Understanding the Role of Leaseholders and Freeholders

Leaseholders have specific rights and responsibilities, and it’s crucial that freeholders comply with the covenants laid out in the lease. These include maintaining the building’s insurance, repairing the structure, and ensuring that communal services are carried out. When freeholders fail to meet these obligations, leaseholders are left vulnerable to inflated charges and poor management practices.

Dealing with Rogue Freeholders

Unfortunately, some freeholders take advantage of leaseholders, charging excessive fees for insurance or service charges without providing adequate services in return. In some cases, the freeholder may even be untraceable, making it impossible for leaseholders to resolve issues like leaking roofs or unclean communal areas. Leaseholder support services can help empower you to deal with such situations.

The Right to Manage and Buy the Freehold

If leaseholders are dissatisfied with the management of their building, they have the right to take charge, either by self-managing or by buying the freehold. For this to happen, 50% of the leaseholders must support the right to manage, or at least 2/3 of the flats must have long leases to force a sale of the freehold. However, gaining support from investors or absentee landlords can be challenging.

Court-Appointed Managers: A Solution for Mismanaged Blocks

If gaining support for self-management or freehold purchase is not feasible, leaseholders can apply to the Leasehold Valuation Tribunal (LVT) for the appointment of a Court Appointed Manager. This process requires proving that the freeholder is failing in their duties and that a managing agent is needed to take over. The appointed agent must be experienced and qualified to fulfill the role effectively.

The Process and Costs of Applying to the Leasehold Valuation Tribunal

The application process to the LVT involves providing solid evidence, such as proof of disrepair or overcharging. Leaseholders must also choose a suitable managing agent who can demonstrate their competence. The cost of applying to the Tribunal depends on the number of dwellings in the block, with fees ranging from £150 to £350. A pre-trial review will typically take place to decide the issues and the duration of the hearing.

Expert Support for Leaseholders

For leaseholders dealing with rogue freeholders or mismanagement issues, expert support is available. Mary Anne Bowring, founding director of Ringley Chartered Surveyors, offers advice through the Leaseholder Support website. With her extensive experience in building law and leasehold matters, she can guide leaseholders through the process of dealing with problematic freeholders and seeking the right solutions for their blocks.