What is a Lease

Leasehold agreements are foundational documents in the management of leasehold properties, governing the relationship between landlords, property managers, and leaseholders. In this lesson, we will explore the intricacies of leasehold agreements and their critical role in service charge budgeting.

A leasehold agreement is a contractual arrangement granting the leaseholder (tenant) the right to occupy and use a property owned by the freeholder (landlord) for a specified period, subject to agreed-upon terms and conditions.

Leasehold agreements typically involve two main parties: the freeholder (landlord) and the leaseholder (tenant). However some leases may contain a third party such as a Residents Management Company or a Manager.

A managing agent will very rarely be named in a lease. The managing agent will be appointed by the party who holds the management responsibilities under the lease, this is generally the Landlord (Freeholder, RMC etc.)