TPI Level 4 Member Exam in Leasehold Management key terms

A lease granted for a fixed term of over 21 years, typically in return for a premium or ground rent, giving the leaseholder a proprietorial interest in the property that can be bought, sold and mortgaged.

The clause in a lease that identifies and grants the property to the leaseholder, setting out exactly what is included in the letting and what is excluded from it.

A binding promise made in a deed, such as the leaseholder's promise to pay rent and service charges or the landlord's promise to repair and insure, enforceable by the party entitled to benefit.

The landlord's power to bring a lease to an end early because of a serious breach of covenant, normally requiring formal notice and, for most breaches, an order of the court.

A formal notice under the Law of Property Act 1925 that a landlord must serve before forfeiting a lease for breach of covenant other than non-payment of rent, giving the leaseholder time to remedy.

A periodic payment owed by the leaseholder to the landlord under the lease, often a modest fixed sum, which is separate from and additional to the service charge.

A payment by a leaseholder towards costs the landlord incurs in providing services, repairs, maintenance, insurance and management of the building, recoverable only so far as the lease allows.

The method used to divide the total cost of services, repairs or insurance between leaseholders, usually expressed in the lease as fixed percentages, fractions or floor areas.

The statutory test for service charges, requiring costs to be reasonably incurred and works or services to be of a reasonable standard; disputed charges can be challenged before the tribunal.

An order of the tribunal preventing a landlord from recovering through the service charge the costs it incurred in litigation or tribunal proceedings about service charges.

A charge payable by a leaseholder arising from a breach, default or other matter, such as a fee for consent or a reminder letter, recoverable only if the lease permits and the amount is reasonable.

The statutory procedure requiring a landlord to consult leaseholders before carrying out qualifying works or entering qualifying long-term agreements above the cost thresholds, allowing them to nominate contractors and comment on proposals.

Repair, maintenance or improvement works to a building that fall within the statutory consultation requirements because the amount a landlord would recover from any one leaseholder exceeds the prescribed threshold.

An agreement for services or works lasting more than twelve months, at a cost above the prescribed annual amount per leaseholder, which triggers statutory consultation before the landlord enters into it.

A payment on account collected during the service charge year, based on the budgeted expenditure, which is later adjusted once the actual costs for the year are known.

The year-end adjustment comparing estimated service charge payments collected with actual expenditure incurred, producing either a further demand on leaseholders or a credit in their favour.

Money collected through the service charge and set aside over several years to meet future major works or replacements, held separately and accounted for apart from day-to-day funds.

The statutory arrangement under which service charge contributions paid by leaseholders are held on trust by the landlord or agent and must be kept separate from other money.

Money a managing agent holds on behalf of others, such as service charge and reserve fund contributions, which must be kept in a designated client account and protected from the agent's own funds.

A compensation scheme that regulated property agents must join, reimbursing clients if the agent misappropriates or loses money it holds on their behalf.

The forecast of income and expenditure for an upcoming service charge year, used to set interim charges and to plan maintenance, insurance and management costs.

A documented review of a building identifying fire hazards, the people at risk and the measures needed to remove or reduce that risk, required for shared parts by fire safety law.

A record of where asbestos-containing materials are present in a building, maintained by the duty holder so that maintenance work and contractors can avoid disturbing them.

An assessment of a building's water systems to identify conditions that allow legionella bacteria to multiply, together with control measures such as temperature monitoring, flushing and record keeping.

Legislation creating a stronger safety regime for higher-risk residential buildings, including an accountable person, safety cases and duties to assess and manage building safety risks.

The amount needed to rebuild or repair a building after total damage, used to set the sum insured; it differs from market value and should be reviewed periodically as construction costs change.

Insurance covering the structure and shared parts of a block against risks such as fire, flood and subsidence, usually arranged by the landlord and recovered from leaseholders through the service charge.

The statutory right of qualifying leaseholders in a building to buy the freehold jointly through a nominee purchaser, subject to eligibility rules, notice procedures and payment of a premium.

The leaseholder's statutory right to add years to a long lease of a flat, subject to eligibility criteria, the service of formal notice and payment of a premium determined by agreement or the tribunal.

The statutory right of qualifying leaseholders to take over management of their building through a company they control, without buying the freehold and without proving fault by the landlord.

A company, often owned or controlled by the leaseholders, which holds management functions under the lease such as collecting service charges, arranging repairs and insuring the building.

A professional firm appointed under a management agreement to run the day-to-day management of a block for the landlord, including budgeting, service charges, repairs, insurance and compliance.

The contract defining a managing agent's duties, fees, authority and reporting obligations, together with the notice and termination arrangements that govern the appointment.

A situation where an agent's own interests, or those of a connected business, could improperly influence decisions taken for the client, requiring disclosure and active management.

A government-approved independent dispute resolution service that property agents must belong to, allowing clients to escalate complaints the agent has not resolved directly.

The legal rules governing how personal information about leaseholders, tenants and contractors is collected, stored, used and shared, including duties to keep it accurate and secure.

A tenants' association meeting statutory criteria that has been recognised by the landlord, giving it rights to information and consultation, including nominating contractors during major works consultation.

A documented process for receiving, investigating and responding to complaints within set timescales, with clear signposting to the redress scheme where the complainant remains dissatisfied.

The structured transfer of records, funds, contracts and knowledge between outgoing and incoming managing agents, designed to keep services running and preserve legal and safety compliance.

A leaseholder's statutory entitlement to see accounts, receipts, insurance details and other documents supporting the service charge, which the landlord must make available on request.