Freeholder Responsibilities: Complete Guide
A comprehensive guide to freeholder responsibilities, covering the legal responsibilities of a freeholder in the UK, including building maintenance, insurance, freeholder obligations to leaseholders, service charge compliance, freeholder responsibilities fire safety duties under the Building Safety Act 2022, and the appointment of a managing agent. Understand your duties and how to fulfil them.
What Are Freeholder Responsibilities?
Freeholder responsibilities encompass the full range of legal, financial, and practical obligations that a freeholder owes to the leaseholders in their building and to regulatory authorities. The freehold owner holds the ultimate title to the land and building, and with that ownership comes a duty to ensure the property is properly managed, maintained, and insured. These duties are defined by a combination of the terms of the individual leases, the common law of landlord and tenant, and a substantial body of statute including the Landlord and Tenant Act 1985 and the Building Safety Act 2022.
The scope of freeholder responsibilities UK law imposes is broad. A freeholder must maintain the structure and exterior of the building, arrange adequate buildings insurance, manage service charges transparently and lawfully, comply with health and safety regulations, and ensure that the building meets all applicable fire safety standards. Where a freeholder appoints a managing agent to carry out these functions on their behalf, the freeholder retains ultimate responsibility for ensuring the agent performs to the required standard. For a foundational understanding of the difference between freehold and leasehold ownership, see our freehold vs leasehold guide.
This guide sets out the key areas of freeholder obligations to leaseholders, explains the statutory framework that underpins them, and provides practical guidance on how freeholders can meet their duties effectively. Whether you are a new freeholder, an experienced landlord, or a leaseholder who wants to understand what you are entitled to expect from your freeholder, this page covers everything you need to know.
Building Maintenance and Repair Obligations
One of the most fundamental freeholder responsibilities is the obligation to maintain and repair the building. The precise scope of this duty is defined by the lease, but in most cases the freeholder is responsible for the structure, exterior, and common parts of the building. This is a core aspect of the legal responsibilities of a freeholder and one that directly affects every leaseholder in the block.
Structural and Exterior Repairs
The freeholder is typically responsible for maintaining the roof, foundations, external walls, guttering, downpipes, and any structural elements of the building. This includes carrying out planned preventative maintenance as well as responding to urgent repairs when damage occurs. A failure to maintain the structure can lead to water ingress, damp, and deterioration of the building fabric, which in turn affects the individual flats and reduces their value. Leaseholders who experience problems caused by the freeholder's failure to maintain the structure may have grounds to seek a remedy through the courts or the First-tier Tribunal.
Common Parts and Shared Areas
Beyond the structure itself, freeholder obligations to leaseholders extend to the maintenance of all common parts. This includes entrance halls, staircases, corridors, lifts, shared gardens, car parks, and any other areas that fall outside the individual demised premises. The freeholder must ensure that these areas are kept clean, safe, well-lit, and in a reasonable state of repair. The cost of maintaining the common parts is typically recovered through the service charge, but the obligation to carry out the work rests with the freeholder.
Section 20 Consultation Requirements
When the cost of maintenance or repair works exceeds the statutory threshold (currently more than two hundred and fifty pounds per leaseholder), the freeholder must comply with the Section 20 consultation process set out in the Landlord and Tenant Act 1985. This process requires the freeholder to notify leaseholders of the proposed works, invite observations, obtain multiple estimates, and give leaseholders the opportunity to nominate contractors. Failure to follow the Section 20 process limits the amount recoverable from each leaseholder to two hundred and fifty pounds, regardless of the actual cost of the works, unless a dispensation is granted by the First-tier Tribunal.
Proactive maintenance planning is essential for controlling long-term costs and preserving the value of the building. A freeholder who neglects maintenance obligations risks not only legal action from leaseholders but also the gradual deterioration of the property. A well-maintained building benefits everyone, protecting leaseholder investments, reducing emergency repair costs, and ensuring compliance with the freeholder's legal duties. Working with an experienced managing agent can help freeholders develop and implement an effective planned maintenance programme that meets both the requirements of the lease and the expectations of leaseholders.
