Whose Wall Is It Anyway? A Leaseholder's Guide to Your Demise and the Service Charge
Understanding what is your responsibility versus what is communal can save you a world of confusion, disputes, and unexpected costs. The key lies in two fundamental concepts: the demised premises and the service charge.
The “Demised Premises”: What You Actually Own
When you buy a leasehold property, you don’t buy the building; you buy the right to occupy a specific part of it for a set number of years. Your lease will have a “Demise” definition which spells out what’s yours. For a typical flat, this usually includes:
- The internal wall, floor, and ceiling surfaces
- Internal, non-structural walls
- Fixtures and fittings inside the flat
- The windows, including the glass and the frames
- Conduits serving exclusively your flat
Split responsibility example: While the window frame itself may belong to you, the lease might state that the external surface of the frame is a communal responsibility (to ensure uniform appearance).
The Service Charge: Paying for the “Retained Parts”
Everything else—the main structure and shared areas—is known as the “retained parts.” The freeholder is responsible for maintaining these parts, recovering the cost via the service charge. This typically covers:
- The main structure (roof, foundations, external and load-bearing walls)
- Communal areas (hallways, staircases, lifts, gardens)
- Building insurance and fire safety equipment
- Cyclical maintenance (like external redecorations every five years)
- Management Fees and Reserve Funds
A Practical Example
Scenario 1: A leaking kitchen tap—your demised premises, your cost.
Scenario 2: A rotten window frame (if demised to you)—your responsibility, though the exterior painting may come from the service charge.
Scenario 3: A leak from a shared pipe in the wall—shared service, repair cost from the service charge.
Your Lease is Your Rulebook
Before you buy a property, ensure your solicitor provides a clear “Report on Title.” If you’re already a leaseholder facing a dispute, read your lease. If unclear, seek professional advice.