Share of Freehold Flats
Owning a share of the freehold makes you one of your own landlords. The lease still applies, and so do the landlord's legal duties.
What Share of Freehold Means
A share of freehold flat is a leasehold flat whose owners also own the freehold of the building between them. Each owner holds a long lease of their own flat, exactly as in any other block, and also holds a share in the freehold, so the owners are collectively the landlord of their own leases.
Because no more than four people can hold the legal title to land, the freehold of all but the smallest buildings is usually held by a company, with each flat owner as a member or shareholder. Shared freehold means the same thing. Most arrangements tie the share to the flat, so that when the flat is sold the share passes to the buyer with it.
The Flat Is Still Leasehold
Owning part of the freehold does not turn the flat into a freehold. The lease still sets what each owner pays, what they must repair, and what needs consent, and it is still the document a buyer's solicitor and a mortgage lender will read.
What changes is who controls the landlord's side. The owners decide together on repairs, the budget, the reserve fund and the insurance, and they can agree changes to the leases between themselves, such as a lease extension, with legal and valuation advice and the consent of any lender.
The Duties Do Not Go Away
The freehold company is the landlord, so the duties that apply to any landlord apply to it. Major works above the statutory threshold need Section 20 consultation, even where every leaseholder is also a shareholder. Service charge money is held on trust under section 42 of the Landlord and Tenant Act 1987, and the company has to file its accounts and confirmation statement at Companies House. The company, as the party in control of the common parts, is also the responsible person for fire safety there.
Where these go wrong in a share of freehold block, it is rarely through bad intent. It is neighbours who are also directors, a board nobody wants to sit on, a reserve fund that was never started, or a consultation skipped because everyone agreed in the corridor.
How a Share of Freehold Block Can Be Managed
Some owners run the building themselves, and for a small, simple block that can work well. Others keep the decisions and hand over the administration: the budget, the service charge demands and collection, the accounts and the company filing. Others appoint a managing agent for the whole job, answering to the freehold company's directors.
We work in all three ways. Where the board wants it, we also act as company secretary, which keeps the company's filing and records in order regardless of who is a director that year.
| Service | Fee |
|---|---|
| Company secretary, up to 10 units | £180.00 |
| Company secretary, up to 50 units | £360.00 |
| Company secretary, over 50 units | £480.00 |
Taken from our published Additional Services price list, PBM Form #01-27 rev.6, effective 23 June 2025. All fees quoted are inclusive of VAT.
Where We Do This
From our Plymouth office, across Devon, Cornwall and the wider South West. Each area page sets out the authority, the fire and rescue service and the local building stock.
Common Questions
What Does Share of Freehold Mean?
The flat owners own the freehold of their building between them, usually through a company, while each still holds a long lease of their own flat. Shared freehold means the same thing.
Is a Share of Freehold Flat Leasehold?
Yes. The flat is held on a lease like any other leasehold flat. The difference is that the owners also control the landlord, through their shares in the freehold.
Do Share of Freehold Owners Pay a Service Charge?
Yes. The lease still requires each owner to contribute to the cost of repairing, insuring and running the building. The owners, as the landlord, decide the budget, but the service charge is still collected and accounted for under the lease.
Do the Building Safety Act Leaseholder Protections Apply to Share of Freehold?
Often not. A building whose freehold is owned only by its own leaseholders, including through their company, is generally excluded from the Building Safety Act 2022 leaseholder protections, so the cost of historical safety defects can fall on the owners. It is worth checking before buying in a taller block.
Who Is Responsible for Repairs in a Share of Freehold Block?
The freehold company, as landlord, for whatever the lease makes the landlord responsible for, which is usually the structure, the roof and the shared parts. Each owner remains responsible for the parts of their own flat that the lease gives them.
Related Services
Managing Agent for Residents’ Management Companies
A residents' management company is run by volunteers with full company director duties. Our job is to take…
Read moreSelf-Managed Block Support
Self-management works, until the thing it does not cover turns up. This is about knowing which of those…
Read moreCompany Secretarial Services
A resident management company is a real company at Companies House, with real filing deadlines and real…
Read moreLease Extensions & Collective Enfranchisement
A short lease costs money every year it is left short, and the cost accelerates. This is the one piece of…
Read moreMajor Works and Section 20
When consultation is required, the three notices, and what we charge to run it.
Read moreRead more: RMC Director Duties: Companies Act Sections 171 to 177, Sinking Funds and Reserve Funds for Flats: How Much to Hold, Lease Extension Cost and Process for Flats