Insurance Responsibilities
Arranging and maintaining adequate buildings insurance is one of the most important freeholder responsibilities. The obligation to insure the building is almost always set out in the lease, and the cost is passed to leaseholders through the service charge. Getting insurance right is critical because an inadequately insured building leaves all parties exposed to potentially catastrophic financial loss.
Adequate Cover and Reinstatement Value
The freeholder must ensure the building is insured for its full reinstatement value, which is the cost of completely rebuilding the property from scratch, including demolition, site clearance, professional fees, and compliance with current building regulations. This figure is different from the market value of the building and should be assessed by a qualified surveyor or through a reinstatement cost assessment. Underinsurance can leave leaseholders liable for a share of any shortfall if a major claim is made, which is why this is a critical element of freeholder responsibilities UK legislation governs closely.
Transparency and Leaseholder Rights
Under Section 30A and Schedule 1 of the Landlord and Tenant Act 1985, leaseholders have the right to request a written summary of the insurance policy, including the name of the insurer, the risks covered, and the amount of the premium. They also have the right to inspect the policy document itself. Freeholders must respond to these requests within a reasonable time. The legal responsibilities of a freeholder include ensuring that insurance is arranged on competitive terms and that any commissions received from insurance brokers are disclosed to leaseholders. If leaseholders believe the insurance premium is unreasonable, they can challenge it through the First-tier Tribunal.
Claims Management
The freeholder is responsible for managing insurance claims on behalf of the building. This includes notifying the insurer promptly when damage occurs, coordinating access for loss adjusters, overseeing repair works funded by the insurer, and ensuring that claims are settled fairly and efficiently. Poor claims management can result in delays to essential repairs and additional costs that ultimately fall on the leaseholders. An experienced block management company can assist with navigating the claims process and ensuring that the building is restored to its pre-loss condition as quickly as possible.
Service Charge Compliance and Accounts
Managing the service charge correctly is one of the most regulated areas of freeholder responsibilities. The Landlord and Tenant Act 1985 imposes strict requirements on how service charges are demanded, collected, accounted for, and spent. Non-compliance with these requirements can render charges irrecoverable and expose the freeholder to challenge by leaseholders.
Demanding Service Charges
Service charge demands must comply with the requirements of Section 47 and Section 48 of the Landlord and Tenant Act 1987, which require the demand to include the landlord's name and address and an address in England and Wales for the service of notices. Demands must also be accompanied by a summary of leaseholder rights and obligations as prescribed by regulations. If a demand does not comply with these requirements, the service charge is not payable until a compliant demand is served. Demands must be issued within 18 months of costs being incurred, as required by Section 20B. For a detailed overview of service charge law, see our service charge guide.
Accounting and Transparency
The freeholder must provide leaseholders with an annual summary of service charge costs within six months of the end of the accounting period, as required by Section 21 of the Landlord and Tenant Act 1985. Where the building contains more than four dwellings, the summary must be certified by a qualified accountant. Leaseholders also have the right under Section 22 to inspect the accounts, receipts, and other documents supporting the service charge summary. Service charge funds must be held in a designated trust account, separate from the freeholder's own money. These requirements exist to ensure transparency and to protect leaseholders from mismanagement of their contributions.
Reasonableness of Charges
Section 19 of the Landlord and Tenant Act 1985 requires that service charge costs must be reasonably incurred and that any works or services paid for through the service charge must be carried out to a reasonable standard. This means the freeholder cannot recover costs that are excessive, unnecessary, or that result from poor procurement practices. Leaseholders who believe their service charges are unreasonable can apply to the First-tier Tribunal for a determination under Section 27A. The freeholder obligations to leaseholders in relation to service charges are among the most tightly regulated aspects of leasehold property management in the UK.
Fire Safety and Building Safety Act Duties
Freeholder responsibilities fire safety obligations have been significantly expanded in recent years following the Grenfell Tower tragedy and the subsequent legislative reforms. The freeholder, as the responsible person under fire safety legislation, has a duty to assess and manage fire risks in the building and to comply with the requirements of the Regulatory Reform (Fire Safety) Order 2005, the Fire Safety Act 2021, and the Building Safety Act 2022. For a detailed overview, see our fire safety guide.
