Freeholder
A freeholder is the owner of the freehold, the land and building outright, rather than holding it on leasehold for a fixed term. As a freeholder you are usually a superior landlord, sitting above any headlease, mesne landlord and undertenants in the chain, and may also be a direct private landlord to residential tenants under private tenancies such as an assured tenancy or legacy regulated tenancy.
Where you grant long leases, you collect any ground rent, increasingly a peppercorn rent on new leases and service charges, and are generally responsible for structure, common parts and major capital improvements. Leaseholder-landlords then create their own PRS lets and must comply with Renters’ Rights Act requirements on tenancy conditions, permitted payments, tenancy deposits, rental standards, fit for human habitation, Awaab’s Law, energy efficiency rules (including MEES and Higher rate efficiency standards (HRAD)), as well as registration on the PRS Database and redress via the Private Rented Sector Ombudsman.
As freeholder, you also face building-wide duties, for example any HMO licence, fire safety and Housing Health and Safety Rating System (HHSRS) issues and have powerful remedies such as forfeiture if leaseholders seriously breach covenants. Professional freeholders actively manage both roles, covering long-term stewardship of the building and land, and, where applicable, compliant day-to-day regaining possession and management of any units they let directly.
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