Many landlords in England let properties they own on a long leasehold — typically a flat purchased with a 99–999 year lease. Leasehold landlords face a layer of obligations over and above the standard private rented sector requirements: the lease itself may restrict subletting, require freeholder consent, and impose conditions on the tenancy terms. Failing to check the lease before letting can result in a breach of the lease — potentially triggering forfeiture proceedings.
Always read the lease before letting your flat
Subletting a leasehold flat without the freeholder's consent (if required by the lease) is a breach of the lease — it can result in a forfeiture notice. Check the subletting clause in your lease before marketing the property and apply for consent in writing if required.
Checking the lease — subletting clauses
- Absolute prohibition: The lease prohibits subletting entirely — rare in long residential leases, but check for this
- Qualified prohibition (consent required): The most common type — subletting is permitted with the freeholder's prior written consent. The freeholder cannot unreasonably withhold or delay consent
- No restriction: Some leases permit subletting freely without consent — check for this before assuming consent is required
- The subletting clause typically covers the entire flat — not just part of it. Room-by-room letting without consent may also be a breach
- Ground floor commercial units and properties converted from commercial use may have different lease terms — check carefully
Obtaining freeholder consent
- Apply in writing to the freeholder (or managing agent) before signing any tenancy agreement or marketing the property
- The freeholder cannot unreasonably withhold or delay consent — if they do, you can apply to the First-tier Tribunal (Property Chamber) for a determination
- Reasonable conditions on consent may include: the tenancy must be an AST (now a Periodic Assured Tenancy), the tenant must be referenced, the landlord remains responsible for service charges and building rules
- Expect a consent fee (licence to sublet): typically £50–£500 depending on the freeholder
- Keep the written consent in your tenancy file — it may be needed if the freeholder later alleges breach
Service charges and building obligations during the tenancy
- The leaseholder (landlord) remains responsible for service charges, ground rent, and building insurance contributions — even though a tenant is in occupation
- Make clear in the tenancy agreement which utilities the tenant is responsible for and which the landlord pays (as part of the service charge)
- Building rules (no pets, no short-term lets, quiet hours) set by the freeholder or management company apply to the tenant — include them in the tenancy agreement as tenant obligations
- If the tenant breaches building rules (e.g. keeping a pet in contravention of the lease), the landlord — not the freeholder — is liable for the breach
- Major works: the freeholder can levy a major works service charge during the tenancy — this is the landlord's liability, not the tenant's
Renters' Rights Act 2025 impact on leasehold lets
- All new tenancies in leasehold flats in England from 1 May 2026 are Periodic Assured Tenancies — no more fixed-term ASTs
- Leasehold landlords must comply with all the same Renters' Rights Act obligations as freehold landlords: Section 13 rent increases (Form 4A), pet requests, subletting room requests, and PRS Ombudsman membership
- Pet clauses: if the lease prohibits pets and the tenant requests one, the landlord can reasonably refuse on the grounds that the lease prohibits it — but must still process the request formally and respond in writing within 28 days
- Consent to sublet a room: if the lease requires freeholder consent for subletting, the landlord may need to obtain freeholder consent before approving the tenant's subletting request — include this condition in any consent to the tenant