# Freehold company

A company owned by the leaseholders of a building that owns the building's freehold, and so is the landlord under the flat leases.

Also called: freehold management company, nominee purchaser company, share of freehold company.

Leaseholders usually form a freehold company to buy the freehold, either by agreement with the freeholder or by using the legal right of [collective enfranchisement](https://runyourblock.co.uk/glossary/collective-enfranchisement). Once the purchase completes, the company becomes the landlord.

## How it differs from an RTM company

|                                    | Freehold company       | RTM company                           |
| ---------------------------------- | ---------------------- | ------------------------------------- |
| Owns the building                  | Yes                    | No                                    |
| Receives ground rent               | Yes, if any is payable | No, it stays with the landlord        |
| Can grant lease extensions         | Yes                    | No                                    |
| Can enforce leaseholders' promises | Yes, as landlord       | Yes, but it can never forfeit a lease |
| Has to buy anything                | Yes, the freehold      | No                                    |

## Running it

The company has the same service-charge duties as any landlord, plus the usual company duties: filings, accounts and meetings. Its articles (and any agreement between the members) decide how it is run, so read them early.

## Related terms

- [Share of freehold](https://runyourblock.co.uk/glossary/share-of-freehold)
- [Collective enfranchisement](https://runyourblock.co.uk/glossary/collective-enfranchisement)
- [RTM company](https://runyourblock.co.uk/glossary/rtm-company)
- [Residents' management company (RMC)](https://runyourblock.co.uk/glossary/residents-management-company)

## Sources

- [Leasehold Reform, Housing and Urban Development Act 1993, Part 1 Chapter 1 (collective enfranchisement)](https://www.legislation.gov.uk/ukpga/1993/28/part/I/chapter/I)
- [Companies House: About flat management companies, RTM companies and commonhold associations](https://www.gov.uk/government/publications/flat-management-and-right-to-manage-rtm-companies/about-flat-management-companies-rtm-companies-and-commonhold-associations)

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Updated 22 October 2026. Source: https://runyourblock.co.uk/glossary/freehold-company