Leaseholder vs Freeholder: Who Is Responsible for What?

Few things cause more confusion in a block of flats than the question of who is responsible for what. Is the leak the leaseholder's problem or the freeholder's? Who fixes the communal lighting? Understanding the split is the first step to a well-run building.

What is a freeholder?

The freeholder owns the building and the land it sits on outright. They are generally responsible for the structure and common parts, and for arranging buildings insurance — though they recover the cost through the service charge.

What is a leaseholder?

A leaseholder owns the right to live in a specific flat for the term of the lease. They are typically responsible for the interior of their flat and for paying their share of the costs of running the building.

Typical division of responsibility

• Structure, roof and exterior walls: usually the freeholder.
• Communal hallways, stairs and gardens: usually the freeholder.
• Buildings insurance for the whole block: usually the freeholder.
• Inside the flat — decoration, fittings: usually the leaseholder.
• Contents insurance: always the leaseholder.

Always check the lease

The lease is the final word — these are general patterns, not rules. That is exactly why every resident should be able to read the lease and the related documents. Keeping them in a shared library, rather than in one person's drawer, prevents endless 'whose job is it?' arguments.