Freeholders of purpose built flats are prone to abuse their power over their Leaseholders because they have little or no funds to pay compensation. Leaseholders may end up suing themselves if they wish to take legal action because compensation may only be available from the communal Service Charge.
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Freeholders often neglect their legal duties to Leaseholders by not undertaking maintenance properties. As many Freeholder companies do not possess liability insurance, Leaseholders can end up having to get compensated from their own service funds. This is unfair. Why should Freeholders be able to exploit this power over Leaseholders for their neglect? I believe all Freeholders should be required to carry compulsory liability insurance so legal actions can be brought against them fairly.