A headlease, also known as a superior lease, is a lease agreement between the freeholder and an intermediate leaseholder (the head leaseholder). This leaseholder then sublets the property to other tenants or leaseholders under separate agreements.
A headlease sits between the freeholder and subleases, creating a tiered ownership structure:
This structure is common in large developments, commercial properties, and blocks of flats.
✅ Fixed-Term Agreement – The headlease is valid for a set period, often 99–125 years for residential properties.
✅ Rent Payment Obligations – The head leaseholder pays ground rent to the freeholder and may collect rent from subtenants.
✅ Property Management Responsibilities – The head leaseholder often manages maintenance and service charges for the subleaseholders.
✅ Legal Control – The head leaseholder must comply with the freeholder’s rules, but also enforces terms on subtenants.
| Feature | Headlease | Sublease |
|---|---|---|
| Granted By | Freeholder | Head leaseholder |
| Holds Direct Lease with Freeholder? | Yes | No |
| Pays Ground Rent to Freeholder? | Yes | No |
| Manages Subtenants? | Yes | No |
❌ Obligations to Both Freeholder & Subtenants – The head leaseholder is responsible for maintaining the lease agreement up and down the chain.
❌ Lease Expiry Issues – If the headlease expires, all subleases under it may be affected.
❌ Service Charge Disputes – Subtenants may challenge service charges, creating financial and legal issues.
Yes, a head leaseholder can:
At Fraser Bond, we provide expert guidance on:
A headlease is an intermediate lease agreement between a freeholder and a leaseholder who sublets the property. It plays a vital role in property management, rent collection, and legal responsibilities. If you're involved in a headlease or leasehold arrangement, contact Fraser Bond today for expert advice.
