Francis Butson & Associates

Estate Management

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Jargon Buster

Apportionments: The percentages of fractions used to split the total cost of the services between the Lessees in a block in accordance with the Lease.

AGM: Annual General Meeting.

Assignee: The buyer of the Lease on resale from another Lessee.

Assignment: The sale of the entire Lease to another person by a Lessee.

ARMA: Association of Residential Managing Agents.

Breach: The breaking of the terms of the lease by a Lessee or Landlord, such as failure to pay service charges.

CCJ: Court County Judgement

Common Parts: The parts of a building or land retained by the freeholder which provide some form of amenity or support for the holders of Leases within the same block or estate.

Covenant: A promise or undertaking between a Landlord and a Lessee.

Demised Premises: The property which is the subject matter of a Lease, usually the definition of the flat in the Lease.

EGM: Extraordinary General Meeting.

Enfranchisement: The right to buy the Freehold of a Leasehold block of flats given to Lessees.

FCA: Financial Conduct Authority.

Forfeiture: The means by which a Landlord can bring a Lease to an early end if a Lessee fails to keep the conditions in a Lease. A Landlord’s right to use forfeiture is severely restricted by law.

FRA: Fire Risk Assessment.

Freehold: The absolute ownership of a property until the end of time.

Freeholder: The person or body owning the Freehold.

Ground Rent: The annual rent charge detailed within the Lease, levied by the freeholder to the Leaseholder.

Head Lease: A Lease from which another shorter Lease has been granted (Sub-lease).

HSE: Health & Safety Executive.

Landlord The owner of a property who grants a Lease or Sub-lease, also known as the Lessor.

Lease: A document or contract giving limited ownership of a property for a fixed period of time.

Leasehold: The ownership of property for a fixed number of years granted by a Lease.

Leaseholder: The person to whom a Lease has been granted, also known as Tenant or Lessee.

Lessee: Same as Leaseholder.

Lessor: Same as Landlord.

LVT: Leasehold Valuation Tribunal.

Managing Agent: A person or company appointed by the freeholder of a property, or a residents’ management company, to manage that property.

Ombudsman: An independent professional body that investigates complaints made against professions such as estates agents, solicitors, insurance companies, managing agents, etc.

Party: Typically used to refer to the Landlord or Tenant in the Lease without having to name them specifically.

Reserved Property: The parts of the block of flats that are not in the ownership of the Lessees and for which the Landlord is responsible. Usually the structure and the common parts.

Reversion: A Landlord’s right to get back the leased property at the end of the Lease.

RICS: Royal Institution of Chartered Surveyors.

Residents Management: This is a company normally set up to manage the property instead of the Company (RMC) Landlord. This could also be set up by the developer for the Lessees and may hold the Freehold.

Right to Manage (RTM): The right for Leaseholders in blocks of flats to take over management of their building without having to prove fault of the part of their Landlord.

Schedule: An Appendix in a Lease.

Service Charge: This refers to the cost of repairing and maintaining internal and external communal parts of a building, charged to the leaseholder, tenant or Lessee. The service charge may also be called a maintenance charge.

Sub-lease: A Lease granted out of another Lease for a shorter period.

Surrender: The giving back or sale of a Lease by the Lessee to the Landlord.

Tenant: Same as Leaseholder and Lessee.

Term: The period of time for which a Lease is granted.