Here is a helpful
list of the most common terms and their meaning.
Term
Meaning
AGM The Annual General Meeting of a company
Block
A building containing individual flats and
common areas shared between them
CLARA
2002 The
Commonhold and Leasehold Reform Act2002
Common parts Those area of a block of flats that are common
to all flat owners
Commonhold A new form of tenure created by the
Commonhold and Leasehold Reform Act
2002. Commonhold allows for the freehold
ownership of the individual flats within a block,
and shared ownership of the common parts
D&O Directors and Officers (usually refers to a
particular type of insurance policy insurance)
D&O Commonly refers to Directors and Officers
Insurance
DDA
Disability Discrimination Act 1995 and / or
Disability Discrimination Act 2005
EGM
An
Extraordinary General Meeting of a
Company
Enfranchisement
The process by which the leaseholders of a
block can purchase the freehold of the building
Forfeiture
A legal process which enables a landlord to
terminate a lease where the tenant is in breach
and take back possession of his property
Freehold
Absolute ownership of a property - the most
supreme form of tenure possible
Ground rent A nominal amount paid by the lessee to the
freeholder in compensation for the use of the
land by the building in which the lessee has a
flat
Landlord
Commonly the freeholder to the
property, the
landlord is a party to the lease and grants the
use of the property for a definite period of time
to the lessee. Also, known as lessor
Lease The property contract between a lessee and
lessor, setting out the terms of agreement
between them
Lease Extension The right of the lessee to demand the landlord
to extend his lease to 99 years
Leasehold A form of property ownership which provides
the right to use and enjoy a property for a
definite period of time
Lessee
The party to a lease who is granted the right to
use and enjoy the property for a definite period
of time
Lessor
See landlord
Managing
Agent A company
instructed to manage the common
parts of a block of flats for a fee
NOTB News on the Block - the magazine all about
Flats
Property Manager The individual person employed by a
managing agent responsible for managing a
block of flats
Reserve
Fund A sum of
money saved up over a period of
time to pay for emergency works or complying
with maintenance obligations in a lease. Now,
this term commonly includes the term "sinking
fund" too
Resident Management Company Legal entity set up to control the management
of the block
Reversionary
interest The right to
receive full ownership of a flat
upon the expiration of the lease term
Right to Manage The right of leaseholders within a block to take
control of the management of the building into
their own hands. A Right to Manage company
in which each participating leaseholder is a
member must be formed.
RMC Resident Management company
RTE Right to Enfranchise company
RTM
See Right to Manage
Service
charge An amount
payable by each lessee towards
the maintenance and repair of the common
parts of a block of flats
Sinking
Fund A sum
of money saved up over a period of
time to replace a defunct item, no longer
fit for its purpose. Also see Reserve Fund
Tenure The method by which property is owned.
There are 3 types of tenure:
