Leaseholders dealing with long-standing repair problems usually ask the same question:
“Can I claim compensation for this?”
The answer is: sometimes, but not automatically.
Compensation in leasehold disrepair cases depends on:
- What the lease says
- Whether the landlord is responsible
- Whether proper notice was given
- Whether there has been a breach
- Whether loss can be proved
It also depends on something that is often overlooked:
Does the leaseholder live in the flat, or is it let to a tenant?
That distinction can significantly affect the type and value of any claim.
In this blog, our leasehold disrepair specialists explain how compensation works in long lease disrepair claims.
The Starting Point: Breach of Repairing Covenant
Leasehold disrepair claims are usually contractual. They are based on a breach of a repairing covenant in the lease.
Before compensation becomes relevant, three issues normally need to be established:
- The lease places responsibility for the defect on the landlord.
- The landlord had notice of the defect (or should reasonably have known about it).
- The landlord failed to carry out repairs within a reasonable time.
If these elements are not established, a compensation claim is unlikely to succeed.
What Type of Compensation Can Be Claimed?
Compensation in leasehold disrepair claims is generally intended to put the leaseholder back in the position they would have been in had the breach not occurred. It is not punitive (not designed to punish the landlord).
Common categories of loss include:
- Loss of amenity
- Inconvenience and discomfort
- Damage to belongings
- Financial losses caused by disrepair
Each must be supported by evidence.
Owner-Occupiers: Loss of Amenity and Inconvenience
Where a leaseholder lives in their flat, the impact of disrepair can be personal and immediate. If the roof leaks, damp spreads, or communal areas become unsafe, the leaseholder may suffer:
- Reduced enjoyment of their home
- Disruption to daily life
- Inability to use parts of the property
- Ongoing discomfort
Courts recognise that prolonged disrepair can reduce the amenity of a property.
Damages for loss of amenity are assessed and reference to:
- The seriousness of the defect
- The duration of the problem
- The extent of interference with normal living
Examples include:
- Living with persistent mould in bedrooms
- Using buckets to catch water from ceiling leaks
- Being unable to use a room due to damp
In such cases, compensation may reflect the lived experience of the disrepair. The longer the breach continues, the greater the potential award.
Damage to Belongings
Owner-occupiers may also recover compensation for physical damage caused by disrepair, such as:
- Furniture damaged by water ingress
- Clothing affected by mould
- Electrical items damaged by leaks
Evidence is essential and may including:
- Photographs
- Receipts or proof of value
- Evidence linking the damage to the defect
Leaseholders Who Let Their Flats: A Different Position
The position changes where the leaseholder does not live in the property but instead lets it to a tenant.
In that situation, the leaseholder has not personally experienced:
- Damp
- Inconvenience
- Disruption
- Reduced enjoyment
As a result, claims for loss of amenity and personal inconvenience are usually limited or unavailable.
The law compensates the claimant for loss actually suffered. If the leaseholder is not in occupation, they have not personally suffered inconvenience in the same way as an owner-occupier.
This does not mean no claim exists, but the nature of the recoverable loss is different.
What Can a Non-Occupying Leaseholder Claim?
A leaseholder who lets the flat may potentially claim for:
- Loss of rental income (if the property becomes unlettable)
- Reduction in rental value during disrepair
- Costs incurred in addressing the defect
- Professional fees (where appropriate)
These losses must be:
- Proven
- Directly linked to the landlord’s breach
- Supported by documentary evidence
Loss of amenity damages, common in owner-occupier cases, are generally minimal or unavailable where the leaseholder does not live in the property.
A Simple Comparison
Two identical flats with identical roof leaks may produce very different damages depending on occupation:
- An owner-occupier living with damp for 18 months may claim for loss of amenity and inconvenience.
- An investor landlord may only be able to claim proven financial losses.
Occupation status matters.
When the Leaseholder Is Also a Landlord
A more complex situation arises where:
- The leaseholder lets the flat to a tenant, and
- The tenant brings a housing disrepair claim, and
- The underlying defect relates to the structure or roof, which is the freeholder’s responsibility.
This scenario is increasingly common.
The Leaseholder Landlord’s Legal Exposure
Even where the structural defect is the freeholder’s responsibility under the long lease, the leaseholder remains responsible to their tenant under:
- Section 11 of the Landlord and Tenant Act 1985 (for qualifying tenancies), and
- The tenancy agreement.
The tenant’s legal relationship is with their immediate landlord, the leaseholder, not the freeholder. As a result, the tenant may bring a disrepair claim directly against the leaseholder landlord.
