You as a freeholder
The freeholder, leaseholders and managing agent relationship
The diagram above shows the relationship between the freeholder, leaseholders and managing agent. The triangular relationship between the three parties is defined by a number of legal documents: The relationship between the freeholder and the leaseholders is defined in the individual leases; and the relationship between the freeholder and his/her managing agent is spelt out in the management agreement contract between the two parties. There is no contractual relationship between the managing agent and the leaseholder. However, in practice the managing agent will deal directly with the leaseholders for the day-to-day running of the property having taken the freeholder's instructions.
The Commonhold Leasehold Reform Act 2002 provides for freeholders to maintain the property as per the lease, keeping records and proof of the expenditure and protecting the property asset with adequate insurance.
As a freeholder, your responsibilities include:
- Keeping accounts
- Keeping the buildings insured
- Collecting a service charge
- Maintaining the building in good repair
