Lease terminology explained

Your lease may include some unfamiliar words, so we have provided a description of what they mean below.  

  • Demise or demised premises 

Your lease sets out what you own, which is known as the ‘demise’ or ‘demised premises’. 

If you live in an apartment for example, you may own everything within but none of the exterior, as communal areas and green spaces are usually for shared use by all occupants. So, the apartment would be your demised premises.  

  • Reserve fund or sinking fund 

If Onward is responsible for maintaining any elements of the building you live in, including communal areas or green spaces, you will be responsible for the cost of major works such as a roof replacement.  

Your lease allows us to collect funds from you that will be placed in a ‘reserve fund’ or ‘sinking fund’ to cover the cost of these works in advance of them being carried out. 

  • Lessor and Lessee 

Onward is classed as the ‘lessor’, as your landlord or freeholder. 

You are classed as the ‘lessee’, as the leaseholder or property owner. 

  • Easement 

Where needed, an ‘easement’ will be granted to you within your lease.   

For example, if you need to use a pathway that you do not own to access your property, your lease will include an ‘easement’. 

  • Covenant 

A ‘covenant’ is an obligation from one party to the other.   

For example, a ‘covenant’ may be in place whereby Onward is obliged to provide buildings insurance and you are obliged to pay a service charge. 

  • Service charge 

If we perform duties or provide services which incur costs, we will recover the cost from you via a service charge