The risk
If:
- The roof leaks due to the freeholder’s failure to repair, and
- The tenant suffers damp and mould,
the tenant may pursue:
- Damages for loss of amenity
- Compensation for inconvenience
- Claims for rent repayment
- Legal costs
The leaseholder landlord may face liability even though the root cause lies with the freeholder.
Can the Leaseholder Recover from the Freeholder?
In some cases, the leaseholder may have a claim against the freeholder for breach of repairing covenant.
This may involve:
- Bringing a separate claim
- Seeking contribution or indemnity
- Relying on repairing provisions in the lease
However, this is not automatic. It depends on:
- The lease wording
- The evidence
- Procedural handling
Delay can increase exposure and complicate recovery.
Practical Considerations for Leaseholders Who Let Their Flats
Where a leaseholder landlord becomes aware of structural disrepair affecting a tenanted property, sensible steps often include:
- Giving prompt written notice to the freeholder
- Retaining copies of all communications
- Keeping clear records of tenant complaints
- Considering independent inspection if defects are serious
- Engaging constructively with both tenant and freeholder
Ignoring tenant complaints because “it’s the freeholder’s responsibility” can increase risk.
The leaseholder’s obligations to their tenant are separate from the freeholder’s obligations under the lease.
Insurance
Landlord insurance and building insurance may respond in some cases.
However:
- Policies vary
- Notification requirements apply
- Coverage depends on policy terms
Insurance does not remove legal repairing obligations.
Other Financial Losses
Leaseholders — whether in occupation or not — may also claim for:
- Professional fees reasonably incurred
- Expert reports necessary to establish defects
- Temporary accommodation in serious cases
All losses must be:
- Reasonably foreseeable
- Causally linked
- Properly evidenced
Limitation Periods
Leasehold disrepair claims are generally contractual in nature. Limitation periods apply, often six years from breach or date of knowledge of the breach. Where disrepair continues over time, arguments about continuing breach may arise. Delay can reduce recoverable damages.
Case Study: Leaseholder Compensation for Structural Disrepair
We recently acted for long leaseholders of a flat in North London who had experienced unresolved structural defects for over four years, including persistent damp, water ingress and defective balcony drainage.
Despite repeated complaints and ongoing service charge payments, the freeholder failed to carry out effective repairs. After reviewing the lease, gathering evidence and issuing a formal Letter Before Action, the matter was resolved without trial.
The freeholder agreed to complete the necessary works and our clients recovered £16,800 in compensation.
You can read the full case study here: Leaseholder Wins £16,800 Compensation Over Damp, Leaks, and Failed Repairs.
Do You Need Legal Advice About Leasehold Disrepair?
If you are a leaseholder experiencing unresolved structural or communal repair issues, early legal advice can clarify your position and protect your rights.
Whether you live in the property or let it to a tenant, understanding:
- Who is responsible under the lease
- Whether notice has been properly given
- What losses may be recoverable
is critical before taking formal steps.
Speak to Our Leasehold Disrepair Solicitors
At MJV Solicitors, we advise leaseholders across England and Wales on long lease disrepair claims, compensation and repairing covenant disputes.
If you would like a clear assessment of your position:
- Call us on 01253 858231
- Visit our website for more information about how to start your claim for Leasehold Disrepair
This article is for general information and does not constitute legal advice.
Frequently Asked Questions
Can I claim compensation if I do not live in the flat?
You may be able to claim proven financial losses, but claims for personal inconvenience are usually limited.
Can I claim for my tenant’s distress?
A leaseholder generally claims for their own loss. The tenant’s claim is separate.
What if my tenant sues me because of structural disrepair?
The tenant’s claim is against their immediate landlord. The leaseholder may need to pursue the freeholder separately if the defect falls within the freeholder’s repairing obligations.
Is compensation automatic once disrepair is proven?
No. Compensation depends on breach, notice, causation and evidence of loss.
Final Point
Leasehold disrepair compensation is not one-size-fits-all.
The key questions are:
- Who is responsible under the lease?
- Was notice given?
- What loss was actually suffered?
- Is the leaseholder in occupation?
The difference between an owner-occupier and an investor landlord can significantly affect the value and structure of any claim.
Early assessment of the lease and the factual position is critical.
To speak to a member of our team for a free, no-obligation discussion, please complete our enquiry form or contact us by calling 01253 858231 or emailing info@mjvlaw.co.uk
This blog post is not intended to be taken as legal advice or acted upon. If you require advice tailored to your circumstances, please contact our solicitors.
