Leasehold Management Services
Professional leasehold management that balances the rights and responsibilities of freeholders and leaseholders. We bring clarity to complex lease arrangements, ensure compliance with leasehold law, and protect the long-term value of your property investment.
What Does a Leasehold Management Company Do?
A leasehold management company acts as the professional intermediary between the freeholder and the leaseholders within a multi-unit building. Their role is to administer the lease obligations on behalf of the freeholder or residents management company, ensuring the building is properly maintained, financially sound, and compliant with all relevant legislation.
The scope of leasehold management is broad. It includes collecting and administering service charges, arranging block insurance, coordinating maintenance and repairs to communal areas, ensuring compliance with health and safety regulations, managing the Section 20 consultation process for major works, enforcing lease covenants, handling lease queries and disputes, and maintaining accurate records of all transactions and communications.
At Block, we bring specialist knowledge of leasehold law to every building we manage. Our property management professionals hold professional qualifications and receive regular training to stay current with legislative changes and industry best practice. This expertise ensures your building is managed in full compliance with the law and to the highest professional standards.
Lease Administration
Lease reviews, covenant enforcement, consent applications, deed of covenant processing, and maintaining the lease compliance register for every unit.
Financial Management
Service charge budgets, demand collection, arrears management, reserve fund planning, and independently certified annual service charge accounts.
Legal Compliance
Section 20 consultations, health and safety obligations, fire safety compliance, ground rent collection, and tribunal representation when required.
Leaseholder Rights and Responsibilities
Leaseholders in the UK benefit from a range of statutory protections that have been strengthened over several decades of leasehold reform. Understanding your rights empowers you to hold your managing agent and freeholder to account, while knowing your responsibilities ensures you fulfil your obligations under the lease.
At Block, we believe that informed leaseholders make for better- managed buildings. We encourage leaseholders to understand their rights and to engage actively with the block management of their building. Our transparent approach to communication and financial reporting makes this straightforward.
Key Leaseholder Rights
- Right to be consulted on major works and long-term agreements (Section 20)
- Right to request and inspect service charge accounts and receipts
- Right to challenge unreasonable charges at the First-tier Tribunal
- Right to Manage the building through an RTM company
- Right to collectively enfranchise and purchase the freehold
- Right to extend your lease by 90 years (currently) with no ground rent
- Right to appoint a surveyor to advise on service charge matters
Key Leaseholder Responsibilities
- Pay service charges and ground rent on time and in full
- Maintain the interior of the flat as specified in the lease
- Obtain consent before making structural alterations
- Comply with lease covenants regarding noise, pets, and subletting
- Notify the managing agent of any damage or defects observed
- Keep the building insurer informed of any relevant changes
- Provide access for inspections and maintenance when required
If you are unsure about your rights or obligations, our leasehold management team is available to provide guidance. We also recommend visiting the FAQ section on our website for answers to the most common leasehold questions.
Freeholder Responsibilities to Leaseholders
Freeholders have significant legal obligations to the leaseholders in their buildings. These responsibilities are set out in the lease and reinforced by statute, particularly the Landlord and Tenant Act 1985, the Commonhold and Leasehold Reform Act 2002, and the Building Safety Act 2022. A professional leasehold management company ensures that these obligations are met consistently and properly.
Many freeholders appoint a managing agent to discharge their obligations, but the ultimate responsibility remains with the freeholder. It is therefore essential to appoint a competent and trustworthy managing agent who will act diligently on your behalf. Block provides freeholders with the assurance that every statutory and contractual obligation is being fulfilled.
Building Maintenance
The freeholder must maintain the structure, exterior, and communal areas of the building to a reasonable standard, as specified in the lease.
Insurance
The freeholder is responsible for arranging block insurance for the structure and common parts, ensuring adequate cover at a competitive premium.
Service Charge Accounting
Service charges must be reasonable, properly accounted for, and a summary of costs provided to leaseholders within six months of the year-end.
Section 20 Compliance
Major works exceeding 250 pounds per leaseholder require formal consultation through the statutory Section 20 process before work can commence.
Communication
Leaseholders must be kept informed about management decisions, upcoming works, and any matters that affect their use or enjoyment of the property.
Lease Enforcement
The freeholder must enforce lease covenants fairly and consistently to protect the interests of all leaseholders and maintain the standards of the building.
What Is a Reasonable Management Fee for Leasehold Property?
Management fees for leasehold properties typically range from 150 to 500 pounds per unit per year, depending on the size and complexity of the building, the range of block management services provided, and the local market. A reasonable fee should reflect the genuine cost of delivering professional property management while providing value for money.
When assessing whether a management fee is reasonable, leaseholders should consider what is included in the fee, whether the managing agent discloses all income streams including commissions, the quality and responsiveness of the service provided, and how the fee compares with quotes from alternative property management companies. Importantly, a low fee does not necessarily represent good value if the service is poor, reactive rather than proactive, or lacking in transparency.
