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Terms Explained: G to L

Ground Rent: An amount payable by a Leaseholder for rent of the land upon which the building containing the leased property is located. The amount can vary from a very small amount up to thousands of pounds a year. The amount will be stated in the lease. Ground rent can also go up at intervals during the term of the Lease, but only if this is stated within the Lease.

Gross Rent: The amount of rent which a Landlord decides is due on a property sold under the Shared Ownership scheme. Shared Owners pay monthly rent calculated as a share of the Gross Rent. This share is the called the Specified Rent.

Head Lessee: This means a person or organisation which has acquired a lease and then let it again on an under lease. The person or organisation which acquires the under lease is known as the ‘Under Lessee’. Often the Head Lessee will be billed by a Service Charge from the Freeholder, or their appointed Property Manager, which the Head Lessee then recharges to the Under Lessee.

Historic Neglect: This refers to a situation where, by failing to maintain a building, a Landlord’s inaction causes the overall cost of keeping the building in good repair to increase. For useful case law on the definition of historic neglect see Daejan Properties Limited v Griffin & Another.

Implied Covenant: This is something which is not stated in a Lease, but there is a legal requirement for the Lease to be read as though it was included. For instance, Schedule 6 of the Housing Act 1985 states that the freeholder is responsible for the repair of the structure and exterior of a leasehold property sold under the Right to Buy. This means that even if the Lease states something completely differently, the Local Authority Landlord selling the Right to Buy lease still retains the responsibility for fixing the structure of the property. For case law in respect of implied covenants see Sheffield City Council v Hazel St Clare Oliver.

Jurisdiction: This relates to whether a legal body has the right to make a legal judgement on a particular issue. Whether a particular court or tribunal has the legal right (jurisdiction) to decide on a issue is specified in the relevant Acts of Parliament and Statutory Instruments.