5. Leasehold Disputes

Most disputes between lessee and freeholder occur because the freeholder has the right to choose, while the leaseholder has only the right to challenge.

Government, because of the volume of leaseholders’ complaints, has attempted to modify the absolute power of the freeholder.

What it has not done is alter the power relationship. It is still the freeholder who acts (or not) and the leaseholder who reacts. Freeholders do not need the consent of leaseholders to build penthouses on top of a leasehold block. They can continue even if it is totally against the wishes of all the leaseholders.

But, leaseholders must have consent from the freeholder even to:


-Initiate a repair to the building

-Alter their flat

-Supervise work on the structure or services


‘Consents’ can be charged for. Consent can be refused if the freeholder disagrees.

A leaseholder who continues without ‘consent’ can actually be accused of ‘trespass'

The present 2002 Act has the most complicated rules for leaseholder / freeholder disputes ever set down.

Successive governments have failed to control leasehold disputes, because it is the leasehold system itself which has inherent problems. Leasehold reform leads to an accumulation of rules (called ‘laws’) which are more and more complex, making disputes unfathomable. There is no reason to continue leasehold.

This country is unique in the world in still allowing leasehold for residential developments.