Help & advice

Frequently asked questions.

Clear answers on leasehold, service charges, Residents' Management Companies, Right to Manage and living in a managed development.

96 questions · Last reviewed September 2026

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01

About Butlin Property Services

Who are Butlin Property Services?

Butlin Property Services is a specialist leasehold and freehold managing agent based in Clarendon Park, Leicester, managing residential blocks and estates since 1997. We act for Residents' Management Companies (RMCs), Right to Manage (RTM) companies, freeholders and developers.

Where are you based and which areas do you cover?

Our office is at 40 Howard Road, Clarendon Park, Leicester, LE2 1XG. We manage developments across Leicester, Leicestershire, the East Midlands and the Home Counties, and further afield.

What types of property do you manage?

We manage leasehold apartment blocks, mixed-use and mixed-tenure developments, and freehold housing estates. Developments range from small converted houses to large purpose-built blocks and estates with shared roads, landscaping, drainage, lighting and open spaces.

What do you look after in a leasehold apartment block?

We oversee the communal areas and the structure of the building, in line with the repairing obligations in the lease. This typically includes:

  • Communal lighting, emergency lighting and electrics, including periodic Electrical Installation Condition Reports (EICRs)
  • Communal plumbing, drainage, gutters and water supplies
  • Fire safety, including fire risk assessments, fire alarms, fire doors and firefighting equipment
  • Statutory compliance, such as health and safety, water hygiene (legionella), asbestos management and lift inspections
  • Cleaning, gardening and upkeep of shared areas such as entrances, stairwells, corridors, car parks and bin stores
  • Door entry and security systems where fitted
  • Structural and external repairs to roofs, walls, windows and foundations, where the lease makes these the responsibility of the landlord or management company
  • Cyclical redecoration of communal and external areas
  • Planned and major works, including Section 20 consultation with leaseholders

Exactly what is covered depends on the lease, which sets out who is responsible for each part of the building.

Are you a member of a redress scheme?

Yes. We are a member of The Property Ombudsman (TPO), which gives leaseholders and clients access to independent redress if a complaint cannot be resolved with us.

Are your property managers qualified?

Yes. Our property managers are qualified through The Property Institute (TPI), the professional body for residential leasehold management, and we keep up to date with industry standards.

How is service charge money protected?

Client funds are held in a dedicated client trust account with Barclays Bank, separate from our own company money. The accounts are checked every year by independent accountants.

How many staff do you have?

We have a team of 20 staff. We are small enough to give every development proper attention, with the experience to plan its long-term management.

How do I contact you?

Call 0116 270 3705, email enquiries@butlinps.co.uk, or use our general enquiry form at butlinps.co.uk/general-enquiry. If you would like us to manage your development, please use our new business enquiry form at butlinps.co.uk/business-enquiry. Residents and owners can report maintenance issues online at butlins.fixflo.com.

02

Leasehold and freehold basics

What is a managing agent?

A managing agent looks after the shared parts of a building or estate on behalf of the freeholder, RMC or RTM company. This usually covers service charges, repairs, insurance, contractors, health and safety compliance and communication with residents.

What is the difference between leasehold and freehold?

A leaseholder owns the right to live in a property for a fixed number of years under a lease. A freeholder owns the building and the land outright. Most flats in England are leasehold, and most houses are freehold.

What does my lease tell me?

Your lease sets out what you own, what the landlord or management company must maintain, what you must pay towards, and the rules for living in the building. It is the first document to check for any question about repairs, charges or alterations.

Who is responsible for repairs inside my flat?

In most leases, the leaseholder is responsible for the inside of their own flat, including internal walls, fixtures and fittings. The structure, roof, exterior and communal areas are usually the responsibility of the landlord or management company. Always check your own lease, because wording varies.

What is share of freehold?

Share of freehold means the leaseholders jointly own the freehold, usually through a company. Each flat still has a lease, but the owners control the building collectively.

What is commonhold?

Commonhold is a form of ownership where each owner holds their flat freehold and the building is run by a commonhold association of the owners. It is rare today, but the government plans to make it the default for new flats in future.

03

Service charges, reserve funds and ground rent

What is a service charge?

A service charge is your share of the cost of running, maintaining, repairing and insuring the building or estate. Your lease sets out what can be charged and how the costs are split between flats.

