Frequently Asked Questions About Block Management
Find answers to the most common questions about block management, service charges, leaseholder rights, building maintenance, and switching managing agent.
Block Management Basics
What is a block management company?
A block management company is a professional firm appointed to manage the communal areas, finances, and maintenance of a block of flats on behalf of the freeholder or residents' management company. They handle service charge collection, contractor management, insurance, and compliance with legal obligations to ensure the building runs smoothly for all residents.
How does block management work?
Block management works by appointing a managing agent to oversee the property on behalf of the freeholder or residents' management company. The agent manages service charge budgets, arranges building maintenance and repairs, ensures legal compliance, handles insurance, and communicates with leaseholders as the central point of contact.
What does block management include?
Block management typically includes service charge administration, building maintenance, communal cleaning, buildings insurance, health and safety compliance, contractor procurement, leaseholder communication, financial reporting, and Section 20 consultations for major works.
How much does block management cost?
Block management fees vary depending on the size of the development, the number of units, and services required. Typical fees range from around 8 to 15 pounds per unit per week. Costs are included within the service charge. Contact us or call 0161 371 7190 for a tailored, no-obligation quote.
What is the difference between block management and property management?
Block management specifically relates to managing communal areas and shared services in a multi-unit building such as a block of flats. Property management is a broader term that can include managing individual rental properties, dealing with tenants, and handling lettings. Block management focuses on the fabric of the building, service charges, insurance, and compliance for all leaseholders collectively.
Can residents change their block management company?
Yes, residents can change their block management company. Leaseholders may exercise their Right to Manage under the Commonhold and Leasehold Reform Act 2002 to take control without proving fault. Alternatively, they can apply to a First-tier Tribunal to appoint a new manager. Learn about switching managing agent.
Service Charges & Fees
How is a service charge calculated?
Service charges are calculated based on the estimated costs of maintaining the building and providing communal services over the coming year. This includes cleaning, repairs, insurance, management fees, and reserve fund contributions. Each leaseholder pays a proportion defined in their lease, often based on floor area or a fixed percentage.
What is a reasonable service charge for a flat?
A reasonable service charge varies by building size, age, location, and services provided. In the UK, annual service charges typically range from 1,000 to 5,000 pounds for a standard flat, though they can be higher for developments with lifts, concierge services, or extensive grounds. All charges must be reasonably incurred. Learn about our transparent approach.
Can I refuse to pay my service charge?
Leaseholders are legally obligated to pay service charges as set out in their lease. You can challenge charges you believe are unreasonable by applying to the First-tier Tribunal (Property Chamber). Simply refusing to pay can lead to debt recovery action and potentially forfeiture of your lease. Raise concerns formally with your managing agent first.
What is the 18-month rule for service charge demands?
Under Section 20B of the Landlord and Tenant Act 1985, a landlord cannot recover service charge costs if the demand is made more than 18 months after the costs were incurred, unless the leaseholder was notified within that period that costs had been incurred and would be demanded. This protects leaseholders from unexpected historic charges.
Do service charge accounts need to be audited?
While a formal audit is not always legally required, leaseholders have the right under Section 21 of the Landlord and Tenant Act 1985 to request a summary of costs and inspect accounts and receipts. An independent audit is considered best practice for larger developments. Our service charge management includes transparent, professionally prepared accounts.
What is a sinking fund or reserve fund?
A sinking fund (also called a reserve fund) is money set aside by leaseholders through the service charge to cover future major works and unexpected repairs, such as roof replacement or lift refurbishment. Building up a reserve fund over time avoids the need for large one-off payments when significant work is required. It is considered best practice for well-managed buildings.
Leaseholder & Freeholder Rights
What are leaseholder rights?
Leaseholders have statutory rights including the right to be consulted on major works (Section 20), the right to request a service charge summary, the right to manage their building, the right to a lease extension, and the right to collectively purchase the freehold. See our full guide on freeholder and leaseholder rights.
What are a freeholder's responsibilities?
Freeholders are responsible for maintaining the building's structure and exterior, arranging buildings insurance, managing communal areas, ensuring health and safety compliance, and administering service charges fairly. Many freeholders appoint a block management company to fulfil these obligations professionally.
What is the difference between a freeholder and a leaseholder?
A freeholder owns the building and the land outright, indefinitely. A leaseholder owns the right to occupy a flat for a set period defined in their lease, which may be 99, 125, or 999 years. The freeholder retains responsibility for the building's structure, while leaseholders pay service charges for upkeep. For details, see our freeholder and leaseholder rights page.
