Guide for leaseholders

This guide is here to help you understand the different ways leasehold properties are managed and how we can help resolve complaints.

Where we are unable to help, we will try to point you in the right direction and offer guidance on places you may find help and advice here.

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1.  What is a leaseholder?

The leaseholder buys and owns the property for a set period(the lease) but does not own the land on which it is built. The land is owned by the freeholder.

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As a leaseholder, you will have rights and responsibilities which will include knowing:

• what service charges you will have to pay (how much and how often) towards property maintenance
• what repairs you may be responsible for
• what permissions you need from the freeholder to make any alterations
• how to deal with any other issues such as pets, neighbours, smoking, and noise and many more

2.  What is a residents’ management company?

A residents’ management company (RMC) is most often the leaseholders, where the lease specifies this is allowed or they own the freehold, who collectively manage the block. An RMC is set up as a not-for-profit limited company with the leaseholders being the ‘shareholders’ who can volunteer to become a director.

The terms of how this should be set up are normally set out in the lease, providing the tools to look after and maintain the building.

Typically, the responsibilities of the RMC will include the management and maintenance, such as:

• regular property inspections
• complete maintenance service packages
• arrange maintenance, repairs and cleaning contracts
• sorting any emergency work
• complying with all necessary local authority regulations
• attend any meetings with officers if requested, provided reasonable notice is given
• full range of advice on management issues

Where there is no RMC in place and the leaseholders request the right to take responsibility from the owner(s) of the freehold, they will form a ‘right to manage’ company (RTM).

The guidance set out below applies to both RMC’s and RTM’s.

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3.  Why might managing agents be involved?

If the RMC feels that self-management does not work for them, they may appoint a managing agent to manage the building’s communal areas, such as stairs and hallways and other duties on their behalf.

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4.  What are the responsibilities of an RMC or managing agent?  

Typically, the responsibilities will include the management and maintenance, such as:

• regular property inspections
• complete maintenance service packages
• arrange maintenance, repairs and cleaning contracts
• sorting any emergency work
• complying with all necessary local authority regulations
• attend any meetings with officers if requested, provided reasonable notice is given
• full range of advice on management issues

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5.  What is our role?

Our members include many managing agents, and we are here to consider any complaints made against them by a consumer, such as an RMC or an individual leaseholder.

As you can see, many of the responsibilities above involve service elements, whether it be to the property itself or the leaseholder. We are here to help if you have a valid complaint about the service which you have received, and we will assess if the leaseholder(s) have been badly treated.

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6.  What kind of complaint can we deal with?

Please be aware our authority to deal with complaints about property management agents is restricted to unfair treatment, including, but not limited to:

• poor or incompetent service
• where the member has ignored your legal rights
• rudeness or discourtesy
• lack of a clear explanation
• not completing a transaction as efficiently as reasonably expected
• avoidable delays in delivering agreed or expected services
• where the member has not followed any relevant code of practice, or their own rules or procedures

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7.  What kind of complaints might we be unable to help with?

It is outside our authority to consider a complaint if:

• the agent is not a member of our scheme
• your complaint relates to issues that began before the agent joined Property Redress
• you have not followed the member’s internal complaints process first
• it is more than 12 months since you received the member’s final response to your complaint
•  it has been dealt with, or is being dealt with, by the courts or the First Tier Tribunal (Property Chamber)
• your complaint relates to alleged criminal activity or negligence
• the amount of compensation you are asking for is more than £25,000
• you have not complied with your contractual responsibilities in relation to a contract or fees associated with the property(such as not paying your service charges)
• relates to service charges or a breach of the lease and in these circumstances you should refer to the Leasehold Advisory Service

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8.  Where else can you get help?

In the event that we cannot accept your complaint as it falls outside of our authority to deal with, we will provide you with the reasons for our decision and try to signpost other places that may be able to help, such as Leasehold advisory service the First tier tribunal property chamber or our very own Other places for help and advice

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9.  Information ready?

If you are making a leasehold complaint, you will need to provide us with the following information so that we can understand how your leasehold property is set up and whether we can help you:

• Name of leaseholders (owners of flat)
• Are you the owner of the leasehold or freehold property?
• Name of managing agent
• If there is a RMC/RTM, are you a director?
• If you are raising the complaint on behalf of any other leaseholder as well, we will need written authorisation from the other leaseholder(s) to say that they are happy for you to act on their behalf
• Is there a recognised residents’ association?

Please always provide a copy of the lease.

10.  Please note that Property Redress is not a regulator or an enforcement agency.

These are functions carried out by Trading Standards and the Government. Our authority does not allow us to:

• dictate how members carry out their business activities
• fine or punish members
• take any form of legal action against members

For more detail on our authority to deal with complaints, please refer to the Property Redress key documents - Terms of Reference and the Conditions of resolution

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