Commercial Leases Glossary

 A landlord the whereabouts of whom are not known to leaseholders of the property.

These are a set of rules that have been approved by Parliament. They manage minimum standards of design and building work required for the construction of domestic, commercial and industrial buildings. They include regulations concerning the health and safety of people in or around the building, energy conservation, disabled access and facilities, fire safety, structure, drainage and ventilation.

A type of property ownership that took effect in 2004 that allows freehold ownership of individual flats, houses and non-residential units within a building or estate. Possession by commonhold, which is an alternative to the leasehold system, is not limited by time as with a lease.

An agreement, usually under seal, by which someone undertakes to do, or not to do, some specified thing. Examples occur in leases; in conveyances, where the seller covenants that they have good title and the purchaser may covenant not to build, etc.; and in employment agreements where an employee may covenant not to compete.

The grant of a leasehold interest, as referred to in leases.

A right or interest over or in land possessed by someone other than the owner of the land (e.g. an easement, a lease or a mortgage).

A tenancy or licence where the tenant or licensee has the use of any accommodation in common with the owner or a member of the owner’s family, and who occupied the property as their only or principal home both at the beginning and end of the tenancy or licence. Such tenancies and licences are excluded from a number of the provisions preventing possession being recovered without due process of law.

The absolute ownership of land and rights over land for an indefinite time. Contrast Leasehold, where the ownership is limited in time.

A rent, substantially below the market rate, payable by a tenant usually of a long lease for which a capital sum (premium) was paid at the beginning.

The owner of a superior lease to that held by ordinary leaseholders, but which is not the freehold. This is also known as the party that holds an intermediate interest in a property.

In property terms, a property that can be inherited, typically attracting a rateable value.

A middle-level ownership title in a property which is above the level of ordinary leaseholders and below the freeholder. This is also referred to as a head lease.

The legal owner of a property on which a tenancy has been created.

Can refer to any tenancy, but usually used in connection with long leases, where for a fixed sum the tenant buys the right to occupancy of a property for a fixed number of years; usually not less than seven years.

The person who occupies a property on the basis of having bought a long Lease.

The tenant or leaseholder.

The landlord (usually the freeholder).

A personal permission to occupy land whether in exchange for payment or not. Usually a property is occupied on a licence when the occupier doesn't have a right to the exclusive possession of the accommodation, typical of a hotel room, a paying guest or a lodger, etc. This doesn't give the licensee the rights of a tenant. Note, however, that you cannot prevent someone (e.g. someone living in a property at a rent) from being a tenant just by calling their occupation a licence; for example, by getting them to sign a document headed ‘Licence Agreement’.

A person occupying property with the consent of the owner but without enjoying a legal interest in the property occupied.

A person who consents to another person occupying their property without giving that person a legal interest in the property.

Zero ground rent. Also known as ‘peppercorn rent’.

Tenancy that automatically continues from one lease or rental period to the next, until terminated by the tenant or landlord via a prescribed or statutory notice. Periodic tenancies are created expressly (through a written agreement), or by implication when a landlord accepts the rent at the beginning of a rental period.

A landlord such as a local authority, new town corporation or others defined in the Housing Act 1985, Section 1972.

Full market rent. Contrast Ground rent.

The ownership of the freehold in land and certain interests over land like easements. 

Land or buildings the ownership of which is registered at HM Land Registry. The Land Registration Act which came into force on 14 October 2003 has greatly extended the categories of compulsory registration (e.g. they now include all leases of seven years or more).

(a) An agreement by the owner of land (the servient land) not to do something, like build on the land. If such a covenant is made with the owner of land nearby, it may be enforceable against subsequent owners of the servient land. (b) An undertaking in an employment agreement that the employee will not do certain things, like work for a competitor, after the employment ends. If they are to be enforceable, such covenants must be limited in scope to what is fair. If the covenant would effectively prevent the employee from earning a living or is wider than necessary to protect the employer, it will probably be unenforceable

The interest in a property that will return to the landlord (freeholder) at the end of the term of the lease.

The freeholder or landlord.

A charge made to tenants by the landlord or the management company to pay for services provided for the benefit of all the tenants of a property.

A person who occupies property let by a landlord and has the benefit of a legal interest in the property.

The value that a leaseholder is considered to hold in their leasehold property.

The leasehold title held by the head leaseholder, below the freehold and above the ordinary leaseholders.

Land or buildings the ownership of which isn't registered at HM Land Registry. It's possible to find out whether land is registered by searching the Index Map at the Land Registry.