Can a Share of Freehold company change managing agent?

Yes. The freehold company appoints and dismisses its own managing agent. The decision is made by the board of directors of the freehold company in line with the company's articles of association, subject to the notice period in the existing management agreement.

Do all shareholders need to vote?

Normally no. Day-to-day appointment of a managing agent sits with the board of directors. Some articles of association require a shareholder vote for significant decisions - we always check the articles before making a recommendation.

What about lease extensions during the handover?

Lease extensions in Share of Freehold blocks are usually granted by mutual agreement. Any extensions in progress should be flagged in the handover and the new agent will continue to coordinate with the directors and solicitors.

Will ground rent collection be transferred?

Yes. If the freehold company collects ground rent, those records and any arrears are transferred along with service charge data. East Valley can handle ground rent collection as part of management.

How long does the transition take?

Typically 8 to 12 weeks from the date notice is served. We produce a written timeline at the start so directors and shareholders know what to expect at each stage.

Are commissions on insurance disclosed?

East Valley does not accept commissions on building insurance, contractors or utilities. Every quote presented to the freehold company is the genuine market price.

Can you take over a small Share of Freehold block?

Yes. We manage Share of Freehold blocks of all sizes - from two-flat conversions to large purpose-built developments. Small blocks are particularly welcome.

What if our reserve fund is low?

We review the current reserve fund position and produce a recommended schedule of major works and a reserve fund build-up plan, so the freehold company has a clear long-term financial picture.

Back to Changing Managing Agent

Share of Freehold Handover

How to Change Managing Agent for a Share of Freehold Block

A practical guide for Share of Freehold directors in Greater London and Essex. Notice periods, board resolutions, documents, reserve funds, compliance and the common mistakes to avoid.

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Challenges for Share of Freehold Directors

Share of Freehold directors carry the full legal responsibility of a landlord - service charge accounting, statutory consultation, building safety and compliance - usually as unpaid volunteers. A weak managing agent leaves directors exposed: missed Section 20 notices, late accounts, insurance commissions hidden in premiums and contractor work commissioned without proper oversight. The decision to change agent is rarely emotional; it is about reducing personal risk to the directors and getting better value for shareholders.

How to Appoint a New Managing Agent

Review the existing agreement. Check the notice period, termination clauses and any auto-renewal date.

Board resolution. The directors of the freehold company pass a resolution to terminate and appoint a new agent.

Notice served. Written notice goes to the outgoing agent in the form required by the contract.

Shareholder communication. A clear letter explains the change to every shareholder and resident.

Handover. Records, funds, contractors and compliance documents are transferred.

Documents to Obtain

Memorandum and articles of association
Companies House filings (latest confirmation statement and annual accounts)
Share register and details of any unallocated shares
Freehold title and any superior leases
Copies of every leaseholder lease
Current management agreement
Service charge budgets and accounts
Bank mandates and statements

Service Charge Accounts

The freehold company is responsible for producing service charge accounts that comply with section 21 of the Landlord and Tenant Act 1985. On handover we obtain the latest reconciled accounts, the current year budget, all demands issued, aged debt analysis and bank statements. East Valley then sets a transparent budget for the year ahead and presents it to the board for approval.

Reserve Funds

Reserve and sinking funds belong to the leaseholders on statutory trust under section 42 of the Landlord and Tenant Act 1987 and must be transferred in full to the new agent's designated client account. We reconcile the balance against the latest accounts and report any discrepancy directly to the board before drawing on the fund.

Compliance Records

Fire Risk Assessment and remedial action tracker
EICR for communal electrical systems
Lift LOLER reports
Asbestos register and management plan
Legionella risk assessment and water hygiene logs
Emergency lighting and fire alarm test records
EWS1 form where applicable
Buildings insurance schedule and claims history

Transition Process

The transition is run as a single tracked project. Each request to the outgoing agent is logged, every fund transfer is reconciled, every compliance document is audited against statutory requirements, and the board receives a written status update at agreed intervals. Day-one of our appointment begins with a confirmed transfer of records and a clear written communication to every shareholder and resident.

Common Mistakes to Avoid

Serving notice without first checking the contractual notice period
Failing to pass a properly minuted board resolution
Letting service charge demands lapse during the transition
Not auditing compliance documents on receipt
Allowing the outgoing agent to keep reserve fund interest
Forgetting to update bank mandates and direct debit details
Not novating long-term contracts (lifts, cleaning, gardening)

Case studies

Featured Case Studies

Real examples of managing agent handovers and the outcomes that followed.

RTM company managing agent handover case study

RTM Handover

How We Helped an RTM Company Change Managing Agent

An RTM company in East London moved to East Valley after years of poor service. We managed the handover, recovered arrears, re-let a vacant commercial unit and rebuilt the service charge budget on a fully transparent basis.

RTM Management Changing Managing Agent

Utility billing arrears reduction case study

Utility Rebilling

How We Reduced Utility Billing Arrears in a 60-Flat Development

A 60-flat development was losing thousands to unbilled communal heating and unregistered accounts. We rebuilt the rebilling system, introduced flexible payment options and brought arrears under control.

Utility Billing Service Charge Management

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Frequently Asked Questions

Ready to change managing agent?

Book a free, confidential review of your current arrangements. We will read your existing management agreement, set out the notice period and produce a clear handover timeline for your board.

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