Freeholder and Leaseholder Rights
Clear, practical guidance on freeholder responsibilities and leaseholder rights under current UK legislation, helping you understand your obligations and protections.
Understanding Your Rights and Responsibilities
The relationship between freeholders and leaseholders is governed by the terms of the lease and a framework of legislation that has evolved significantly over recent decades. Whether you are a freeholder managing a block of flats or a leaseholder living in one, understanding your rights and obligations is essential to ensuring the building is well-managed and disputes are kept to a minimum.
At Block, we work with both freeholders and leaseholders to ensure that the management of every building we look after complies with all relevant legislation and respects the rights of all parties. This page provides an overview of the key rights and responsibilities that apply to leasehold management in England and Wales.
The principal legislation governing the freeholder-leaseholder relationship includes the Landlord and Tenant Act 1985, the Landlord and Tenant Act 1987, the Leasehold Reform, Housing and Urban Development Act 1993, and the Commonhold and Leasehold Reform Act 2002. More recently, the Leasehold and Freehold Reform Act 2024 has introduced further protections for leaseholders.
Freeholder Responsibilities
As the owner of the freehold, the freeholder has a range of legal responsibilities towards leaseholders and the building itself. These obligations are set out in the lease and supplemented by statute. Key freeholder responsibilities include:
Building Maintenance
The freeholder must maintain the structure and exterior of the building, including the roof, walls, foundations, and communal areas. This is typically funded through the service charge.
Insurance
The freeholder is usually required to arrange adequate buildings insurance for the block. The cost is recoverable from leaseholders through the service charge.
Service Charge Administration
Service charges must be reasonably incurred and for work carried out to a reasonable standard. The freeholder must provide annual accounts and respond to requests for information.
Section 20 Consultation
Before carrying out qualifying works or entering into long-term agreements above statutory thresholds, the freeholder must consult leaseholders through the Section 20 process.
Health and Safety Compliance
The freeholder is responsible for fire safety assessments, electrical testing, asbestos management, legionella risk assessments, and other statutory health and safety obligations.
Providing Services
The freeholder must provide the services set out in the lease, such as communal cleaning, lighting, gardening, and lift maintenance.
Many freeholders appoint a professional managing agent to carry out these responsibilities on their behalf. At Block, we manage all freeholder responsibilities to the highest standard, ensuring compliance with the Landlord and Tenant Act 1985 and all other relevant legislation. Our services cover everything from building maintenance to service charge administration.
Leaseholder Rights
Leaseholders benefit from extensive statutory protections that have been strengthened over the years. Understanding your leaseholder rights enables you to hold your freeholder and managing agent to account and ensure your building is properly managed. Key leaseholder rights include:
Right to Information
Leaseholders can request a summary of service charge costs (Section 21) and inspect supporting documentation (Section 22) under the Landlord and Tenant Act 1985.
Right to Challenge Service Charges
Under Section 27A, leaseholders can apply to the First-tier Tribunal to challenge whether service charges have been reasonably incurred and work carried out to a reasonable standard.
Right to Be Consulted
Leaseholders must be consulted before qualifying works or long-term agreements are entered into under the Section 20 consultation process.
Right to Manage
Under the Commonhold and Leasehold Reform Act 2002, qualifying leaseholders can exercise the Right to Manage and take over the management of their building without proving fault.
Right to Extend Your Lease
Qualifying leaseholders have the statutory right to extend their lease. Under current law, this provides a 90-year extension at a peppercorn ground rent, with further reforms extending this to 990 years.
Right to Collective Enfranchisement
Qualifying leaseholders can collectively purchase the freehold of their building, giving them full control over the management and future of their property.
Right to Appoint a New Manager
Under Section 24 of the Landlord and Tenant Act 1987, leaseholders can apply to the tribunal for the appointment of a new manager if the current management is unsatisfactory.
If you are unsure about your leaseholder rights or want guidance on how to exercise them, our team is here to help. We can advise on everything from Section 20 consultation to lease extensions and collective enfranchisement.