Fire Risk Assessments
The freeholder must ensure that a suitable and sufficient fire risk assessment is carried out for the building and that it is regularly reviewed and updated. The Fire Safety Act 2021 clarified that the scope of the fire risk assessment extends to the structure and external walls of the building, including cladding systems and balconies, as well as individual flat entrance doors. The assessment must be carried out by a competent person and must identify the fire hazards, evaluate the risks, and recommend appropriate measures to reduce or eliminate those risks. The freeholder must act on the findings of the assessment and keep a written record of the assessment and the actions taken.
Building Safety Act 2022 Duties
The Building Safety Act 2022 introduced a new regulatory regime for higher-risk buildings, defined as residential buildings at least 18 metres in height or with at least seven storeys containing two or more residential units. Freeholders of these buildings must register with the Building Safety Regulator, apply for a building assessment certificate, and prepare and maintain a safety case report that demonstrates how fire and structural safety risks are being managed. The Act also created a new duty on all building owners to manage building safety risks and established the role of the Accountable Person, who in most cases will be the freeholder. Non-compliance with the Building Safety Act can result in criminal prosecution, compliance notices, and significant financial penalties.
Ongoing Fire Safety Management
Beyond the initial fire risk assessment, freeholder responsibilities fire safety duties include the ongoing management of fire safety measures within the building. This encompasses the regular testing and maintenance of fire detection and alarm systems, emergency lighting, fire doors, dry risers, sprinkler systems, and any other fire safety installations. The freeholder must ensure that escape routes are kept clear and unobstructed, that fire safety signage is in place and visible, and that residents are provided with relevant fire safety information. The cost of fire safety compliance is typically recovered through the service charge, but the responsibility for ensuring that these measures are in place rests firmly with the freeholder.
Appointing and Supervising a Managing Agent
Many freeholders appoint a professional block management company to carry out the day-to-day management of their building on their behalf. While delegating management functions to an agent is common and often advisable, it does not transfer the freeholder's underlying legal obligations. The freeholder remains ultimately responsible for ensuring that all freeholder responsibilities are fulfilled to the required standard.
- Selecting a managing agent who is a member of a recognised professional body such as RICS or ARMA
- Ensuring the agent holds appropriate professional indemnity insurance and client money protection
- Agreeing a clear management contract that sets out the scope of services, fees, and performance standards
- Monitoring the agent performance regularly, including reviewing service charge accounts and maintenance reports
- Ensuring the agent complies with all statutory requirements including Section 20 consultations and service charge accounting
- Responding promptly to leaseholder complaints about the agent performance and taking corrective action where necessary
- Reviewing the management arrangements periodically and considering whether the agent continues to deliver value for money
- Ensuring the agent maintains proper records and provides transparent reporting to both the freeholder and leaseholders
Choosing the right managing agent is one of the most impactful decisions a freeholder can make. A competent and experienced agent will ensure that the building is well maintained, that service charges are managed transparently, that fire safety and Building Safety Act duties are met, and that leaseholder relations are handled professionally. For more information about what a block management company does and how to choose one, visit our block management page.
Frequently Asked Questions About Freeholder Responsibilities
What are the legal responsibilities of a freeholder in the UK?
The legal responsibilities of a freeholder in the UK are extensive and arise from a combination of the lease terms, common law, and statutory obligations. At their core, freeholder responsibilities include maintaining the structure and exterior of the building, arranging adequate buildings insurance, managing service charges in accordance with the Landlord and Tenant Act 1985, and ensuring compliance with health and safety legislation including fire safety regulations. Freeholders must also comply with the consultation requirements under Section 20 of the Landlord and Tenant Act 1985 before carrying out qualifying works or entering into qualifying long-term agreements. Failure to meet these obligations can result in legal action by leaseholders, regulatory enforcement, and financial penalties. The Building Safety Act 2022 has introduced additional duties for freeholders of higher-risk buildings, making it more important than ever to understand and fulfil these responsibilities.
What are a freeholder's obligations regarding building maintenance?
