Renting in Cardiff: Understanding Leasehold, Service Charges & Your Rights

On the market for homes to rent in Cardiff but keep stumbling across terms like leasehold, freehold, and service charges?

Many renters today are unsure on how leasehold agreements can affect their responsibilities, payments, and long-term rights. Understanding these differences and your rights is essential to make the most informed decision.

In this article, we explain the ins and outs of leasehold agreements, associated service charges, and outline your renters rights under Welsh law. Let’s begin.

What Does It Mean to Rent a Leasehold Property?

A leasehold agreement gives you the right to live in a property for a fixed period, while the land on which it stands remains owned by a freeholder. In most leasehold agreements, the tenant will be responsible for (or contributing to) building maintenance, insurance, and any service charges that are outlined in the lease. It is very common for flats and houses to rent in Cardiff to be under a leasehold agreement.

When searching for a property to rent in Cardiff, it’s crucial to understanding whether your targeted property is either a freehold or leasehold property. The exact terms of your lease will clarify your rights, responsibilities, and any potential costs during your tenancy.

What is the Difference Between Freehold and Leasehold Property?

A freehold property means the landlord owns both the building and the land it stands on outright. Whereas, a leasehold property gives the landlord the right to occupy and rent the property under a lease agreement, while the land remains owned by a freeholder.

For renters, understanding the difference between freehold and leasehold properties can help clarify your rights, obligations, and any limitations on your tenancy.

As a general rule of thumb, renting a freehold property will result in fewer restrictions on the property itself, and the landlord will typically be fully responsible for maintenance and insurance.

On the other hand, renting a leasehold property can come with additional rules. These could include restrictions on subletting, use of communal spaces, or specific contributions to service charges.

At Boon Brokers, our dedicated mortgage experts help renters and prospective homeowners understand how leasehold and freehold properties can affect their borrowing, service charges, and long-term costs. As a whole-of-market mortgage broker, we offer fee-free advice that is tailored to your needs.

What Are Service Charges and Do Tenants Have to Pay Them?

Service charges are fees paid to cover the upkeep and maintenance of services within a building or development. This can include cleaning, gardening, repairs, building insurance, and upkeep of communal spaces such as hallways, lifts, and recreational areas. Depending on the lease agreement, service charge payments can be made by either the leaseholder directly or the tenants.

For anyone looking at property to rent in Cardiff, service costs are a key consideration. These costs can often be separate from your rent and could significantly affect your overall housing budget.

Some landlords may provide an estimated annual figure, while others request payment in monthly instalments alongside your rent. The exact amount you will be charged can vary, and will often depend on the building’s age, size, and the number of amenities provided.

It’s important to review the UK legislation on service charges and clarify any additional costs that may apply before signing a tenancy agreement.

When Do Tenants Pay the Service Charge?

Tenants renting leasehold flats may be required to pay service charges as part of their tenancy agreement. These charges will usually only cover general maintenance of shared spaces, building insurance, cleaning, and gardening.

Any service charges payable by the tenant will need to be clearly outlined in the tenancy agreement.

When Do Leaseholders Pay the Service Charge?

Leaseholders, who own a leasehold property, are legally responsible for paying service charges directly to the freeholder or managing agent. These charges often cover a broader range of maintenance, including major repairs, building insurance, and the upkeep of communal facilities.

Leaseholders should receive a detailed invoice and have rights under the Landlord and Tenant Act 1985 to challenge any unreasonable service charges.

Below, we have provided a quick overview of who is typically responsible for paying service charges, what costs will usually cover, and important considerations to keep in mind as a tenant or leaseholder:

Understanding who pays service charges and what they typically cover is essential for anyone renting or leasing a property in Cardiff. Reviewing these costs beforehand ensures you can budget effectively and avoid unexpected expenses during your tenancy or leasehold ownership.

What Are My Rights as a Renter in Wales Under the Renting Homes Act?

The Renting Homes (Wales) Act 2016 brought changes for both tenants and landlords in an effort to simplify the housing law in Wales. Now, there is one standard set of rights and responsibilities for all tenants:

The Key Rights Under the Renting Homes Act

• Standard Occupation Contracts

All renters in Wales now receive a clear written contract known as a standard occupation contract. This new written contact clearly outlines your tenancy terms, rent, and responsibilities, making it easier to understand what is expected of both you and your landlord. This introduction was to help reduce any confusion around agreements for homes for rent in Cardiff and greater Wales.

• Fitness for Human Habitation

Landlords must provide properties that are safe and well-maintained. This includes addressing issues like damp, mould, electrical faults, or structural damage. Renters can be confident that property for rent in Cardiff will meet the minimum habitability standards.