At Block, our management fees are fully transparent and clearly itemised within the service charge budget. We do not receive hidden commissions on block insurance placements or contractor invoices. Our fee covers a comprehensive management service including a dedicated property manager, regular site visits, full compliance management, building maintenance coordination, and transparent financial reporting.
Rated 4.9 out of 5 by Our Clients
Across 127 reviews, our clients consistently rate us as one of the most transparent and responsive leasehold management companies in the UK. Contact us on 0161 371 7190 for a free quotation based on your building's specific requirements.
Will Leasehold Be Abolished in the UK?
The future of leasehold in the UK has been a subject of significant political and public debate. The Leasehold and Freehold Reform Act 2024 introduces a range of reforms designed to improve the position of leaseholders, including the banning of new leasehold houses, easier and cheaper lease extensions, and increased transparency in service charge accounting. However, leasehold is not being abolished for flats in the immediate future.
The government has expressed a long-term ambition to replace leasehold with commonhold for new-build flats, a system in which flat owners hold their property on a freehold basis and collectively manage the building through a commonhold association. However, commonhold has been available since 2004 and has seen almost no take-up, largely due to the complexity of transitioning existing buildings and the lack of mortgage lender familiarity with the structure.
In the meantime, the key reforms that leaseholders can expect include the removal of marriage value from lease extension calculations, making extensions more affordable, a standard valuation methodology for lease extensions and collective enfranchisement purchases, enhanced rights to information about service charges and building management, and stronger regulation of managing agents through a proposed statutory regulator.
Block welcomes these reforms and supports measures that increase transparency and protect leaseholder interests. Regardless of how the legislative landscape evolves, our commitment to professional, transparent, and accountable leasehold management remains unchanged. We continue to operate to the highest standards and to advocate for fair treatment of all parties in the leasehold relationship. For more information about how we can help manage your building through these changes, explore our block management services or Right to Manage support.
Frequently Asked Questions About Leasehold Management
What is leasehold management?
Leasehold management is the professional administration of leasehold properties, ensuring that the obligations set out in the lease are properly fulfilled by both the freeholder (or their managing agent) and the leaseholders. It encompasses service charge administration, building maintenance, compliance management, lease enforcement, and communication between all parties. Effective leasehold management protects the interests of freeholders and leaseholders alike, maintains the condition and value of the building, and ensures the property operates in accordance with current legislation.
What rights do leaseholders have in the UK?
Leaseholders in the UK have a range of statutory rights, including the right to be consulted on major works and long-term contracts through the Section 20 process, the right to request a summary of service charge costs and inspect supporting documents, the right to challenge unreasonable service charges at the First-tier Tribunal, the right to be consulted on the appointment of a managing agent, the right to apply for a management audit, the Right to Manage under the Commonhold and Leasehold Reform Act 2002, and the right to collectively enfranchise (purchase the freehold). These rights provide significant protections and are designed to ensure leaseholders are treated fairly.
Can leaseholders take over management of their building?
Yes, leaseholders can take over the management of their building through the Right to Manage (RTM) process under the Commonhold and Leasehold Reform Act 2002. This allows qualifying leaseholders to form an RTM company and take control of the management of their building without having to prove fault on the part of the current manager or freeholder. The RTM company then has the power to appoint its own managing agent. At Block, we regularly support RTM companies through the formation process and provide ongoing professional management once the right has been exercised.
What is the difference between a lease and a licence?
A lease is a legal agreement that grants the leaseholder exclusive possession of a property for a specified period, typically 99 to 999 years for residential properties. It creates a proprietary interest in the land and can be bought, sold, or mortgaged. A licence, by contrast, is a personal permission to occupy a property without exclusive possession, and it does not create a property interest. Licence holders have fewer legal protections than leaseholders. In a block of flats, each flat owner holds a lease, while shared areas are typically retained by the freeholder.
How long should a lease be?
Residential leases in the UK are typically granted for terms of 99, 125, or 999 years. When a lease falls below 80 years, it can become significantly more expensive to extend because marriage value becomes payable. Mortgage lenders also become reluctant to lend on leases with fewer than 70 to 80 years remaining. If your lease is approaching these thresholds, it is advisable to consider extending it sooner rather than later. The Leasehold and Freehold Reform Act 2024 is expected to simplify the extension process and remove marriage value from the calculation, making extensions more affordable.
What is a sinking fund or reserve fund?
A sinking fund, also known as a reserve fund, is a pot of money set aside by leaseholders through their service charge contributions to cover the cost of future major works and capital expenditure. Rather than facing a large one-off demand when significant repairs are needed, leaseholders contribute a smaller amount each year that accumulates over time. Common items funded through the reserve include external redecoration, roof replacement, lift modernisation, and communal heating system renewal. The fund should be held in a designated trust account and managed transparently by the managing agent.
Looking for Expert Leasehold Management?
Whether you are a freeholder seeking a professional managing agent, a leaseholder wanting better service, or an RTM company that has recently taken over management, we deliver leasehold management you can rely on. Discover how switching your managing agent can transform your building.
info@blockmanagementcompany.com · 274 Manchester Rd, Audenshaw, Manchester M34 5GL