Understanding leaseholder and freeholder responsibilities in a leasehold development can be confusing, especially when it comes to block management, service charges, and communal repairs. Whether you’re a leaseholder, director, or landlord, it’s important to know how costs are divided.
At JMJ Asset Management, we help clients navigate lease obligations with clarity and confidence. This article explores how leaseholder and freeholder responsibilities are typically split, and why clear communication matters.
The Lease is the rulebook
Every lease is different. It sets out who is responsible for repairs, services, and contributions, including the maintenance of communal areas, roofs, windows, and structure. Your managing agent interprets and follows this lease on your behalf.
When we onboard a new development, one of the first things we do is review the lease documentation to ensure the financial and operational management plan reflects what’s legally required. This prevents disputes and ensures compliance.
Leaseholder responsibilities often include:
- Paying the service charge for their share of communal upkeep
- Maintaining the inside of their flat (walls, ceilings, plumbing, fixtures)
- Following the rules of the lease (e.g. noise, pets, subletting)
We’ve helped leaseholders understand their obligations by creating easy-to-read residents’ guides, outlining what’s covered by the service charge and what isn’t. This helps set expectations from day one.
Freeholder or RMC responsibilities usually include:
- Managing and maintaining communal areas
- Arranging insurance for the building
- Collecting and managing service charges and the reserve fund
- Ensuring the building complies with fire and building safety regulations
For example, we supported an RMC in Gloucestershire where the directors were unsure about responsibility for a boundary wall after storm damage. We reviewed the lease, obtained legal clarification, and supported the board in issuing the appropriate communication to residents, saving confusion and delays.
Common misunderstandings
- The service charge doesn’t cover internal flat repairs
- Insurance claims may not cover wear and tear or contents, leaseholders need separate contents insurance
- Emergency repairs to communal areas may require fast action but are still subject to lease obligations
Why a good Managing Agent matters
Clear communication around financial responsibilities prevents conflict, reduces arrears, and improves trust between all parties.
At JMJ, we provide transparent budgeting, accurate reporting, and practical support. If there’s uncertainty around who pays for what, we step in to interpret the lease, explain the implications, and offer a fair, sensible solution.
