost of ground rent and service charges. Tenants may also face restrictions on making alterations to the property, which can reduce its value and make it harder to sell. If you are considering buying or renting a leasehold residential property, it is important to carefully review the terms of the lease and seek legal advice if necessary. Please call our conveyancing department to discuss any lease concerns you may have.

Please call us to discuss this or any other property issues. Our conveyancing department would be happy to speak to you during working hours on 0161 850 9911 or at