10 Things Every Leaseholder Googles at Some Point (And What You Should Actually Do)
If you own a leasehold property, there comes a moment when you open an email from your managing agent and think:
“Surely they can’t actually do that?”
Then comes the inevitable Google search.
“Can my service charge really be this high?”
“Can my managing agent charge me for this?”
“Who is actually responsible for the roof?”
“Can leaseholders change their managing agent?”
“What is Section 20?”
And eventually:
“What on earth is an RTM?”
Welcome to leasehold.
It can sometimes feel like you need a law degree, an accounting qualification and the patience of a saint just to understand what is happening with your own home.
The good news is that many of the problems leaseholders encounter are surprisingly common.
Here are 10 questions leaseholders regularly ask — and what you should actually do about them.
1. “Why is my service charge so high?”
Probably the most popular leasehold question of all.
Your service charge can cover all sorts of things:
Cleaning
Gardening
Buildings insurance
Repairs
Communal electricity
Lift maintenance
Fire safety
Management fees
Accountancy
Major works
Reserve funds
Professional fees
So a high service charge doesn’t automatically mean something is wrong.
But it does deserve investigation.
Start by looking at the breakdown rather than simply looking at the final figure.
Ask:
What am I actually paying for?
Then compare it with previous years.
Has the management fee increased?
Has the insurance premium jumped?
Are there new professional fees?
Are there major works?
Are there recurring repairs that never seem to solve the underlying problem?
Sometimes the problem isn’t one outrageous charge.
It’s dozens of smaller costs that have quietly crept upwards.
2. “Can leaseholders change their managing agent?”
Yes, potentially.
But the answer depends on who appointed the managing agent and what your lease and management structure say.
This is where things can get interesting.
If the freeholder controls the management, leaseholders may have limited ability to simply sack the agent themselves.
If an RMC controls the management, the position can be very different.
And if the building has exercised the Right to Manage (RTM), the RTM company can take over the management functions from the landlord.
So before declaring war on your managing agent, work out:
Who actually has the power to appoint them?
You might discover that changing the agent is much easier than you thought.
Or you might discover that the problem requires a different solution.
3. “What is Right to Manage?”
Don’t worry.
You’re not the only person who has Googled this.
The Right to Manage is a statutory right that can allow qualifying leaseholders to take over the management of their building without having to buy the freehold.
It can give qualifying leaseholders significantly more control over how the building is managed.
That can include decisions around:
Managing agents
Service charges
Repairs
Contractors
Insurance
Major works
Communal areas
Day-to-day management
Importantly, RTM isn’t the same as buying the freehold.
You don’t become the freeholder.
Instead, qualifying leaseholders establish an RTM company and acquire the right to manage the building.
For some blocks, that can completely change the relationship between leaseholders and the management of their property.
4. “Can my managing agent charge me for that?”
This is another classic.
You receive a bill for:
“Administration — £195 + VAT.”
Administration of what?
Who knows.
Then another:
“Contractor management fee — 10%.”
And another:
“Additional correspondence — £35.”
Suddenly you’re wondering whether sending an email has become a premium financial service.
The important question isn’t simply whether a managing agent usually charges a fee.
You need to consider:
What does the lease allow?
What does the management agreement say?
Is the cost recoverable through the service charge?
Is it reasonable?
Was the fee disclosed?
Is it a management fee, commission or additional charge?
Is there a legitimate reason for the cost?
Never assume that because something appears on a service charge statement, it must automatically be payable.
But equally, don’t simply refuse to pay a charge because it looks suspicious.
Understand the contractual and legal position first.
5. “What is a Section 20 notice?”
If you’ve received something mentioning Section 20, congratulations.
You’ve entered the exciting world of major works consultation.
Section 20 of the Landlord and Tenant Act 1985 contains consultation requirements that can apply when landlords seek to recover certain major works costs through the service charge.
In simple terms, if your building needs expensive work, there are circumstances where the landlord needs to follow a consultation process before recovering the full cost from leaseholders.
This can involve:
Notices
Descriptions of proposed works
Estimates
Observations from leaseholders
Contractor information
Further consultation depending on the circumstances
And yes, this is one of those occasions where ignoring the letter because it looks boring is probably not the best strategy.
Keep the paperwork. Read it. Ask questions.
If you’re looking at a major bill, understanding the consultation process can be extremely important.
6. “Why is my managing agent so hard to contact?”
Ah, the leaseholder classic.
You send an email.
Nothing.
You send another.
Nothing.
You call.
“Your call is important to us.”
Apparently it is so important that nobody is available to answer it.
You eventually receive a reply three weeks later:
“Please see below.”
And there is no “below”.
