Freeholder

A freeholder is the owner of the freehold, outright ownership of a building and the land it stands on, granted for an indefinite duration and registered in their name at HM Land Registry. In a building containing leasehold flats, the freeholder sits at the top of the ownership chain, granting long leases to individual flat owners and retaining the structure, common parts, and land. The leaseholder is the person who holds the individual flat or unit on a lease granted by the freeholder, typically for a term of 99, 125, or 999 years.

Where the freeholder occupies the top of a multi-tier chain, for example, where a headlessee holds the building on an intermediate lease and sublets individual units, they are described as the superior landlord. In most purpose-built blocks, however, the freeholder deals directly with individual flat leaseholders without an intermediate tier.

What a freeholder is responsible for

The freeholder's obligations arise from two sources: the terms of the individual leases, and statute. The primary statute is the Landlord and Tenant Act 1985, which sets out the freeholder's duty to keep the structure and exterior of a building in repair, and governs how service charges are collected and challenged. The Leasehold Advisory Service (LEASE) provides authoritative guidance on freeholder duties that applies to all freeholders letting flats in England and Wales.

In practice, the freeholder's core responsibilities are:

Structural repairs and the building exterior. The freeholder is responsible for the roof, external walls, foundations, drains, and any structural elements of the building. Repair costs are recoverable from leaseholders through the service charge, but the freeholder must carry out the works and bears liability if they fail to do so.

Communal areas and shared services. Stairwells, entrance halls, lifts, communal gardens, car parks, and shared plant rooms fall to the freeholder to maintain. Where these areas present health and safety risks, the freeholder may also be subject to obligations under the Housing Health and Safety Rating System and fire safety legislation.

Buildings insurance. The freeholder is responsible for arranging buildings insurance for the whole building. The cost is recovered from leaseholders through the service charge. Leaseholders have the right to request details of the policy and to challenge the reasonableness of the premium.

Ground rent and service charges. The freeholder sets and collects any ground rent due under the leases, increasingly reduced to a nominal peppercorn rent on leases granted since June 2022, and administers the service charge account. Charges must be reasonable; leaseholders can apply to the First-tier Tribunal (Property Chamber) to challenge them.

Section 20 consultation

Where the freeholder intends to carry out major works that would require any individual leaseholder to contribute more than £250, or to enter a long-term service contract costing any leaseholder more than £100 per year, they must follow the statutory consultation procedure set out in Section 20 of the Landlord and Tenant Act 1985. This involves issuing a Notice of Intention, inviting observations, obtaining estimates, and issuing a Notice of Award of Contract. Failure to follow the process means the freeholder cannot recover more than £250 per leaseholder for the relevant works, regardless of the actual cost.

From working with self-managing landlords across the UK, August finds that Section 20 obligations catch freeholders off guard most often when unexpected structural repairs, a failed flat roof or failing lift, generate bills that far exceed the consultation threshold. The procedural requirements apply even when works are urgent, though emergency dispensation can be sought from the Tribunal.

The freeholder as direct landlord

A freeholder who lets units directly to residential tenants, rather than granting long leases, is also a private landlord and subject to the full framework of private rented sector regulation. Since 1 May 2026, that means operating under the Renters' Rights Act framework, covering assured periodic tenancies, compliant rent increases, valid possession grounds, deposit protection, and registration with the PRS Database. Building-wide compliance obligations, including HMO licensing where applicable and fire safety under the Fire Safety (England) Regulations, run alongside, not instead of, those tenancy-level duties.

Leaseholders' rights against the freeholder

Leaseholders have a range of statutory remedies where a freeholder fails to meet their obligations. These include applying to the First-tier Tribunal to determine whether service charges are reasonable, applying for a Right to Manage order to take over management of the building, and pursuing collective enfranchisement to buy the freehold. The freeholder retains the remedy of forfeiture where a leaseholder seriously breaches their covenants, though the draft Commonhold and Leasehold Reform Bill (January 2026) proposes to abolish forfeiture and replace it with a fairer enforcement regime. The Leasehold and Freehold Reform Act 2024 has already strengthened leaseholders' rights to challenge charges and extend their leases.

Frequently asked questions

What buildings insurance does a freeholder need?

A freeholder of a building containing leasehold flats must arrange buildings insurance for the whole structure. Standard residential buildings insurance is not sufficient, the freeholder requires a commercial or landlord's buildings policy covering the whole block, including communal areas, the structure, and any shared services. The cost is recoverable from leaseholders through the service charge, but the policy must be reasonable in both cover and premium. Leaseholders have the statutory right under the Landlord and Tenant Act 1985 to inspect the policy summary and challenge the premium if they believe it is excessive.

What is an absent freeholder?

An absent freeholder is a freeholder whose identity or whereabouts cannot be established by the leaseholders. This creates practical problems for lease extensions, collective enfranchisement, and obtaining consent for alterations. Where a freeholder cannot be traced, leaseholders may apply to the First-tier Tribunal to have a vesting order made, enabling the enfranchisement process to proceed without the freeholder's participation. Indemnity insurance is typically required in conveyancing transactions involving an absent or untraceable freeholder.

Can a freeholder also be a leaseholder?

Yes. In a share of freehold arrangement, each flat owner holds their individual unit on a long lease and jointly holds the freehold of the building through a residents' management company. In this structure, each flat owner is simultaneously a leaseholder of their own unit and a freeholder (via their share in the company) of the building. The legal obligations of the freehold company, including repairs, insurance, service charges, Section 20 consultation, apply regardless of whether the freeholder is a third-party investor or a collective of the building's own residents.