Leaseholder Rights in the UK
A comprehensive guide to your legal rights as a leaseholder, including service charge protections, the right to manage, lease extensions, and how to hold your freeholder and managing agent accountable.
Understanding your leaseholder rights is essential for protecting your home and your investment. Whether you own a flat in a small conversion or a large residential block, UK legislation provides extensive protections covering everything from service charge transparency to the ability to take over management of your building. At Block, we believe informed leaseholders are empowered leaseholders, and we work to uphold these rights across every development we manage.
The key legislation protecting leaseholders in the UK includes the Landlord and Tenant Act 1985, the Commonhold and Leasehold Reform Act 2002, and the Leasehold and Freehold Reform Act 2024. Together, these laws establish your right to fair and transparent charges, proper consultation on major works, access to financial information, and the ability to change how your building is managed.
What Rights Do Leaseholders Have?
Leaseholder rights in the UK are wide-ranging. Here are the most important protections available to you as a leaseholder:
Your Service Charge Rights
Service charges are often the most significant ongoing cost for leaseholders. The law provides important safeguards. Under Section 19 of the Landlord and Tenant Act 1985, charges must be reasonably incurred and the work must be carried out to a reasonable standard. You cannot be charged for services or works that fall outside the scope of your lease.
If you believe your service charge is unreasonable, you have several options. You can raise the matter directly with your managing agent, request a formal review, or apply to the First-tier Tribunal (Property Chamber) for an independent determination. The tribunal can decide whether the charges were reasonably incurred and whether the work was carried out to a reasonable standard.
At Block, our approach to service charge management is built on complete transparency. Every charge is fully itemised, and leaseholders receive detailed service charge accounts that clearly explain where every pound has been spent.
The Right to Manage
One of the most powerful leaseholder rights is the right to manage under the Commonhold and Leasehold Reform Act 2002. This allows qualifying leaseholders to take over the management of their building by forming a Right to Manage company without having to prove any fault or mismanagement on the part of the current freeholder or managing agent.
To exercise the right to manage, at least two-thirds of the flats in the building must be held on long leases, and at least half of those qualifying leaseholders must participate. Once the RTM company is established and the statutory process is completed, the leaseholders can appoint their own managing agent and make decisions about how the building is run.
Block regularly assists leaseholders through the right to manage process and provides ongoing block management once the transfer is complete.
Lease Extensions and Collective Enfranchisement
Leaseholders who have owned their property for at least two years have the right to extend their lease by a further 90 years (for flats) at a peppercorn ground rent. The lease extension process is governed by statute and involves serving a Section 42 notice on the freeholder. If terms cannot be agreed, either party can apply to the First-tier Tribunal for a determination.
Alternatively, qualifying leaseholders can collectively purchase the freehold of their building through collective enfranchisement. At least half of the flats must participate, and the building must meet certain qualifying criteria. Once the freehold is acquired, the leaseholders gain full control of the building and can manage it through a freehold management company.
Frequently Asked Questions About Leaseholder Rights
Do leaseholders have any rights?
Yes. Leaseholders in the UK have extensive rights under the Landlord and Tenant Act 1985, the Commonhold and Leasehold Reform Act 2002, and related legislation. These include the right to challenge unreasonable service charges, the right to be consulted on major works over a qualifying threshold, the right to request a summary of service charge accounts, the right to inspect invoices and receipts, and the right to manage the building through an RTM company without proving fault with the current managing agent.
Can you be evicted from a leasehold property?
Eviction from a leasehold property is extremely rare. A freeholder can only seek forfeiture of the lease for serious breaches, such as persistent non-payment of ground rent or service charges, or significant breach of lease covenants. Even then, the freeholder must serve a Section 146 notice and the leaseholder has the right to apply for relief from forfeiture through the courts. The Commonhold and Leasehold Reform Act 2002 provides additional protections, particularly for ground rent arrears.
What is the new law for leaseholders?
The Leasehold and Freehold Reform Act 2024 introduced significant changes to leaseholder rights in the UK. Key provisions include the abolition of ground rent on new leases, making it easier and cheaper to extend leases or buy the freehold through collective enfranchisement, increasing transparency around service charges and building insurance commissions, and strengthening the right to manage process. Many provisions are being phased in gradually through secondary legislation.
What information are leaseholders entitled to?
Leaseholders have a legal right to request and receive a written summary of service charge costs, to inspect the accounts, receipts, and invoices supporting those costs, and to be consulted before the managing agent or freeholder carries out qualifying works exceeding the statutory threshold or enters into qualifying long-term agreements. Leaseholders can also request insurance information, including the policy details and the commission received by the managing agent or freeholder.
Who pays for replacement windows in a leasehold flat?
Responsibility for window replacement in a leasehold flat depends on the terms of the lease. In most leases, the external structure of the building including external windows is the responsibility of the freeholder, with costs recovered through the service charge. However, some leases demise the windows to the leaseholder, making the individual flat owner responsible. It is essential to check the lease carefully and consult your managing agent to clarify the position for your specific building.
Can leaseholders challenge service charges?
Yes. 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. If a leaseholder believes charges are unreasonable, they can raise the matter with the managing agent, apply to the First-tier Tribunal (Property Chamber) for a determination, or seek mediation. The tribunal can determine whether the charges are payable and whether the standard of work justifies the cost.
Need Help Understanding Your Leaseholder Rights?
Our experienced team can explain your leaseholder rights and ensure your building is managed transparently and fairly. Speak with us today.