If this happens repeatedly, don’t just keep sending increasingly frustrated emails.
Step back and ask:
Why isn’t the management working?
Is the property manager overloaded?
Is there no clear escalation process?
Is the managing agent poorly resourced?
Does the freeholder control the agent?
Does the RMC actually have authority over the agent?
Are directors failing to give the agent instructions?
Sometimes poor communication is simply a symptom of a much bigger management problem.
7. “Who is responsible for repairing my building?”
This sounds simple.
It often isn’t.
The answer may depend on:
Your lease
The leases of other flats
The freeholder’s obligations
The management structure
The RMC’s responsibilities
The RTM company’s responsibilities
Whether the issue concerns the demised premises or communal parts
Roof leaking?
Windows failing?
Communal entrance damaged?
Lift broken?
Water coming through the ceiling?
Before deciding who should pay, look at the lease and understand who has the repairing obligation.
One of the biggest mistakes leaseholders make is assuming that the person who owns the building must automatically pay for everything that goes wrong with it.
Leasehold doesn’t always work that way.
8. “Can I challenge my service charge?”
Potentially, yes.
But don’t start with:
“I’m not paying it.”
Start with:
“I want to understand it.”
Look at:
The lease
Service charge accounts
Budgets
Invoices
Major works information
Contractor costs
Management fees
Insurance
Apportionments
Supporting information
If something doesn’t look right, ask questions and establish the facts.
There are legal mechanisms for challenging certain service charge costs, including applications to the First-tier Tribunal (Property Chamber) in England and Wales in appropriate circumstances.
But not every disagreement needs to end up in a tribunal.
Sometimes the problem can be resolved by obtaining the right information and challenging an incorrect assumption.
9. “Can we get a better managing agent?”
Absolutely worth asking.
And this is where leaseholders can sometimes make a much bigger difference than they realise.
If your building is unhappy with its managing agent, don’t just search:
“Managing agents near me.”
Instead, work out what your building actually needs.
For example:
Better communication?
Lower management fees?
More frequent inspections?
Better contractor management?
Better major works experience?
Stronger financial controls?
Better leaseholder communication?
More experience with RTM companies?
Fewer additional fees?
Then tender the management properly.
Get several proposals.
Compare the whole fee structure, not just the headline price.
Review the contracts.
Ask questions.
Negotiate.
And remember:
The cheapest managing agent isn’t necessarily the best managing agent.
10. “How do we take control of our block?”
This is the question that often sits underneath all the others.
Because sometimes the problem isn’t one bad repair.
Or one expensive invoice.
Or one unanswered email.
Sometimes leaseholders simply feel that they have no control over what happens to their own building.
Depending on the circumstances, there may be several routes available.
Change the managing agent
If the existing management structure allows it, appoint a better agent.
Improve the existing management
Sometimes the agent isn’t fundamentally the problem. Better instructions, clearer responsibilities and stronger oversight can make a significant difference.
Right to Manage
Qualifying leaseholders may be able to acquire the Right to Manage.
Collective enfranchisement
In some circumstances, leaseholders may be able to collectively purchase the freehold.
Take professional advice
Sometimes the first step isn’t taking action at all.
It’s understanding which option actually makes sense.
The Biggest Leasehold Mistake?
Trying to solve the wrong problem.
A building might spend months arguing with its managing agent about a £200 charge when the real problem is that the management structure is fundamentally wrong.
Another block might spend years complaining about poor communication when the leaseholders could potentially change the management arrangement.
Another might immediately start a legal dispute when a straightforward review of the accounts could have resolved the issue.
Before you fight the problem, understand the problem.
That’s often where the biggest difference can be made.
Feeling Lost With Your Leasehold?
If you’ve found this article because you’ve Googled one of these questions, there’s a good chance you’ve already discovered something:
Leasehold isn’t always straightforward.
And you don’t necessarily need to become an expert in leasehold law to deal with it.
You need to understand what the problem is, who is responsible, what your options are and what the best next step is.
That’s where independent leasehold consultancy can help.
At Easy Leasehold, we work with leaseholders, RMCs and RTM companies on practical leasehold and block management issues.
We can help with areas including:
Right to Manage
RMC and RTM management
Managing agent tendering
Changing managing agents
Service charge issues
Major works
Leasehold management problems
Management strategy
Reviewing managing agent proposals
Negotiating management arrangements
We don’t act as your managing agent.
We help you understand the situation and make better decisions about your building.
Because when it comes to leasehold, sometimes the most useful thing you can have isn’t another managing agent.
It’s someone who understands the industry and is on your side.
Easy Leasehold
Independent leasehold consultancy for leaseholders, RMCs and RTM companies.