Updated: 12th September, 2025<\/p>\n\n\n\n
As we see more resident involvement in the management of developments, we are beginning to move away from the traditional two-party (freeholder and leaseholder) set-up. To help make things clearer, we\u2019ve outlined below the different parties that may be involved in the lease.\u202f<\/p>\n\n\n\n
The owner of the building and the land it sits on. These can vary from large portfolio freeholders to independent private landlords, to companies owned by the residents who have acquired the freehold from the original developer or through a statutory process such as enfranchisement or the right of first refusal.\u202f <\/p>\n\n\n\n
A limited company formed to protect the interests of homeowners and manage the day-to-day running of a residential building or estate, usually by appointing a managing agent. RMCs are set up by the original developer of the building or estate and following construction. All homeowners are members of the RMC. Following completion of construction, control of the RMC is transferred to the homeowner directors who are appointed by members of the RMC.\u202f<\/p>\n\n\n\n
A limited company established to allow leaseholders to take over the management of their building.\u202f<\/p>\n\n\n\n
The company or companies building a new home or series of homes. The developer often appoints a managing agent at the pre-build stage of a scheme, working in partnership to agree on a long-term management strategy.\u202f Developers retain control of the freehold properties until completion of a phase or all phases of a development, at which point they may retain that title, or pass it to another entity. Managing agents usually play a role in acting in liaison between them and residents through this transition.\u202f <\/p>\n\n\n\n
Similar to the right to manage (RTM) process, there is a level of eligibility required before leaseholders can organise enfranchisement. Once the company is established it performed the role of both freeholder and leaseholder and the statutory process completed it becomes the freeholder and performs the freeholder\u2019s role as set out in the leases. Practically, this is similar to a commonhold arrangement.\u202f <\/p>\n\n\n\n
An entity appointed in the lease or transfer appointed to perform the management obligations. The named manager is appointed by the original developer and is a party to the lease or transfer document. Named Managers have contractual obligations to the residents and to the freeholder. RMCs are one type of named manager. Named managers may also be independent companies or professional managing agents such as FirstPort.\u202f <\/p>\n\n\n\n
In cases where resident-management is in place, a “named manager” is typically in place to avoid the risk of management responsibilities being neglected.\u202f<\/p>\n\n\n\n
Responsible for the affordable housing on a given site. They typically manage their sections themselves or appoint managing agents. In many cases, this differs from the agent chosen to manage the rest of the scheme. The social landlord may be a housing association or the local authority.\u202f <\/p>\n\n\n\n
As the property manager, it\u2019s our job at FirstPort to balance the requirements \u2013 both legal and personal \u2013 of all parties to the agreement to ensure a seamless management experience.\u202f\u202f\u202f <\/p>\n\n\n\n
An example demonstrating the complexity of a typical lease arrangement on a new development over time can be found below.\u202f<\/p>\n\n\n\n
Freeholder<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n In this example this would be the developer of the scheme who will retain control of the development until build phase is complete.<\/p>\n\n\n\n 1. Building commences<\/strong><\/p>\n\n\n\n Managing Agent appointed.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n Managing Agent<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n The developer sets up a Resident Managed Company to transfer the freehold to once the build phases are complete, the developer will appoint a managing agent to work with them from planning stage through mobilisation.<\/p>\n\n\n\n 2. Phased completion of areas of the development<\/strong><\/p>\n\n\n\n Phased mobilisation\/handover of areas to managing agent to look after.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n Residents Management Company (RMC)<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n Whilst the scheme is being built out, the Directors of the RMC will likely be the developer until the scheme is ready to be handed over at which point the developer will work with the managing agent to identify and appoint residents to become Director.<\/p>\n\n\n\n 3. Phased completion of areas of the development<\/strong><\/p>\n\n\n\n Managing Agent works with developer\/freeholder to appoint RMC Directors, liaising with RA in place in the meantime but ultimately taking instructions from Developer\/Freeholder.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n Residents Association \/ Shadow Board<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n It is becoming more popular for a developer to form a residents 4. Completion of development<\/strong><\/p>\n\n\n\n Transfer of land from Freeholder\/Developer to Resident Management Company.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n
association (who have no formal power or control) until they transfer the freehold title to the RMC and appoint resident directors to provide a vehicle for residents to voice their queries and concerns. This will normally be overseen by the managing agent who will act as liaison between the RA and the developer until the resident directors are appointed and in place at which point the RA would likely be dissolved.<\/p>\n\n\n\n