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Freeholders living on a private estate with obligations to pay service charges for the upkeep of common areas, do not enjoy the same protection as leaseholders even though they are paying for the same service and possibly even into the same fund.
The Government has passed a number of Acts of Parliament giving rights and added protection to leaseholders of flats that pay service charges which do not apply to freeholders. Indeed there is even a different legal term for a freehold service charge: 'rent charge'.
“ARMA has taken the decision to produce guidance for freeholders to improve their understanding of the service charge system and raise awareness of the rights they do have.” Said Peter Dening, Chairman of ARMA and managing agents with Pennycuick Collins.