Glossary

Forfeiture means the lease can be terminated and the property revert to the freeholder. This could arise arises if the leaseholder breaches the terms of the lease.

An example could be a failure by a leaseholder to maintain their flat. The law restricts the use of forfeiture even where the lease has been breached; however, if you find yourself in this situation you should seek legal advice. If an alleged breach is not admitted or agreed by the leaseholder the landlord will have to apply to the First-tier Tribunal or a court for a determination of the breach before they can start any forfeiture action.

The ultimate title in property.

By being the owner of a freehold you own the building, and the land it stands on, outright and forever.

Owns the freehold of a property which can include a building and other property or land.

In a block of flats, for example, the freeholder would own the land and the actual building. A leaseholder will own a flat within that property on a lease for a fixed length of time, but the freeholder will own the property outright. The freeholder is usually responsible for the repair and maintenance of the exterior and common parts of the building. At the end of the lease, the flat ownership reverts to the freeholder.

A freeholder is also commonly referred to as the landlord.