Leaseholder

A person who owns the right to live in a property (typically a flat) for a fixed number of years, as granted by the lease, but does not own the building or land itself.

A leaseholder is someone who owns the right to occupy a property — usually a flat or apartment — for a fixed term, as set out in their lease agreement. The lease is a legal contract between the leaseholder and the freeholder (who owns the building and land). Most flats in England and Wales are sold as leasehold.

What leaseholders own

As a leaseholder, you typically own:

  • The internal structure and finishes of your flat (walls, floors, ceilings within your unit)
  • Fixtures and fittings you have installed
  • The right to occupy the property for the remaining term of the lease

You do not own:

  • The building structure (external walls, roof, foundations)
  • Common areas (hallways, stairwells, gardens)
  • The land the building sits on

These are the freeholder’s responsibility, funded through the service charge that leaseholders pay.

How being a leaseholder affects renovation

Your lease will contain specific clauses about what changes you can and cannot make. Common restrictions include:

  • Structural alterations — removing walls or changing the layout almost always requires the freeholder’s written consent
  • Flooring — many leases require carpet or specify minimum sound insulation to protect neighbours below. Replacing carpet with hard flooring without permission is a common breach.
  • Plumbing — moving bathrooms or kitchens, or altering shared drainage, usually needs approval
  • External appearance — changing windows, adding satellite dishes, or painting the exterior is typically restricted
  • Working hours — leases often specify when noisy work is permitted

Getting permission to renovate

Before planning any renovation as a leaseholder:

  1. Read your lease — check the alteration clauses carefully. Your solicitor can help interpret them.
  2. Contact the freeholder or managing agent — explain the proposed work and ask what approval process is required
  3. Apply for a licence to alter — for significant work, the freeholder may require a formal legal document granting permission. This involves legal fees (often borne by the leaseholder).
  4. Notify neighbours — your lease or building management rules may require you to inform other residents about planned work and timelines
  5. Factor in timescales — freeholder consent can take several weeks to several months. Do not sign contracts with your general contractor until you have written permission.