What is a leaseholder?
A leaseholder is someone who has bought a flat or maisonette from the Council under the Right to Buy scheme or someone who has bought an ex-Council flat or maisonette on the open market. A leaseholder has bought a long lease (normally for 125 years) and the right to live in the property for the length of the term of the lease. A leaseholder does not own the bricks and mortar or the land on which the flat is situated. This is owned by the freeholder, which is South Tyneside Council.
A leaseholder has a written agreement with the Council, the lease, which contains the leaseholder's and Council's rights and responsibilities in relation to the property and the block in which the property is situated. The lease also sets out the charges which the leaseholder must pay on an annual basis.
The most common charges you will incur as a leaseholder are:
- Ground Rent - The Ground Rent is a fixed, annual payment of £10, which you pay to the Council as a rent for the land on which your property is situated.
- Buildings Insurance - South Tyneside Council provides Buildings Insurance as part of your lease and the cost of the premium is charged to you on an annual basis.
- Management Charge - The cost of the Council employing staff to deal with the lease; the cost of universal tasks such as invoicing.
Involving you as a leaseholder is important to delivering effective, good quality housing services.
We want to make sure that the decisions we make reflect your priorities and that you have the opportunity to be involved either on your own or as part of a group. Read our Getting involved page for more information.