Freeholder Responsibilities to Leaseholders Explained
A comprehensive guide to freeholder responsibilities, covering the legal responsibilities of a freeholder, insurance obligations, building maintenance, fire safety duties, and the key differences between freeholder vs leaseholder obligations. Understand what your freeholder is required to deliver and how to hold them accountable.
What Are Freeholder Responsibilities?
Freeholder responsibilities are the legal and practical obligations that the owner of the freehold interest in a building owes to the leaseholders who occupy the individual flats within it. These freeholder obligations to leaseholders are established by the terms of the lease, by statute including the Landlord and Tenant Act 1985 and the Building Safety Act 2022, and by common law principles of care and diligence.
Whether the freehold is held by an individual landlord, a property investment company, or a freehold management company owned by the leaseholders themselves, the legal responsibilities of a freeholder remain the same. The freeholder must ensure the building is properly maintained, adequately insured, compliant with all health and safety legislation, and that service charge funds are administered transparently and fairly.
At Block, we act on behalf of freeholders and leaseholders alike to ensure every freeholders responsibility is met to the highest professional standard. This guide sets out the key obligations in detail, so you know exactly what to expect from your freeholder or managing agent.
Buildings Insurance Obligations
One of the most fundamental freeholder responsibilities is arranging and maintaining adequate buildings insurance for the entire property. The freeholder must ensure the building is insured for its full reinstatement value, covering risks such as fire, flood, storm damage, subsidence, and public liability. This obligation protects every leaseholder in the building and is typically a requirement of both the lease and individual mortgage conditions.
Under the Leasehold and Freehold Reform Act 2024, freeholders are now required to provide greater transparency around insurance arrangements, including disclosing any commissions received from insurance brokers or providers. Leaseholders have the right to request a copy of the insurance policy and to be informed of the level of cover, the premium, and any commissions paid.
At Block, we arrange competitive block insurance through specialist brokers, ensuring comprehensive cover at the best available premium. We operate with full transparency on all insurance commissions and provide every leaseholder with access to the policy details. Proper insurance is not just a legal requirement - it is the foundation of responsible freehold management.
Maintenance and Structural Repair Obligations
The freeholder is responsible for maintaining the structure and exterior of the building, the communal areas, and the shared services and installations. This is one of the core freeholder responsibilities to leaseholders and is set out in the lease and reinforced by the Landlord and Tenant Act 1985. Structural repair obligations typically include the roof, external walls, foundations, communal staircases, hallways, lifts, and shared drainage systems.
The cost of maintenance and repairs is usually recovered from leaseholders through the service charge, but the obligation to procure the work, appoint competent contractors, and ensure the work is carried out to a reasonable standard rests with the freeholder. For major works exceeding the qualifying threshold, the freeholder must follow the Section 20 consultation process, giving leaseholders the opportunity to comment on proposed works and nominate alternative contractors.
A well-managed building has a planned maintenance programme that anticipates future repair needs and spreads the cost over time through a sinking fund or reserve fund. Reactive-only maintenance leads to higher long-term costs and a deteriorating building. Our building maintenance service includes regular building inspections, planned preventative maintenance schedules, and a 24/7 emergency repair service.
Building Safety Act Compliance
The Building Safety Act 2022 introduced significant new freeholder responsibilities for higher-risk residential buildings, defined as those at least 18 metres in height or with at least seven storeys and containing two or more residential units. Under the Act, the freeholder as the "Accountable Person" must register the building with the Building Safety Regulator, prepare and maintain a safety case report, and establish a resident engagement strategy.
Even for buildings that do not meet the higher-risk threshold, the Act reinforces the general duty on freeholders to manage building safety risks proactively. All freeholders must ensure their buildings comply with current fire safety regulations, maintain adequate records of the building construction and safety systems, and respond promptly to any safety concerns raised by leaseholders or the regulator.
The Act also provides important protections for leaseholders. In many cases, leaseholders in buildings with defective cladding or other historical building safety defects are protected from bearing remediation costs, with the financial burden falling on the developer, freeholder, or government-funded schemes. Understanding these protections is essential for both freeholders and leaseholders in affected buildings.
Block ensures full compliance with the Building Safety Act across every building we manage. For higher-risk buildings, we prepare and maintain the required safety case documentation, manage the registration process, and implement ongoing resident engagement programmes. Our dedicated compliance team stays up to date with all regulatory developments to ensure our clients are always ahead of their obligations.
Fire Safety Duties
Fire safety is one of the most critical freeholder obligations to leaseholders. Under the Regulatory Reform (Fire Safety) Order 2005, as amended by the Fire Safety Act 2021, the freeholder or their appointed managing agent is the "Responsible Person" for fire safety in the communal parts of the building. This includes the obligation to carry out a suitable and sufficient fire risk assessment, implement the findings, and review the assessment regularly.
The legal responsibilities of a freeholder in relation to fire safety extend to maintaining fire detection and alarm systems, ensuring fire escape routes are clear and properly signed, providing adequate emergency lighting, maintaining fire doors in communal areas, and ensuring any dry or wet riser systems are serviced and tested. The freeholder must also ensure that all residents are informed of the building fire safety strategy, whether that is simultaneous evacuation or a stay-put policy.
Our fire safety service covers every aspect of the freeholder fire safety obligations. We arrange annual fire risk assessments carried out by competent assessors, manage the remediation of any identified deficiencies, and maintain comprehensive fire safety records for every building in our portfolio. Fire safety is not an area where any freeholder can afford to be complacent - the consequences of non-compliance can be severe, including criminal prosecution, unlimited fines, and personal liability for directors.
