Most people who own a flat own a long leasehold interest — typically 99 or 125 years — rather than the freehold. As a leaseholder, you hold your flat on the terms of the lease. Those terms almost always include a subletting clause that either prohibits subletting, requires freeholder consent, or permits it freely. Getting this wrong — letting your flat without required consent — is a breach of the lease that can escalate to forfeiture proceedings in serious cases.
On top of the lease obligations, the Renters' Rights Act 2025 now applies to all private residential tenancies in England from 1 May 2026. Leasehold landlords must comply with the same statutory framework as freehold landlords: Periodic Assured Tenancy Agreements (no more fixed-term ASTs), Section 13 rent increase procedure (Form 4A), Awaab's Law, and PRS Ombudsman membership. The intersection of lease obligations and statutory obligations can be complex — this guide covers both.
Checking your lease before letting
The first step for any leasehold landlord is reading the subletting clause in the lease:
- Absolute prohibition: The lease prohibits all subletting — letting the flat would be a breach of the lease. Rare in modern residential leases but check carefully
- Qualified prohibition (freeholder consent required): The most common type — subletting is permitted but requires the freeholder's prior written consent. The freeholder cannot unreasonably withhold or delay consent
- No restriction: Some leases permit subletting freely without consent — check the exact wording, as some 'no restriction' clauses still have conditions
- Also check: user clause (must be used as a single private dwelling — no HMO or commercial use), nuisance clause (building rules on noise, pets, short-term lets), and any specific restriction on Airbnb or holiday lettings
- If in doubt about the interpretation of a clause, take legal advice before letting — a breach of the lease is significantly harder to remedy after the tenant is in occupation
Obtaining freeholder consent to sublet
Where the lease requires freeholder consent, follow this process:
- Write to the freeholder (or their 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 a Periodic Assured Tenancy, the tenant must provide references, the landlord remains responsible for all service charges and lease obligations
- Expect a consent fee (licence to sublet): typically £50–£500 depending on the freeholder and managing agent
- Keep the freeholder's written consent in your tenancy file indefinitely — if the freeholder later alleges breach, this is your evidence
- Check whether consent needs to be renewed for each new tenancy or covers ongoing subletting — the wording varies
Service charges and building obligations during the tenancy
The leaseholder (you, the landlord) remains responsible for all lease obligations during the tenancy:
- Service charges: ground rent, building insurance, management fees, and maintenance contributions remain your liability even when a tenant is in occupation
- Apportion clearly in the tenancy agreement: specify which utilities and charges the tenant pays and which you as leaseholder pay (through service charges)
- Major works levies: the freeholder can impose a major works service charge during the tenancy — this is your liability, not the tenant's. Budget for this when setting rent
- Building rules (often in a 'house rules' document from the managing agent) apply to your tenant — include them as tenant obligations in the tenancy agreement
- If the tenant breaches building rules (e.g. keeping a prohibited pet), you as leaseholder are liable to the freeholder for the breach — not the tenant directly
- Report any defects in common parts to the freeholder or managing agent in writing — defects in your flat remain your statutory repair obligation to the tenant
Renters' Rights Act 2025 — obligations for leasehold landlords
All Renters' Rights Act 2025 obligations apply to leasehold landlords in the same way as freehold landlords:
- All new tenancies from 1 May 2026 must be Periodic Assured Tenancies — no fixed-term ASTs
- Rent increases: Section 13 procedure only — Form 4A, once per 12 months, at least 2 months' notice
- Existing tenants (pre-1 May 2026 ASTs converted to Periodic Assured Tenancies): serve the Renters' Rights Act Information Sheet by 31 May 2026 using Form 1
- Awaab's Law: respond to damp and mould complaints within 14 days, assess the hazard, begin remediation within 7 days of assessment, complete within 28 days
- PRS Ombudsman: register with the mandatory scheme before 1 May 2026 (or by the go-live date of the scheme, whichever comes first)
- Right to request a pet: respond in writing within 28 days — where the lease prohibits pets, you can reasonably refuse on the basis that the lease does not permit it, but you must still process the request formally
Pet requests and the leasehold layer
Pet requests for leasehold flats require careful handling across two layers:
- Under the Renters' Rights Act 2025, landlords cannot unreasonably refuse a tenant's written request to keep a pet
- For leasehold flats, a lease that prohibits pets provides a legitimate basis to refuse — but you must still respond formally within 28 days and cite the lease prohibition as the reason
- If the lease requires freeholder consent for pets, obtain that consent from the freeholder before deciding on the tenant's request — your response to the tenant can be conditional on freeholder consent being granted
- Document every step: tenant's written request, your written response, any freeholder correspondence, and the final outcome
- If the freeholder unreasonably refuses consent for a pet, this is not necessarily a reasonable basis for the landlord to refuse the tenant — take legal advice on the specific wording of your lease and the freeholder's grounds for refusal
Frequently asked questions
What happens if I let my leasehold flat without the freeholder's consent?+
Subletting a leasehold flat without required freeholder consent is a breach of the lease. In practice, many freeholders do not discover the breach or take no action. However, a freeholder who discovers an unauthorised subletting can: (1) serve a notice requiring compliance with the lease (including ending the tenancy); (2) apply to the First-tier Tribunal for a determination that the lease has been breached; and (3) in extreme cases, apply for forfeiture of the lease — though forfeiture is a very serious remedy that courts are reluctant to grant for a subletting breach where the landlord offers to remedy the position. Always obtain consent before letting.
Can I use my leasehold flat as an HMO?+
Operating a leasehold flat as an HMO (House in Multiple Occupation) requires careful checking. First, the lease: most leasehold flat leases require the property to be used as a single private dwelling — letting to multiple sharers from different households may breach this clause. Second, planning: Article 4 directions in many areas require planning permission for change of use from C3 (dwelling) to C4 (small HMO). Third, licensing: mandatory HMO licensing applies if 5 or more occupants from 2+ households occupy the flat. Check all three layers before creating an HMO in a leasehold flat.
Who is responsible for repairs in a leasehold flat — me or the freeholder?+
Responsibility depends on the lease. Typically: the freeholder is responsible for the structure and exterior of the building (roof, external walls, foundations), common parts (hallways, lifts, communal gardens), and communal services (building insurance). The leaseholder (you, the landlord) is responsible for the interior of the flat: internal walls, flooring, fixtures, central heating system, and anything within the flat's four walls. Your repair obligations as a leaseholder feed directly into your statutory repair obligations to your tenant under the Landlord and Tenant Act 1985.
Does the Leasehold and Freehold Reform Act 2024 change anything for leasehold landlords who let?+
The Leasehold and Freehold Reform Act 2024 makes significant changes to leasehold law — including strengthening leaseholders' rights to extend their lease and buy the freehold, restricting ground rent, and improving service charge transparency. For landlords who let their leasehold flats, the most relevant changes are: enhanced rights to challenge unreasonable service charges and insurance costs, and stronger rights to obtain information from freeholders. These changes strengthen the leasehold landlord's position vis-à-vis the freeholder, but do not change the fundamental structure of subletting obligations under the lease.