Freehold and leasehold property
If you buy a house, you will almost certainly be buying the freehold. If you buy a flat or a maisonette, you will most likely become a leaseholder. You pay the council a small ground rent and a service charge. Service charges can be higher than you might expect.
Council leasehold property
When you buy a leasehold property from us, we are still responsible for managing, maintaining, repairing and improving the block and the estate in which it is situated. However, you will have to contribute towards the cost.
Your contribution is normally billed separately from your annual service charge payment. The S125 notice will include a list of any works that may be carried out in the first five years of the lease with an estimate of costs of your contribution.
Annual service charge
We are responsible for providing services such as:
- estate lighting
- estate grounds maintenance
- caretaking
- cleaning of communal areas
- certain routine repairs and maintenance.
You will pay for this as part of your annual service charge. We will send you an estimate of the annual service charge with the S125 notice.
Make sure that you can afford the service charge when you want to buy your property.