Leaseholder Obligations
While leaseholders benefit from important rights, they also have obligations under the lease that must be observed. Failing to meet these obligations can result in breach of lease proceedings and, in extreme cases, forfeiture. Key leaseholder obligations typically include:
- •Paying service charge and ground rent on time and in accordance with the lease
- •Maintaining the interior of the flat in good repair
- •Not causing nuisance or annoyance to other residents
- •Obtaining consent before making alterations to the property
- •Complying with the terms and covenants of the lease
- •Notifying the managing agent of any damage or issues affecting communal areas
Understanding both your rights and obligations as a leaseholder is the foundation of a well-managed building. At Block, we ensure that all parties are treated fairly and that the terms of the lease are applied consistently and transparently.
Dispute Resolution
Disputes between freeholders and leaseholders are unfortunately common. Whether the issue relates to service charge costs, building maintenance standards, or compliance with lease covenants, there are established routes for resolution:
Direct Communication
Many disputes can be resolved through open dialogue between the parties or through the managing agent. We always encourage this as a first step.
Property Redress Scheme
If the managing agent is a member of a redress scheme such as the Property Redress Scheme, leaseholders can escalate complaints through this route.
First-tier Tribunal (Property Chamber)
The tribunal can determine disputes about service charges, lease terms, the appointment of managers, and other leasehold matters. Costs are generally low and the process is less formal than court.
County Court
For breach of covenant or debt recovery matters, either party may need to apply to the county court. Legal advice is recommended before taking this step.
As members of the Property Redress Scheme and committed to the standards set by ARMA and RICS, we take complaints seriously and work to resolve disputes quickly and fairly. Our goal is always to prevent disputes arising in the first place through transparent communication and professional management.
Frequently Asked Questions About Freeholder and Leaseholder Rights
What are the main rights of a leaseholder?
The main rights of a leaseholder include the right to quiet enjoyment of their property, the right to be consulted on major works under Section 20, the right to request a summary of service charges and inspect supporting accounts, the right to challenge unreasonable service charges at the First-tier Tribunal, the right to extend their lease, the right to participate in collective enfranchisement to buy the freehold, and the right to manage through an RTM company. Leaseholders also have the right to be treated fairly under the terms of their lease.
What are a freeholder's responsibilities to leaseholders?
A freeholder's key responsibilities include maintaining the structure and exterior of the building, maintaining communal areas and shared facilities, arranging adequate buildings insurance, providing services as set out in the lease, administering service charges fairly and transparently, consulting leaseholders on qualifying works and long-term agreements under Section 20, and complying with all statutory obligations including health and safety, fire safety, and building regulations.
Can a leaseholder withhold service charge payments?
While leaseholders have the right to challenge service charges they believe are unreasonable, withholding payment entirely is generally not advisable and can lead to legal action for breach of the lease. The recommended approach is to pay the service charge under protest and then apply to the First-tier Tribunal for a determination. The tribunal can reduce or disallow charges that are unreasonably incurred or for work not carried out to a reasonable standard.
What is the difference between a freeholder and a leaseholder?
A freeholder owns the land and building outright, with no time limit on their ownership. A leaseholder owns the right to occupy a property for a fixed term as set out in the lease, which is a contract between the freeholder and leaseholder. When the lease expires, ownership reverts to the freeholder. The freeholder is responsible for the building structure and common parts, while the leaseholder is responsible for the interior of their flat and must pay service charges and ground rent as required by the lease.
How can leaseholders remove a managing agent?
Leaseholders have several options for removing or changing their managing agent. They can exercise the Right to Manage under the Commonhold and Leasehold Reform Act 2002, which allows qualifying leaseholders to take over management without needing to prove fault. Alternatively, they can apply to the First-tier Tribunal for the appointment of a new manager under Section 24 of the Landlord and Tenant Act 1987, which requires demonstrating that the current management is unsatisfactory. Leaseholders can also collectively approach the freeholder to request a change of managing agent.
What happens if a freeholder breaches the lease?
If a freeholder breaches their obligations under the lease, such as failing to maintain the building or provide agreed services, leaseholders have several remedies. They can write to the freeholder or managing agent demanding that the breach be remedied. If the breach continues, leaseholders can apply to the First-tier Tribunal for a determination or seek a court order requiring the freeholder to comply with their obligations. In serious cases, leaseholders may also have grounds to exercise the Right to Manage or pursue collective enfranchisement.
Need Guidance on Freeholder or Leaseholder Rights?
Our team provides clear, practical advice on freeholder responsibilities and leaseholder rights. Contact us for a free, no-obligation conversation.