What is a head lease property?
Head leasing is where a private rental property is rented from the landlord/owner by a legal entity, such as a community housing provider (CHP) or a government agency, which then on lets the property to a low income or disadvantaged tenant.
Who owns the head lease?
Landlord: Typically, this is the freeholder but there are situations where your immediate landlord is the ‘head leaseholder’, not the freeholder. A ‘head leaseholder’ will be the leaseholder with the longest lease, who has leased your flat to you and who pays ground rent to the freeholder.
What is the difference between a head lease and an Underlease?
A headlease is a lease granted out of the freehold and an underlease is one granted out of a headlease.
How do head leases work?
A Head Lease is a Lease to an entity that will subsequently grant leases to sub-lessees who will be tenants in possession. It sets out the promises the Landlord has made to his Superior Landlord. The promises contained in this Head Lease will bind the Tenant if he has prior knowledge of those promises.
Who is responsible for the roof in a leasehold flat?
The freeholder is usually responsible for arranging repairs to: the building’s structure, including the roof and guttering.
What happens to Underlease of head lease forfeited?
If the headlease is forfeited because the tenant has breached its terms, the underlease will end automatically. As an alternative, a tenant may be able to agree with the landlord that if the headlease is forfeited and the underlease falls away, the landlord will grant a new lease to the undertenant.
What happens to a sublease when a head lease is forfeited?
Where a headlease is surrendered the intermediate tenant under the headlease falls away and the tenant under the sublease becomes the direct tenant of the superior landlord. This means that the premises will continue to be occupied by the tenant on the terms of the sublease.
Do I need to tell my landlord if my partner moves out?
If you’re joint tenants and you both want to leave, either you or your ex-partner can end the tenancy by giving notice. You’ll both need to move out. If you’ve agreed one of you plans to stay, it’s usually best to explain this to your landlord and ask them to update the tenancy agreement.
Who pays for repairs on a leasehold property?
Who pays for repair work. As a leaseholder, you usually have to pay for repairs that the lease says you’re responsible for. The freeholder is usually responsible for taking out buildings insurance. This may cover all or part of the cost of the repairs, for example if the damage is caused by an accident.
Does a leaseholder own the property?
What is a leasehold? With a leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder. When the lease ends, ownership returns to the freeholder, unless you can extend the lease.
Why you shouldn’t buy a leasehold?
Some of the cons of leasehold include: You might need to pay an annual ground rent or service charge, both of which could be expensive. You may not be allowed to carry out major refurbishment or extension works. Sometimes this will require consent from the freeholder, and there’s no guarantee they’ll say yes.
Are subleases legal?
Yes, subleases are legal. If your existing lease agreement does not specifically prohibit sublease, then it is generally permitted by law. However, many laws and lease agreements require that you obtain your property manager’s written approval and consent for you to sublease your property.
What does under lease mean?
A lease granted by one who is himself a lessee for years, for any fewer or less number of years than he himself holds. …