• Protection Against Retaliatory Eviction

Tenants cannot be evicted for requesting repairs, reporting disrepair, or exercising their legal rights. This protection ensures renters feel secure when raising concerns with their landlord about their property to rent in Cardiff.

• Notice Periods and Eviction Procedures

The Act standardises the notice periods and procedures that landlords must follow to evict tenants. This provides clarity, predictability, and security, so renters know exactly what to expect if issues arise with their tenancy.

• Succession Rights

In the event of a tenant’s death, certain family members may be entitled to succeed the tenancy. This ensures continuity of occupation and helps maintain housing stability.

This legislation has been in place since December 2022 and applies to anyone renting in Wales. For full details, see the official Renting Homes (Wales) Act 2016 guidance.

Should I Check If My Landlord Is a Leaseholder?

Yes, when searching for property to rent, it’s important to understand who legally owns the building. Asking questions like “is a leaseholder a landlord?” and “who is the landlord of a leasehold property?” can help you clarify the responsibilities for maintenance, service charges, and legal obligations.

However, it is important to note that leaseholders may not always manage the day-to-day running of the building. Instead, a managing agent or freeholder might oversee maintenance and communal costs.

As such, knowing whether your landlord is a leaseholder can help you:

• Confirm who to contact for repairs and emergencies.
• Understand your liability for service charges.
• Ensure your tenancy agreement accurately reflects your responsibilities.

Before signing a lease, it is essential to ask for documentation confirming the landlord’s status and request details of who manages the property.

What Should I Check Before Renting a Flat in Cardiff?

Before signing a tenancy, it’s important to complete preliminary checks of both the property and your tenancy agreement. From inspecting the property’s condition to understanding ongoing service charges, it’s important to know your legal responsibilities and costs to ensure your new home truly meets your needs.

While the specifics of what to check for when renting a flat in Cardiff may depend on your own personal lifestyle and checklist for Cardiff, we have provided a general checklist of key points to follow:

• Tenancy Agreement Details: Ensure the rent, deposit, and contract length are clearly stated.
• Service Charges and Bills: Clarify whether you’re responsible for service charges, utilities, or council tax.
• Property Condition: Inspect for damp, mould, structural issues, and functioning appliances.
• Safety Requirements: Confirm gas safety certificates, smoke alarms, and electrical checks are in place.
• Access and Amenities: Check communal areas, parking, transport links, and local services.
• Landlord Information: Verify whether the landlord is a leaseholder, freeholder, or managed by an agent.

Who Can Help With Renting Issues in Cardiff?

If you are experiencing or fearful of renting issues in Cardiff, you can receive help from Citizens Advice, Rent Smart Wales, Cardiff Council, or tenant support charities. Each of these services aims to help resolve disputes over service charges, repairs, and tenancy agreements.

It’s come with no surprise that renting can sometimes lead to disputes. But knowing who can help with rent issues with the landlord can stop problems from escalating and help find a solution.

It is best practice to always keep written records of correspondence with landlords, and report issues promptly. Early action can save time, money, and stress. If you’re dealing with rent issues with the landlord, these trusted organisations in Cardiff can offer expert advice and practical support:

• Rent Smart Wales

Provides licensing and regulation of landlords, ensuring they meet legal obligations. They offer guidance on tenant rights and can take enforcement action if landlords fail to comply.

• Shelter Cymru

Offers tailored advice on tenancy disputes, housing rights, and support for those facing eviction or homelessness. They also provide practical tips on negotiating repairs or challenging unfair rent increases.

• Citizens Advice Cardiff & Vale

Provides guidance on tenancy agreements, dispute resolution, benefits, and budgeting. They help tenants document issues effectively and know when to escalate complaints.

Can a Mortgage Broker Help If I’m Just Renting in the UK?

With rising rent prices, plus the added strain of leasehold costs, service charges, and other tenant obligations, many renters are finding that paying off a mortgage can actually be cheaper. This shift not only reduces monthly costs but also moves them closer to the milestone of true homeownership.

And so, even if you’re currently renting, exploring your mortgage options in Cardiff could be the first step towards cheaper monthly bills and hitting that milestone of owning your own home.

At Boon Brokers, we specialise in guiding renters who are ready to take the next step on the property ladder. Our dedicated mortgage advisers take the time to understand your financial situation and can help you:

• Assess your borrowing potential while renting.
• Understand schemes like the Right to Buy scheme.
• Compare mortgage products across the whole market to find the best options.
• Navigate fees, deposits, and eligibility requirements with tailored advice.

As a fee-free, whole-of-market mortgage broker, Boon Brokers provides unbiased guidance, ensuring you have access to the most competitive mortgage deals available.

Contact Boon Brokers today to receive tailored advice from a dedicated mortgage adviser and make your move from renting to owning your dream home.