Across the UK, millions of leaseholders live in homes they don’t truly own. As a result of ancient property laws, they don’t own the bricks, the roof, or indeed the land – they merely have the right to occupy the property for a fixed number of years.
And with no ownership comes no control. Leaseholders are finding they have little to no say over the most basic and important aspects of their homes. Maintenance costs, ground rents, and service charges are dictated entirely by their landlord. Decisions about building repairs, insurance, and even whether to tackle safety defects are often made without their consent – but always with their money.
For too many, these homes have become profit machines for freeholders who impose inflated, sometimes unlawful, financial demands.
I know this from experience. Years ago, I was trapped under the thumb of a ruthless billionaire landlord who treated our building as his personal fiefdom, with human furniture and a cash cow. Service charges soared. Bills appeared without explanation. Maintenance was delayed or botched. I decided I’d had enough.
What followed was a six-year battle to buy him out and give control to the 40 leaseholders in my block. It was a David-versus-Goliath fight – expensive, exhausting, and at times, deeply frustrating. But in the end, David won. We took control of our building, secured our homes, and stopped the financial bleed. That victory inspired me to create The Freehold Collective, dedicated to helping other leaseholders win back control. Since then, I’ve never been busier.
The Growing Leasehold Crisis
Leaseholder struggles are no longer a hidden problem. They’ve been making headlines for months. Stories keep emerging of exploitation:
- Service charges doubling or tripling in just a few years
- Ground rents escalating to absurd levels
- Insurance premiums inflated with hidden commissions
- Freeholders failing to maintain buildings, even as residents pay top rates for management
And then there’s safety. In the wake of the Grenfell tragedy, thousands of buildings have been identified with inherent defects, including flammable cladding and missing fire breaks. For many leaseholders, this has meant living in unsafe homes they can’t sell – all while still paying for the privilege through service charges.
The term “fleecehold” has entered the public vocabulary for good reason. This system has left 4.9 million leaseholders and their families in a position that combines financial strain, legal vulnerability, and emotional stress. Some are stuck in unsellable homes. Others are effectively paying a lifetime subscription fee just to stay put.
Reform on the Horizon – But Not Here Yet
In response to public pressure, the government has introduced new legislation to make buying the freehold easier and cheaper. On paper, it’s a welcome step forward. In practice, leaseholders are unlikely to see the benefits for some time and badly-drafted legislation can lead to unintended consequences. Secondary legislation is still pending, and freeholders are already mounting legal challenges, slowing the process.
Key measures in the new Act include:
- Making it cheaper and simpler for leaseholders to extend leases or buy freeholds, including scrapping “marriage value” payments.
- Increasing the standard lease extension term to 990 years, with ground rent reduced to zero after paying a premium.
- Expanding eligibility so more leaseholders can extend leases, buy freeholds, or take over management.
- Banning most new leasehold houses.
- Requiring transparency on service charges, admin fees, and insurance commissions.
- Removing the presumption that leaseholders must pay their landlord’s legal costs when challenging poor practice.
It’s a promising list – but the reality is that change will take years to bed in. Meanwhile, your bills may keep rising, your lease may keep shortening, and your control over your home will remain minimal.
That’s why leaseholders shouldn’t wait for reform to arrive. There are steps you can take now.
1. Lease Extension – Stop the Clock
If your lease has fewer than 80 years remaining, time is not on your side. The moment your lease dips below that threshold, its value can plunge – and the cost of extending it can skyrocket. In extreme cases, you could even lose your property altogether.
The statutory lease extension process, set out in the 1993 Leasehold Reform Act, allows you to add 90 years to your term and reduce ground rent to zero. You will need to pay your freeholder a premium and cover professional fees, but it’s a vital way to protect your home’s value and buy yourself time to plan your next move.
Think of it as hitting the pause button on a ticking clock.
2. Right to Manage – Partial Power
The Right to Manage (RTM) lets leaseholders in buildings with at least two flats take over management from the freeholder – without having to prove bad behaviour. You set up an RTM company, elect directors, and run the building yourselves.
But there’s a catch: the freeholder can still join your management committee. They also retain control over lease length, ground rent, and the right to add flats or rent out land. RTM can be a useful tool, but it’s not full control – more like a chaperoned independence.
3. Collective Enfranchisement – Full Control
This is the gold standard for leaseholders: buying the freehold together. Once the majority of leaseholders in a building qualify and agree, the freeholder is legally obliged to sell.
Owning the freehold allows you to:
- Set your own service charges and ground rents
- Grant yourselves 999-year leases
- Take full control over building management
The process can be complex and requires unity among neighbours, but the rewards are huge. In many cases, property values rise by 15% or more. And with service charges up over 40% in the past five years – with some households paying triple what’s fair – the financial benefits can be immediate.
Much of the overcharging in leasehold buildings comes from inflated insurance premiums (often with commissions pocketed by the landlord) and overpriced maintenance contracts awarded to “friendly” suppliers. Freehold ownership stops these abuses in their tracks.
4. Commonhold – A Work in Progress
Commonhold was introduced in 2002 as a potential replacement for leasehold. Under Commonhold, each flat owner holds a freehold interest in their unit and a share in the common parts. Management decisions are made collectively, either directly or via a managing agent who answers to the owners.
The benefits are clear: no ground rent, no arbitrary lease terms, and no distant landlord dictating decisions.
So why hasn’t it taken off? By 2023, just 183 properties in the UK had adopted Commonhold. The main reason: consensus is hard. One owner’s “essential upgrade” may be another’s “unaffordable luxury.” Without a strong culture of cooperation, deadlock is common.
While upcoming reforms may give Commonhold fresh momentum, I believe owning the freehold outright remains the strongest option. Commonhold gives you shared management; freehold ownership gives you the asset itself – and the ultimate say over its future.
The Path Forward
Leasehold can feel like a trap, but it’s not an unbreakable one. Whether you extend your lease, take on management rights, or work with neighbours to buy the freehold, every step you take increases your security, your influence, and your property’s value.
Yes, the process can be daunting. Yes, it can be expensive. But the alternative – sitting back while costs spiral and your lease ticks away – is far worse.
I’ve been through it. I know the sleepless nights, the uncertainty, and the sense of being at the mercy of someone else’s decisions. I also know the relief of finally holding the keys – not just to your flat, but to the building itself.
That’s why I founded The Freehold Collective. We’re here to help leaseholders fight back, navigate the legal maze, and claim the rights they’ve been denied for too long.
The system may be stacked against you, but it’s far from unbeatable. Take the first step now. Your home – and your future – are worth fighting for.
For more information, contact Mike and his team at The Freehold Collective