What do service charges usually pay for?

Typical items include buildings insurance, communal cleaning, electricity for shared areas, gardening, repairs, fire safety checks, lift servicing, management fees, accountancy, and contributions to a reserve fund.

How is the service charge budget set?

Each year the managing agent prepares a budget based on the previous year's costs, contracts, planned works and advice from the directors or freeholder. For resident-controlled companies, the directors approve the budget before demands are issued.

Do service charges have to be reasonable?

Yes. By law, service charges can only be recovered if the costs are reasonably incurred and the works or services are of a reasonable standard. Leaseholders can ask the First-tier Tribunal (Property Chamber) to decide whether a charge is reasonable.

Can I see how the money has been spent?

Yes. Leaseholders can ask for a written summary of costs and can then inspect the invoices, receipts and other supporting documents. We also provide year-end service charge accounts.

What is a reserve fund?

A reserve fund, sometimes called a sinking fund, is money collected over time to pay for large future costs such as roof replacement, redecoration or lift renewal. It spreads the cost fairly and avoids sudden large bills. Whether a reserve can be collected depends on your lease.

What happens if a leaseholder does not pay their service charge?

We follow a clear arrears process of reminders, then formal steps if needed, such as recovery through the county court. Unpaid charges mean other leaseholders effectively carry the cost, so prompt collection protects everyone.

Can a service charge be demanded for costs from years ago?

Generally, costs must be demanded within 18 months of being incurred, unless leaseholders were told in writing within that time that they would be charged later. This is known as the section 20B rule.

What is ground rent?

Ground rent is a separate payment some leaseholders make to the freeholder under the lease. It is not part of the service charge. Most new leases since June 2022 have a "peppercorn" ground rent of zero, and the government has proposed capping existing ground rents at £250 a year.

What is an administration charge?

An administration charge is a fee for a specific service to one leaseholder, such as answering a sale enquiry, approving an alteration or chasing arrears. These charges must also be reasonable, and a summary of your rights must come with any demand.

04

RMCs and directors

What is a Residents' Management Company (RMC)?

A Residents' Management Company is a company, usually owned by the leaseholders or homeowners as members, that is responsible for managing a residential development. Some RMCs own the freehold; others have management duties set out in the leases.

Am I automatically a member of the RMC?

In many developments, yes. The lease or transfer often requires each owner to become a member or shareholder of the management company, and membership passes to the new owner when a property is sold.

What do RMC directors do?

Directors make decisions on behalf of the company, such as approving budgets, major works and contracts. They also have legal duties under company law, including filing accounts and confirmation statements with Companies House.

Do RMC directors get paid?

Usually not. RMC directors are normally volunteer residents. A managing agent takes on much of the day-to-day work so directors can focus on key decisions.

Are RMC directors personally liable?

Directors are generally protected by the company's limited liability, provided they act honestly, reasonably and within their powers. Many RMCs take out directors' and officers' insurance for extra protection, and we can advise on this.

Do we lose control if we appoint a managing agent?

No. The directors set the priorities and make the decisions. The managing agent provides the professional knowledge, administration and practical support to carry them out.

Can a managing agent act as company secretary?

Yes. We can act as company secretary, provide a registered office address, arrange AGMs, coordinate the company accounts and file the annual confirmation statement.

Does an RMC need to hold an AGM?

It depends on the company's articles of association. Many RMCs hold an annual meeting anyway, as it is a good way to approve the budget, elect directors and keep residents informed.

What happens if nobody wants to be a director?

A company must have at least one director. If no one volunteers, the company risks being struck off, which can cause serious problems for the development. We can help explain the role to residents and encourage new directors to come forward.

05

Right to Manage (RTM)

What is the Right to Manage?

The Right to Manage lets qualifying leaseholders of flats take over management of their building from the landlord by forming an RTM company. The landlord still owns the freehold, but the RTM company runs the building.

Do we need to prove the landlord is managing badly?

No. Leaseholders do not need to show any fault by the landlord or current agent to claim the Right to Manage.

Does our building qualify for the Right to Manage?

In general, the building must be self-contained, contain at least two flats, and at least two-thirds of the flats must be held on long leases. Since March 2025, buildings with up to 50% non-residential space can qualify, up from 25%. At least half the qualifying flats must join the RTM company.

