Protecting your investment. Managing your obligations. Keeping leaseholders onside. Compliance-led block management for freeholders across North, East London and Essex.
As a freeholder of a leasehold residential block, you carry obligations that go beyond owning the building. The leases that govern the relationship between you and your leaseholders impose management duties, service charge obligations, and statutory requirements that must be met correctly — whether you manage the building yourself or appoint a managing agent to do it on your behalf.
The consequences of getting it wrong are not minor. Leaseholders have statutory rights to challenge service charges, to apply to the First-tier Tribunal on grounds of poor management, and — in some circumstances — to acquire the right to manage away from the freeholder entirely. Poor management does not just create operational problems. It creates legal and financial exposure.
Neon Property Services provides block management for freeholders of leasehold residential blocks across North, East London and Essex. We manage the building on your behalf — compliantly, transparently, and with the reporting you need to understand the financial and operational position of your investment at all times.
The freeholder's obligations under a standard residential lease and statute are substantial — and when not met correctly, they give leaseholders grounds to challenge costs, apply for management orders, or pursue RTM.
| Obligation | Exposure if not met | How Neon manages it |
|---|---|---|
| Service charge demands issued correctly | Incorrectly issued demands are unenforceable. Service charges become irrecoverable after 18 months if accounts are not certified. | Demands issued in correct form under the lease. Accounts prepared and certified annually to RICS standard. |
| Section 20 consultation on qualifying works | Non-compliance caps recovery at £250 per leaseholder regardless of actual cost. Potentially large unrecoverable shortfall. | Section 20 process managed correctly from notice of intention to completion. No works proceed without completed consultation. |
| Buildings insurance — adequate cover, conditions met | Claim failure at point of maximum need. Potential liability to leaseholders if building is uninsured or underinsured. | Policy arranged and renewed. Cover level reviewed. Policy conditions documented, monitored, and communicated to leaseholders. |
| Fire safety — fire risk assessment, communal safety measures | Regulatory enforcement. Potential criminal liability. Leaseholders entitled to challenge on management grounds. | FRA commissioned on takeover if not current. Actions managed to completion. Compliance calendar maintained. |
| Building Safety Act obligations | Regulatory non-compliance. Enforcement action. Reputational and financial consequences for freeholder. | Obligations assessed for each building. Compliance managed in accordance with the building's classification. |
| Leaseholder information rights — accounts, certificates, notices | Tribunal applications. Management orders. RTM risk if leaseholders lose confidence in management. | All statutory information provided within required timeframes. Online portal for leaseholder document access. |
Leaseholders in a qualifying building have a statutory right to take management away from the freeholder through the Right to Manage process. It does not require the freeholder's consent. It does not require evidence of mismanagement. It is a no-fault right that leaseholders can exercise if they meet the qualifying criteria.
The RTM process is triggered by leaseholders who have lost confidence in the management of their building. Poor service charge transparency, compliance failures, unresponsive agents, or major works badly handled are the situations that consistently lead leaseholders to start the RTM conversation.
A freeholder whose building is well managed — whose leaseholders receive clear accounts, whose compliance is current, whose building is maintained properly, and who communicates openly — is a freeholder whose leaseholders have no motivation to pursue RTM. Professional management is not just about meeting legal obligations. For a freeholder, it is the most effective way of preserving control of the management of your own asset.
We have taken over management from freeholders who lost RTM applications they should not have lost.
In each case, the leaseholders pursued RTM not because they particularly wanted to run the building themselves, but because the management had become so poor that taking control felt like the only option. Good management makes RTM unnecessary. It is that straightforward.
Our freeholder management service covers the full scope of obligations — financial, compliance, operational, and leaseholder relations.
Designated client account per block. Annual budget prepared, approved, communicated. All expenditure documented. Annual accounts certified to RICS Service Charge Code.
Fire risk assessment, insurance, safety certificates, and building safety obligations tracked and managed. Compliance calendar on BlocksOnline. Nothing expires without advance notice.
Service charge demands issued correctly. Leaseholder enquiries handled professionally. Statutory information requests responded to within required timeframes. Portal access for leaseholders.
Ground rent collection where applicable. Consent applications managed — assignments, subletting, alterations. Deed of covenant and licence to alter management on flat sales.
Breach notices issued and managed through the correct process. Communal area violations, unauthorised alterations, subletting without consent — all dealt with formally and documented.
Section 20 consultation managed correctly. Contractor tender managed. Works supervised on the freeholder's behalf. 10% supervision fee on works cost, agreed in advance.
A leasehold block generates income streams and administrative obligations that sit with the freeholder and require careful management.
| Income / Obligation | What it is | Neon's role |
|---|---|---|
| Ground rent | Annual payment from leaseholders to the freeholder under the lease. Note: ground rents on new leases are prohibited under the Leasehold Reform (Ground Rent) Act 2022 but may apply to existing leases. | Demands issued and collection managed where ground rent applies. Compliance with the 2022 Act confirmed. |
| Consent to assign | Freeholder consent required when a leaseholder sells their flat and the lease requires it. Application fee typically charged. | Application managed, conditions of consent checked, licence prepared. Freeholder kept informed and approval obtained. |
| Consent to sublet | Freeholder consent to sublet where required by the lease. | Application managed, relevant conditions checked, consent or refusal communicated with reasons. |
| Licence to alter | Freeholder consent to alterations to the flat, typically involving works that affect the structure or services. | Application reviewed, conditions assessed, licence to alter prepared where appropriate. Surveyor involvement coordinated where required. |
| Deed of covenant | On sale of a flat, the buyer typically covenants directly with the freeholder to observe the lease terms. | Deed prepared and executed as part of the assignment process. Freeholder's solicitors involved where the lease requires it. |
| Notice of charge | Where a leaseholder mortgages their flat, the lender typically registers a notice of charge with the freeholder. | Notices received, registered, and acknowledged. Administration fee charged where the lease permits. |
A note on ground rent under the Leasehold Reform (Ground Rent) Act 2022.
The Act prohibits ground rents above a peppercorn on new regulated leases granted on or after 30 June 2022. Ground rents on existing leases granted before that date continue to apply under the terms of those leases, subject to the correct demand procedure. If you have questions about how the Act affects your portfolio, we advise on the position for each block.
A freeholder managing multiple blocks needs visibility of each one without being involved in the operational detail of every building. Our online portal on BlocksOnline gives you real-time access to:
Where a freeholder has multiple blocks under management with Neon, we provide a consolidated reporting view across the portfolio. You are never left wondering what is happening with your building.
We manage residential blocks for freeholders across North, East London and Essex. Compliant, transparent management that protects your investment and keeps your leaseholders onside.
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