TPI Level 3 Associate Exam in Leasehold Management key terms

A legal agreement that gives a person the exclusive right to occupy a property for a fixed number of years, usually in return for ground rent and a share of building costs.

The person or company that owns the building and the land it stands on. They grant leases to leaseholders and usually keep responsibility for the structure and common parts.

The person who owns a lease for a fixed term. They have the right to occupy the property and must pay ground rent, service charges and any other sums the lease requires.

The specific property, such as a flat or house, that a lease grants to the leaseholder, including any areas the lease says go with it, such as a parking space.

The freeholder's remaining interest in the building while a lease is running. It is the right to take back full control of the property when the lease term ends.

A promise written into a lease or deed. Covenants can require a party to do something, such as repair, or to refrain from doing something, such as subletting without consent.

The landlord's legal process for ending a lease early because the leaseholder has broken a covenant. It usually requires a court order and is treated as a last resort.

A formal notice a landlord must serve before starting forfeiture proceedings for breach of covenant, setting out the breach and, where relevant, what must be done to remedy it.

A statutory right allowing qualifying leaseholders to set up a company and take over management of their building from the landlord, without proving fault and without buying the freehold.

The statutory process by which qualifying leaseholders of a building can join together to buy the freehold from the landlord, usually through a nominee purchaser company.

A sum a leaseholder pays under the lease towards the cost of services, repairs, maintenance, insurance and management of the building and its common parts.

The amount billed in advance for a service charge year, based on a budget of expected costs. It is later compared with actual spending to work out any balancing charge.

The adjustment made at the end of a service charge year when actual costs differ from the estimated charges. It can result in a further demand on leaseholders or a credit.

Money collected through the service charge and set aside for future major works or replacements, such as a new roof or lift, rather than for routine annual running costs.

The way total service costs are divided between leaseholders, usually by floor area or a fixed percentage set out in the lease, so each pays a fair share.

A written summary of leaseholders' rights and obligations relating to service charges that a landlord must give with a service charge demand under section 21 of the Landlord and Tenant Act 1985.

A leaseholder's statutory right to inspect the accounts, receipts and other documents supporting a service charge, on giving reasonable notice and paying reasonable copying costs.

A rule under section 42 of the Landlord and Tenant Act 1987 requiring service charge and reserve fund money paid by leaseholders to be held in trust, separate from the landlord's own money.

The legal test under section 19 of the Landlord and Tenant Act 1985: service charges must be reasonable in amount and the works or services must have been carried out to a reasonable standard.

The shared areas and facilities of a building, such as hallways, stairs, lifts, gardens and bin stores, which leaseholders use alongside their own flats and which the landlord usually maintains.

Scheduled maintenance carried out at set intervals to keep equipment and buildings in good order and prevent breakdowns, often based on manufacturer guidance and a forward maintenance plan.

Repairs carried out in response to a reported fault or failure, such as a leak or a broken door entry system, rather than as part of a planned programme.

Recurring planned work carried out on a regular cycle, such as external painting, gutter clearing or window cleaning, usually budgeted for each year or every few years in the service charge.

Estimating the cost of replacing or refurbishing building components over their useful life, used to set reserve fund contributions and plan major works.

A professional or company appointed by the landlord or Right to Manage company to run the day-to-day management of a building, including budgets, contractors, compliance and leaseholder communication.

Under the Regulatory Reform (Fire Safety) Order 2005, the person with control of premises who must assess fire risk and put in place and maintain fire safety measures.

A structured review of a building that identifies fire hazards, the people at risk and the measures needed to remove or reduce risk, which must be kept under regular review.

Under the Building Safety Act 2022, the person or organisation responsible for the safety of a higher-risk building's common parts, including maintaining the safety case and engaging residents.

A building at least 18 metres tall or with at least seven storeys that contains two or more residential units, which attracts extra duties under the Building Safety Act 2022.

A documented argument, held by the accountable person, showing how the fire and structural risks of a higher-risk building are understood, controlled and reviewed, supported by evidence.

The organised, up-to-date record of a higher-risk building's design, construction, safety information and changes, kept so that anyone managing risk can find accurate information quickly.

An inspection to locate and record asbestos-containing materials that may be disturbed during normal use or maintenance, so they can be managed and monitored under an asbestos management plan.

An assessment of water systems to identify where legionella bacteria could grow and spread, such as tanks and little-used outlets, and to set the control measures needed.

The statutory process a landlord must follow before carrying out qualifying works or entering long-term agreements, giving leaseholders notice, cost information and a chance to comment.

An order the First-tier Tribunal can make, on a leaseholder's application, preventing the landlord from recovering its costs of tribunal or court proceedings through the service charge.

The independent tribunal that decides disputes about service charges, lease terms, management and similar leasehold matters, usually instead of a court.

A government-approved independent service that considers complaints about a managing agent or property professional if the business's own complaints procedure has not resolved the issue.

A tenants' group that has been formally recognised by the landlord, giving it rights to be consulted and informed about management, service charges and major works affecting the building.