A freeholder is typically obligated under the terms of the lease to maintain the structure and exterior of the building, including the roof, foundations, external walls, and common parts such as hallways, staircases, and shared gardens. The precise scope of these obligations depends on what the lease says, but most leases impose a comprehensive repairing obligation on the freeholder. This means the freeholder must keep these areas in good repair, carry out necessary works promptly, and ensure that the building remains structurally sound and weathertight. If the freeholder fails to carry out essential repairs, leaseholders can apply to the First-tier Tribunal for a determination that service charges have not been properly applied, or they can seek an order compelling the freeholder to carry out the work. Persistent neglect of maintenance obligations can also support a right-to-manage application by leaseholders.
Is the freeholder responsible for buildings insurance?
Yes, in the vast majority of cases the freeholder is responsible for arranging buildings insurance for the entire block. This obligation is usually set out in the lease and the cost of the insurance premium is recovered from leaseholders through the service charge. The freeholder must ensure that the insurance policy provides adequate cover for the full reinstatement value of the building, including cover for risks such as fire, flood, storm damage, subsidence, and public liability. Under Section 30A and Schedule 1 of the Landlord and Tenant Act 1985, leaseholders have the right to request a summary of the insurance policy and to inspect the policy document and any associated receipts. Freeholders must arrange insurance on reasonable terms and should not profit from insurance commissions without transparency. If leaseholders believe the insurance arrangements are unreasonable, they can challenge the costs through the First-tier Tribunal.
What are a freeholder's fire safety responsibilities?
Freeholder responsibilities for fire safety are governed primarily by the Regulatory Reform (Fire Safety) Order 2005 and the Fire Safety Act 2021, which clarified that the Order applies to the structure, external walls, and individual flat entrance doors in multi-occupied residential buildings. The freeholder, as the responsible person or duty holder, must carry out a suitable and sufficient fire risk assessment, implement and maintain appropriate fire safety measures, ensure that fire detection and alarm systems are properly installed and regularly tested, maintain fire escape routes and emergency lighting, and keep records of all fire safety actions taken. The Building Safety Act 2022 introduced further duties for freeholders of higher-risk buildings, including the requirement to register with the Building Safety Regulator and prepare a safety case report. Non-compliance with fire safety obligations can result in enforcement notices, prosecution, and unlimited fines.
Can leaseholders take action against a freeholder who neglects their responsibilities?
Yes, leaseholders have several legal avenues available when a freeholder neglects their responsibilities. They can apply to the First-tier Tribunal (Property Chamber) for a determination on whether service charges have been reasonably incurred or whether the standard of services and maintenance is acceptable. Leaseholders can also exercise the Right to Manage under the Commonhold and Leasehold Reform Act 2002, which allows them to take over the management of the building without having to prove fault on the part of the freeholder. In cases of serious or persistent neglect, leaseholders can apply to the Tribunal for the appointment of a manager under Section 24 of the Landlord and Tenant Act 1987, which effectively replaces the freeholder in the day-to-day management of the building. Additionally, leaseholders can pursue claims for breach of covenant through the county court if the freeholder has failed to comply with the repairing or maintenance obligations set out in the lease.
What are a freeholder's responsibilities regarding service charges?
A freeholder has extensive responsibilities when it comes to service charges. Under the Landlord and Tenant Act 1985, all service charge costs must be reasonably incurred and any works or services paid for through the service charge must be carried out to a reasonable standard. The freeholder must issue service charge demands that comply with the statutory requirements, including providing the landlord name and address and a summary of the leaseholder rights and obligations. Demands must be issued within 18 months of the costs being incurred, as required by Section 20B of the Act. The freeholder must also provide leaseholders with an annual summary of costs within six months of the end of the accounting period, and this summary must be certified by a qualified accountant where the building contains more than four dwellings. Service charge funds must be held in trust and kept separate from the freeholder personal accounts. Failure to comply with these requirements can render service charges uncollectable and expose the freeholder to legal challenge.
Need Help With Freeholder Responsibilities?
Whether you are a freeholder looking for professional support in meeting your freeholder obligations to leaseholders, a leaseholder who wants to understand what your freeholder should be doing, or you need expert advice on freeholder responsibilities fire safety compliance and the Building Safety Act, Block is here to help. Our experienced team manages buildings nationwide, ensuring that every freeholder responsibility is met to the highest standard.