Service Charge Obligations
Administering service charges fairly and transparently is a key freeholder responsibility. Under Section 19 of the Landlord and Tenant Act 1985, service charges must be reasonably incurred and the work or services must be carried out to a reasonable standard. The freeholder must provide an annual summary of costs and expenditure to every leaseholder and make the supporting accounts, receipts, and invoices available for inspection on request.
For qualifying works exceeding the statutory threshold or qualifying long-term agreements, the freeholder must follow the Section 20 consultation process. This requires serving formal notices on leaseholders, inviting observations and nominations of alternative contractors, and considering those responses before proceeding. Failure to comply with the consultation requirements limits the amount that can be recovered from each leaseholder.
At Block, our approach to service charge management is built on complete transparency. Every charge is fully itemised, budgets are prepared in consultation with directors and leaseholders, and independently certified service charge accounts are distributed within the statutory timeframe. We believe that transparent financial management is one of the most important freeholder responsibilities to leaseholders, and we hold ourselves to the highest standards in this area.
Freeholder vs Leaseholder: Who Is Responsible for What?
Understanding the difference between freeholder vs leaseholder responsibilities is essential for anyone living in or managing a leasehold building. The lease is the legal document that defines the precise division of obligations, but the following is a general guide to the typical split of responsibilities. For a detailed explanation of your rights as a leaseholder, see our leaseholder rights guide.
Freeholder Responsibilities
- Structure and exterior of the building (roof, walls, foundations)
- Communal areas including hallways, staircases, and landings
- Shared services such as lifts, drainage, and water supply
- Buildings insurance for the whole property
- Fire safety compliance and risk assessments
- Building Safety Act obligations for higher-risk buildings
- Service charge administration and financial transparency
- Section 20 consultation for major works
Leaseholder Responsibilities
- Internal decoration and maintenance of the flat
- Fixtures, fittings, and appliances within the demised premises
- Payment of service charges and ground rent when due
- Compliance with lease covenants (noise, subletting, alterations)
- Contents insurance for personal belongings
- Obtaining consent for structural alterations
- Reporting maintenance issues in communal areas promptly
- Cooperating with building access for repairs and inspections
Frequently Asked Questions About Freeholder Responsibilities
Are freeholders responsible for repairs?
Yes. Freeholders are legally responsible for maintaining and repairing the structure and exterior of the building, including the roof, foundations, external walls, and shared drainage. This obligation is typically set out in the individual leases and reinforced by Section 11 of the Landlord and Tenant Act 1985. The cost of these repairs is usually recovered from leaseholders through the service charge, but the duty to arrange and carry out the work rests with the freeholder. If a freeholder fails to carry out necessary repairs, leaseholders can apply to the First-tier Tribunal or take legal action to compel compliance.
What are the legal obligations of a freeholder?
The legal obligations of a freeholder include maintaining the structure and exterior of the building, arranging adequate buildings insurance, ensuring compliance with health and safety legislation including fire safety regulations, consulting leaseholders before carrying out major works or entering into long-term agreements under Section 20 of the Landlord and Tenant Act 1985, providing transparent service charge accounts, and complying with the Building Safety Act 2022 for higher-risk buildings. Freeholders must also ensure the building meets all current regulatory standards and must not unreasonably withhold consent for lease assignments or alterations where the lease permits them.
Is the freeholder responsible for the roof and windows?
In most leasehold buildings, the freeholder is responsible for the roof, external walls, and the structural elements of the building. Responsibility for windows depends on the specific terms of each lease. In many leases, the external windows form part of the structure and are therefore the freeholder responsibility, with costs recovered through the service charge. However, some leases demise the windows to the individual leaseholder, making the flat owner responsible for their own windows. It is essential to check the lease carefully and consult a managing agent or solicitor to confirm the position for your specific building.
Can you sue a freeholder for negligence?
Yes, leaseholders can take legal action against a freeholder who has been negligent in carrying out their obligations. If a freeholder fails to maintain the building structure, allows the property to fall into disrepair, or does not comply with health and safety legislation, leaseholders may have grounds to claim for losses suffered as a result. Before pursuing court action, leaseholders should raise the issue in writing with the freeholder or their managing agent, consider mediation, and if necessary apply to the First-tier Tribunal. Legal advice from a solicitor specialising in leasehold property is recommended before commencing proceedings.
What is the difference between freeholder and leaseholder responsibilities?
The freeholder owns the freehold interest in the building and is responsible for maintaining the structure, exterior, communal areas, and shared services. The freeholder must arrange buildings insurance, comply with fire safety and building safety regulations, and manage service charge funds transparently. The leaseholder owns a lease granting the right to occupy a specific flat for a fixed term. Leaseholder responsibilities typically include maintaining the interior of their flat, paying service charges and ground rent, complying with lease covenants such as noise restrictions and subletting rules, and obtaining consent for alterations. The lease defines the precise division of responsibilities between the freeholder and leaseholder.
What happens if a freeholder does not maintain the building?
If a freeholder fails to maintain the building, leaseholders have several legal remedies. They can apply to the First-tier Tribunal (Property Chamber) for an order requiring the freeholder to carry out repairs. Leaseholders may also apply to the tribunal for the appointment of a manager to take over management functions from the freeholder. In serious cases, leaseholders can exercise the right to manage under the Commonhold and Leasehold Reform Act 2002, or pursue collective enfranchisement to acquire the freehold. Where a freeholder breach has caused financial loss or damage to property, leaseholders may also bring a claim for damages through the county court.
Need Help With Freeholder Responsibilities?
Whether you are a freeholder seeking professional management support or a leaseholder concerned about your freeholder meeting their obligations, our experienced team is here to help. We ensure every freeholder responsibility is fulfilled to the highest standard.