Do we have to pay the landlord's legal costs for an RTM claim?

In most cases, no. Since March 2025, leaseholders are generally no longer required to pay the landlord's costs of an RTM claim.

What does an RTM company take on?

The RTM company takes on the landlord's management duties under the leases, including repairs, insurance, service charges and consultation on major works. Most RTM companies appoint a managing agent to carry out this work.

Can you help us set up an RTM company?

We can explain the process, work alongside your solicitor, and be ready to take over management on the date the RTM company acquires the right.

06

Freehold estates and estate charges

What is an estate charge?

An estate charge is a regular payment freehold homeowners make towards the upkeep of shared areas on a private estate. These can include unadopted roads, landscaping, play areas, drainage, street lighting and open spaces.

Why do I pay an estate charge if I own my house freehold?

On many newer estates, the roads and green spaces are not adopted by the local council. Instead, they are owned by a management company, and your property deeds require you to contribute to their upkeep.

Who manages a freehold estate?

Usually an estate management company, which may be controlled by the residents or by the developer. Many appoint a managing agent to set budgets, collect charges, arrange contractors and keep residents informed.

Can the residents take control of an estate management company?

Often, yes. Many developers hand control to the homeowners once the estate is complete. Where that is planned, we can support the handover and help the new resident directors get started.

Are there new rights for homeowners who pay estate charges?

The Leasehold and Freehold Reform Act 2024 includes new rights for freehold homeowners on managed estates, such as information about charges and the right to challenge their reasonableness. These parts of the Act are not yet in force and depend on further regulations.

07

Major works and Section 20

What is Section 20 consultation?

Section 20 consultation is the legal process a landlord or management company must follow before carrying out major works or entering long-term contracts that will be paid for through the service charge. It gives leaseholders a say and a chance to comment on costs.

When is Section 20 consultation needed?

It is needed when works will cost any one leaseholder more than £250 including VAT, or when a contract lasting over 12 months will cost any leaseholder more than £100 in any year.

What are the stages of Section 20 consultation for major works?

There are usually three stages:

  1. A notice of intention describing the works, with 30 days for leaseholders to comment and nominate a contractor.
  2. A notice of estimates with at least two quotes, including at least one from a contractor unconnected with the landlord, with a further 30 days for comments.
  3. A notice of reasons, needed only if the lowest quote is not chosen.

What happens if Section 20 consultation is not carried out?

Without proper consultation, each leaseholder's contribution to the works can be capped at £250, unless the First-tier Tribunal grants dispensation. That is why we follow the process carefully on every qualifying project.

Can leaseholders choose the contractor?

Leaseholders can nominate a contractor during the first stage, and we will try to get a quote from them. The final choice rests with the landlord or management company, which must take leaseholders' comments into account.

How do you plan for major works?

We inspect the development regularly and prepare a long-term maintenance plan, so large projects such as roofs, windows or redecoration are anticipated. Where the lease allows, a reserve fund helps pay for them without sudden large bills.

08

Buildings insurance

Who insures the building?

In most leasehold blocks, the landlord or management company insures the whole building, and the cost is recovered through the service charge. Your lease will say who must insure and on what basis.

Do I need my own insurance as a leaseholder?

You will usually need contents insurance for your own belongings. The buildings policy covers the structure, but it is worth checking whether your lease or mortgage lender requires anything else.

How do I make a claim on the buildings insurance?

Report the damage to us as soon as possible, with photos and a description. We will advise whether it is likely to be covered and help you with the claim. Some claims involve an excess, which may be payable by the leaseholder whose flat the damage started in, depending on the lease.

Can I see a copy of the buildings insurance policy?

Yes. Leaseholders have a legal right to a summary of the insurance cover and to inspect the policy. Contact us and we will provide the details.

Are insurance commissions changing?

Yes, reforms are on the way. The government plans to replace commissions paid to landlords and agents with a transparent "permitted insurance payment", which must be disclosed to leaseholders. The details will be set by regulations, expected from 2027.

09

Building and fire safety

What health and safety checks are needed in a block of flats?

Common checks include a fire risk assessment of the communal areas, emergency lighting and fire alarm testing, communal electrical testing, water hygiene (legionella) risk assessments, asbestos surveys for older buildings, and lift servicing and insurance inspections where there is a lift.

How often is a fire risk assessment needed?

