The following terms and definitions can also be found in your copy of the Leaseholders' Handbook
Assignment
The sale of the lease. The new leaseholder is the 'assignee'.
Building
The block that includes your property
Common parts
The parts of the building or estate that can be used by all the residents, such as stairs, lifts, paths, communal gardens etc
Constitution
This is a document that contains the rules governing how an organisation must operate e.g. a residents association
Consultation
This is the process of asking for your opinions. Where possible we will consult you about anything we do that affects you
Covenant
A covenant is a legally enforceable obligation or promise to do or not to do something
Cyclical Maintenance
Work that we do on a regular programme. It is included in your service charges
Enfranchisement
The process by which a group of leaseholders buy the freehold of their block
Estate
Your building, other buildings and land that share facilities such as private roads, play areas and communal properties situated within the estate
Estate Rateable Value
The total of all the rateable values of properties situated within the estate
Forfeiture
This means that the lease is terminated and we as freeholder can lawfully take back the property after bailiffs have removed anyone in occupation. This course of action would only take place where there have been significant breaches of the covenants contained within your lease and following an order issued by the Leasehold Valuation Tribunal or a Court.
Freehold
Absolute ownership of property and the land on which it stands
Ground Rent
This is the rent (a small fixed sum) paid annually to the landlord during the term of the lease. The sum is payable by the leaseholder to the freeholder in recognition of the legal contract between them. It is £10.00 each year.
Improvement
Doing more work to a property than is required to satisfy an obligation to repair, or adding something that was not there before
Landlord
This refers to the person or organisation that owns the freehold (or long term lease) of a property and grants a tenancy or lease to a tenant or leaseholder
Lease
The lease is a contract between the landlord and the leaseholder that sets out the obligations of both parties
Leasehold
An ownership of a property in a building comprising of other flats/maisonettes and subject to a payment of service charges and ground rent for a set period of time
Leasehold Valuation Tribunal
This is a body that makes decisions about service charge disputes between landlords and leaseholders. It is made up of a panel of people with experience of property disputes such as solicitors and surveyors
Lessee
This means the same as leaseholder
Mortgagee
This is a bank or building society that lent you money so that you can buy a property
Rateable Value
A property based sum, used originally as a former method of local taxation, but used in this context as a reasonable way of apportioning some service charges
Section 20 Process
This is the consultation process we must follow if we are intending to carry out works or enter into long-term contracts for services that will cost you more than a sum prescribed by legislation
Section 125 Notice
This is the offer notice which is provided when the lease is first sold. It contains itemised details of repairs and improvements and their cost. It limits your contribution to the cost of the works during the first five full financial years after the original sale of the lease
Section 146 Notice
Notice of breach of the lease and possible forfeiture
Service Charge
This is a payment made by the leaseholder to a landlord in return for services the freeholder provides
Tender
This is a process to get competitive prices for large contracts. We invite contractors to give their price or 'tender' for the works