Who pays for replacement windows in a leasehold flat?
This depends on the terms of your lease. If the windows form part of the building's structure or exterior, the freeholder is typically responsible and the cost is recovered through the service charge. If the lease specifies internal windows are the leaseholder's responsibility, the leaseholder pays. Always check your lease. Our leasehold management team can help clarify.
Who is responsible for a leak in a leasehold flat?
Responsibility depends on the source of the leak. If it originates from communal pipes or the building structure, the freeholder or managing agent is typically responsible. If it comes from within a leaseholder's flat, the leaseholder is usually responsible. Our building maintenance team handles emergency leak investigations promptly.
Will leasehold be abolished in the UK?
The Leasehold and Freehold Reform Act 2024 introduces significant changes including making it cheaper to extend leases and buy freeholds, but leasehold management has not been fully abolished for existing flats. New houses can no longer be sold as leasehold. Our leasehold management services stay up to date with all legislative changes to protect your interests.
Maintenance & Repairs
Who is responsible for repairs in a block of flats?
The freeholder or their appointed managing agent is responsible for repairing the building's structure, exterior, communal areas, and shared services. Leaseholders are typically responsible for internal repairs within their own flats as defined in their lease. Our building maintenance team coordinates all communal repairs.
What is classed as an emergency repair?
Emergency repairs are those posing an immediate risk to health, safety, or the building's fabric. These include burst pipes, major leaks, total loss of heating in winter, gas leaks, electrical faults posing fire risk, broken external doors compromising security, and dangerous structural damage. Our building maintenance team provides 24/7 emergency support for managed properties.
Who pays for roof repairs in a block of flats?
Roof repairs are typically the freeholder's responsibility, with costs recovered from leaseholders through the service charge. For major works, a Section 20 consultation is required if the cost per leaseholder exceeds 250 pounds. A well-maintained reserve fund helps spread these costs over time.
Who is responsible for damp in a block of flats?
If damp is caused by a structural defect, failing roof, or communal plumbing, the freeholder or managing agent is responsible. If caused by condensation or lack of ventilation within a flat, the leaseholder may be responsible. Our maintenance team can investigate the source and coordinate the appropriate repairs.
Does a block of flats need a fire risk assessment?
Yes. Under the Regulatory Reform (Fire Safety) Order 2005, the responsible person (typically the freeholder or managing agent) must carry out a fire risk assessment for all communal areas. This must be reviewed regularly and updated when significant changes occur. Fire safety compliance is a core part of our block management service.
Is emergency lighting required in communal areas?
Yes, emergency lighting is a legal requirement in the communal areas of blocks of flats under the Regulatory Reform (Fire Safety) Order 2005. It must be installed in escape routes, stairwells, and corridors to ensure safe evacuation during power failures. Regular testing and building maintenance are also required and are included in our management service.
Switching Managing Agent
How do I change my block management company?
You can change your managing agent by exercising the Right to Manage, by the freeholder terminating the current agent's contract, or through a First-tier Tribunal application. Our switching guide explains the process in detail. We handle hundreds of transitions each year.
What is the Right to Manage?
The Right to Manage (RTM) allows qualifying leaseholders to take over the management of their building by forming an RTM company under the Commonhold and Leasehold Reform Act 2002. No fault needs to be proven against the current manager. The RTM company can then appoint its own managing agent. Learn more on our Right to Manage page.
How long does it take to switch managing agent?
Switching managing agent typically takes between four and twelve weeks, depending on the complexity of the handover and the cooperation of the outgoing agent. The process includes transferring financial records, contracts, insurance policies, and building documentation. At Block, we manage the entire transition to minimise disruption for residents.
What should I look for in a new managing agent?
Look for a managing agent with relevant accreditations (such as ARMA, RICS, and IRPM), transparent pricing, named property managers, clear communication, and a strong track record. Ask for references from similar buildings and check they are members of an approved Property Redress Scheme. Our about page details our credentials and approach.
Will there be disruption when switching managing agent?
A well-managed transition should cause minimal disruption to residents. We handle the handover of all records, contracts, and financial data, and we communicate directly with leaseholders throughout the process. Our dedicated onboarding team ensures a seamless switch so that property management service continues without interruption. Contact us to discuss your situation.
Still Have Questions?
Our experienced property managers are here to help. Get in touch for expert advice on any block management matter or to request a free, no-obligation quote.