The law requires the fire risk assessment to be kept up to date and reviewed regularly, and whenever there is a significant change. Many buildings review it every year, and higher-risk buildings more often.

Who is the "responsible person" for fire safety?

For the communal parts of a block, the responsible person is usually the freeholder, RMC or RTM company that controls those areas. A managing agent often carries out the practical fire safety work on their behalf.

What is a higher-risk building?

Under the Building Safety Act 2022, a higher-risk building is one that is at least 18 metres or seven storeys tall with at least two residential units. These buildings must be registered with the Building Safety Regulator and have an accountable person responsible for managing building safety risks.

Are leaseholders protected from cladding and building safety costs?

Many are. The Building Safety Act gives qualifying leaseholders in buildings over 11 metres or five storeys protection from cladding remediation costs and caps on other historical safety costs. Whether you qualify depends on your lease and the building, so ask us to explain the position for your development.

What is a leaseholder deed of certificate?

It is a form leaseholders complete to confirm whether their lease qualifies for building safety cost protections. It helps the building owner work out who can be charged for historical safety defects.

What is an EICR and how often is one needed?

An Electrical Installation Condition Report (EICR) is an inspection and test of the fixed electrical installation by a qualified electrician. For the communal areas of a block, one is generally recommended at least every five years, or sooner if the previous report advises it. We arrange EICRs and any remedial work they identify.

10

Maintenance and repairs

How do I report a repair in a communal area?

Report it online at butlins.fixflo.com, our maintenance reporting portal. During office hours you can also call 0116 270 3705 or email enquiries@butlinps.co.uk. Photos and a clear location help us deal with it faster.

What counts as an emergency repair?

Emergencies include water leaks affecting other flats, loss of power to communal areas, fire safety system faults, security failures such as a broken entrance door, and anything that puts people at risk. During office hours, phone us on 0116 270 3705.

Who do I contact about an emergency out of hours?

Outside office hours, check the notice board in your building or go to butlins.fixflo.com. Both list the out-of-hours contractors to call for your development, and you can report the issue on the portal. If there is a risk to life, call 999 first.

Who deals with a leak from the flat above?

If the leak comes from inside another flat, it is usually that leaseholder's responsibility to fix. If it comes from the roof, the structure or shared pipes, it is normally dealt with by the management company. Contact us and we will help identify the source.

Can I make alterations to my flat?

Many leases require written consent before structural alterations, changes to flooring, or new windows or doors. Check your lease and contact us before starting work, so we can confirm what approval is needed.

Can I let or sublet my flat?

Most leases allow subletting, but some require notice or consent, and the lease rules still apply to your tenants. Let us know who is living in the property so we can contact them in an emergency.

Can I keep a pet in my flat?

It depends on your lease. Some leases ban pets, others require consent. Contact us before bringing a pet into the building.

How often are communal areas inspected?

Our property managers carry out regular site inspections to check cleaning, grounds maintenance, repairs and health and safety. The frequency is agreed with each development.

11

Buying and selling

What is a leasehold management pack?

A management pack is the set of information a buyer's solicitor needs about the building and its management. It usually includes the LPE1 form, service charge budgets and accounts, insurance details, planned works and any disputes.

What is an LPE1 form?

The LPE1 is a standard enquiries form used in leasehold sales in England and Wales. The managing agent completes it with details of service charges, ground rent, reserve funds, insurance, major works and building safety.

How do I order a management pack when selling my flat?

Your solicitor, or you, can contact us to order a pack. We will confirm the fee and timescale and send the information directly to your solicitor once it is paid for.

How long does a management pack take?

We aim to return management packs promptly once payment is received. Delays usually come from missing information, so ordering the pack early in the sale helps.

Why is there a fee for a management pack?

The fee covers the time taken to collect, check and certify the information for your sale. It is charged to the seller rather than to all leaseholders through the service charge.

What do I need to do after buying a flat?

Your solicitor will usually send us a notice of assignment and, where the lease requires it, a deed of covenant. If the development has an RMC, the share or membership certificate will also transfer to you. Once registered, we will set up your service charge account.

What happens to service charges when a flat is sold?

Service charges are usually apportioned between buyer and seller on completion by the solicitors. Any arrears must normally be cleared before or at completion.

12

Changing managing agent

Can we change our managing agent?

