We can explain your lease
We can help explain your Shared Ownership lease
When you purchase your property, you will be required to sign a lease. This is a legally binding contract which states both your rights and responsibilities as the leaseholder, and the rights and responsibilities of your landlord.
Download our guide to your lease here:
What is a lease?
A lease is a contract giving you the right to occupy and use your property for a set period of time (this set period of time is referred to as the ‘term’ of the lease). The lease is a legally binding contract between yourself as a leaseholder, and the landlord.
The landlord of your development is responsible for maintaining your development. Below is a list of some of the most common tasks carried out by landlords:
Cleaning and gardening
Repairs to the communal areas
Maintaining mechanical equipment and services (for example the lift, fire alarm and communal television system)
Generally repair, maintain and improve the development including the structure, exterior and roof foundations
Managing the development’s service charge income and expenditure
Ensuring leaseholders abide by the terms of the lease
The sections of your lease
Your lease comprises a number of sections. In this guide we will explain the conditions found in the different sections in a typical Shared Ownership lease. However the contents and layouts of leases do vary between developments, so your own lease may differ slightly from the lease form that this guide follows.
Land Registry prescribed clauses The Land Registry is a government department that registers the ownership of land and your property. Upon completion of your purchase, your solicitor will register your ownership of your home with the Land Registry and also register a copy of your signed lease. Within this section of the lease you will find Family Mosaic leases typically start with a list of information which will be held on your property’s land registry entry. This entry will include the Land Registry title number, your name, the date the property was first registered as occupied (date of lease), the landlord’s name and the price paid for the property.
Particulars The Particulars state information regarding the purchase of your individual property such as the purchase price , the percentage of equity you have purchased and initial specified rent you have to pay on the equity share you do not own. This section also states whether you have purchased right of use of a parking space, as well as stating the commencement date of the lease. The commencement date is the point in time from which your lease term commences. For example, if your lease is for 125 years, then it will expire exactly 125 years from this date.
The lease plan Your lease will contain a plan highlighting the ‘demise’ of your property. The demise is the area of the development you are purchasing (i.e. your flat or house). This is normally marked in red. If your property has a balcony or patio area then this may be highlighted in a different colour on the plan. This is because you have been given the right of sole use for this area, but not the legal ownership of it. This gives the landlord the responsibility to carry out repairs in this area – however it is your responsibility to keep this area clean and clear of clutter. If you have purchased a specific parking space then this will be highlighted and outlined in a relevant colour on your lease plan. Most parking spaces are sold on a ‘right to use’ basis rather than the purchaser being given full legal ownership of the space. Therefore you should clarify on what terms your space is being sold to you with your legal advisor, as well as ascertain who is responsible for maintaining this space.
Definitions and interpretation This section of your lease clarifies some of the wording and expressions used in your lease.
Date The date the lease commences will be inserted (usually hand written). This will be the date of the first purchase of your property.
Parties This states who your landlord is and confirms the initial leaseholder(s) of your property. When a property is resold the wording of the lease will not be amended, but the Land Registry’s records will be updated to reflect the new leaseholders of the property.
The letting terms This section states that you, as the leaseholder, are given the guarantee of being the leasehold title holder of your property on Land Registry records - in accordance with you purchasing your share, paying your rent and abiding by the terms of the lease.
Frequently Asked Questions
Q. Who provides me with my lease following completion? A. Your solicitor will provide you with your copy of the lease.
Q. What happens if I lose my copy of my lease? A. Family Mosaic will be able to provide you with a copy but there is a fee charged for this service. You can also obtain a copy of your lease from the Land Registry at a charge. We recommend that you obtain a copy of your lease from your solicitor at completion.
Q. Can I negotiate the terms of my lease? A. No, the lease is non-negotiable.
Q. Can Family Mosaic change the terms of my lease? A. Family Mosaic would need to gain your permission in order to change the terms of your lease.
Q. The lease is only for 125 years, what happens after this period? A. The lease can be extended. This is not normally needed until the lease becomes “short”, i.e. has less than 80 years left. Please refer to “We can help with Lease Extensions” guide to see how you can extend your lease.
Q. I have purchased the right of use of an allocated parking space; can I change this for a different space? A. It depends on the wording of the individual lease and if any other parking spaces are available. Spaces will usually all be allocated at point of sale. If another space is available it is likely that a deed of variation would need to be carried out, which would require you to pay legal fees for both yourself and Family Mosaic, as well as any associated Land Registry and mortgage lender fees. Agreeing to change a space (if available) is at the discretion of Family Mosaic.