A leasehold is a legal agreement where you are entitled to use a property for a fixed period of time, but not own the property or the land it is built on. You will only ‘rent’ the property from the freeholder for a set amount of time – this is the lease. Usually long-term, leases are often 90 years or 120 years, and can be as high as 999 years – but can be short, such as 40 years.
As a leaseholder there may be restrictions on how and what you can change or alter your leasehold property. If you wish to make significant internal changes to the property, add an extension, or change its use (from residential to commercial), you will have to apply to the freeholder (or landlord) for permission.
Carrying out home improvements or renovations on leasehold property is more complicated because essentially you don’t own the property you are renovating.
What work can I do without the freeholder’s permission?
If you own a leasehold property, you will usually be free to do more minor works – such as painting, decorating, kitchen and bathroom refits – as you see fit. However, for more major alterations – such as fitting a wooden floor, installing windows, or making other structural alterations – check your lease to see if you are allowed to make any such alterations.
The lease is likely to contain a covenant that requires you to seek the freeholder’s permission for certain alterations and improvements. Some leases may stipulate you only need permission for major works involving plumbing or electrics, others may state you require permission for any work.
If unsure in any way get in touch with your freeholder. The freeholder will want to know is that any changes or renovations you intend to make will improve the property and not significantly impact its future value.
What if I go ahead without permission?
If you don’t get consent from your freeholder before undertaking any works they could make you revert the property back to how it originally was, and you will be liable for all costs.
Be aware, that property alterations without consent of the freeholder, may also affect your ability to sell your property in the future – any potential purchaser will ask for details and copies of any consents and permissions. Additionally, any unauthorised alterations or renovations may contravene the terms of your mortgage.