Yes. If you are an RMC, RTM company or freeholder, you can usually change managing agent by giving notice under your current management agreement. Check the notice period and any fixed term first.

How do we change managing agent?

  1. Check the notice terms in your current management agreement.
  2. Ask us for a free, no-obligation management and service charge assessment through butlinps.co.uk/business-enquiry.
  3. If the directors decide to switch, serve notice on the current agent.
  4. We contact the outgoing agent to arrange handover of funds, records and contracts.
  5. We write to all residents to introduce ourselves and explain what happens next.

What information is handed over when changing agent?

The outgoing agent should transfer service charge and reserve funds, accounts, leaseholder records, contracts, insurance details, health and safety reports and any ongoing issues. We manage this process so directors do not have to chase it.

Will changing managing agent disrupt residents?

A well-planned handover causes very little disruption. Residents receive clear information about the change, new payment details and how to contact us.

Why do developments change managing agent?

Common reasons include poor communication, slow responses, rising management costs, inadequate maintenance and a lack of transparency about how money is spent.

Is there any obligation if we ask for an assessment?

No. There is no obligation to change managing agent simply because you speak to us. The assessment helps your directors compare cost and service and make an informed decision. Request one at butlinps.co.uk/business-enquiry.

13

Leasehold reform

What is the Leasehold and Freehold Reform Act 2024?

It is the main law reforming leasehold in England and Wales. Some parts are already in force, and many others will be introduced through regulations from 2027.

What has already changed?

Since January 2025, leaseholders no longer need to have owned their flat for two years before extending the lease or buying the freehold. Since March 2025, more mixed-use buildings qualify for the Right to Manage, and leaseholders generally no longer pay the landlord's costs of an RTM claim.

What changes are coming to service charges?

The government plans a standard format for service charge demands, annual reports for leaseholders, and better access to information about the building. These changes are expected from 2027.

Can I extend my lease to 990 years?

The 2024 Act allows leaseholders of flats to extend their lease to 990 years at a peppercorn ground rent. The new valuation rules, including removing "marriage value", depend on further regulations, and the government has been consulting on the rates in 2026.

Will ground rents be capped?

The government has proposed capping existing ground rents at £250 a year, falling to a peppercorn after 40 years. This is in the draft Commonhold and Leasehold Reform Bill and is not yet law.

Will managing agents be regulated?

The government has consulted on mandatory professional qualifications for managing agents, and Parliament's Housing Committee has recommended an independent regulator. Our property managers are already qualified through The Property Institute.

Is leasehold being abolished?

The government plans to make commonhold the default tenure for new flats through the Commonhold and Leasehold Reform Bill. Existing leasehold flats will not change overnight, and the Bill has not yet become law.

How will leasehold reform affect RMCs and RTM companies?

Resident-controlled companies will need to follow the new rules on service charge information, insurance and fees as they come in. We keep track of the changes and will guide directors through what each one means for their development.

14

Complaints and advice

How do I make a complaint?

Contact your property manager first, as most issues can be resolved quickly. If you are still unhappy, put your complaint in writing to enquiries@butlinps.co.uk and it will be handled under our complaints procedure.

What if I am not happy with the outcome of my complaint?

If our complaints procedure does not resolve the issue, you can refer it to The Property Ombudsman, an independent and free redress scheme. The Ombudsman normally expects you to complete our internal process first.

Can I challenge my service charge at a tribunal?

Yes. Leaseholders can apply to the First-tier Tribunal (Property Chamber) to decide whether service charges or administration charges are reasonable and payable. We always aim to resolve concerns directly first.

Where can I get free independent leasehold advice?

The Leasehold Advisory Service (LEASE) offers free, government-funded initial advice to leaseholders in England. Citizens Advice can also help.

Still have a question?

Talk to the team

Whether you live in one of our developments or you're a director looking for a new managing agent, we'll give you a straight answer.

Butlin Property Services, 40 Howard Road, Clarendon Park, Leicester, LE2 1XG
Butlin Property Services Professional management. Personal service. Your development, properly managed.
40 Howard Road, Clarendon Park, Leicester, LE2 1XG · 0116 270 3705 · enquiries@butlinps.co.uk

These answers are general guidance based on the law in England as of September 2026. Always check your own lease, and take independent legal advice for your specific situation.