A contract is an agreement between specified individuals to do, or not to do, certain things. The lease takes this one stage further. The lease runs with the land and no individuals are specified.
As a lease is attached to the land or ‘runs with’ the land, then freeholders and leaseholders can come and go for the duration of the lease, but always subject to the terms of the lease. Of course, if you think about it, this is ideal and practical but can lead to problems.
A lease is traditionally 99, 125 or 999 years long but it can actually be for any number of years. During that time, freeholders and leaseholders may change any number of times.
In fact, there may be many people passing through the land over the years who are subject to the lease but their name may never appear on it. You may have a very old lease showing the names of people who are long dead. It does not matter, as long as your name is on the title of the deeds. You are, however, subject to the terms of that lease. Click here
Stated in the lease is the date on which the term started. This is either the same date as the lease, or predates that date. If the lease is new, the date will be filled in on completion. Also stated in the lease is: the term of the lease (how long the lease lasts); how long the contract lasts that runs with the lease; the ground rent payable to the freeholder; the service charge (the cost of running the whole building insurance, cleaning, roof, superstructure, care of garden sign fact, anything which is not part of the individual property). Note: service charges tend to go up with the cost. The lease will set out the terms which the leaseholder agrees with the freeholder. These are explicit clauses what the landlord and tenant must and must not do.
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