How Our Payment Model Works
Published by Leaseholder Led · Independent guide — 20 March 2026
The Short Version
Leaseholders pay nothing. The incoming managing agent pays a one-off introduction fee when you appoint them. That fee comes from their business development budget — never from your service charges.
That's it. No upfront costs, no hourly rates, no hidden charges.
How the Introduction Fee Works
When your building appoints a new managing agent through Leaseholder Led, the winning agent pays us a standard introduction fee. This is typically 10–20% of their first-year management fees for the building.
Worked Example
100-unit building
Management fee: £350 per unit per year
Total annual management fees: £35,000
Introduction fee (15%): ≈ £5,250
This is a one-off payment. There are no ongoing commissions, no recurring charges, and no cost to leaseholders at any stage.
Where the Fee Comes From
Managing agents actively spend money to win new buildings. Marketing, sales teams, pitches, sponsorships — new business acquisition has a cost. Our introduction fee replaces some of that activity. Instead of spending their budget on cold outreach, the agent receives a qualified, tender-ready opportunity with a group of leaseholders who have already decided to switch.
The fee comes from the agent's existing business development budget. It does not get added to your service charges, and it does not inflate the management fee they quote to your building. Agents quote their standard rates — the same rates they'd quote if you approached them directly.
Why This Model Aligns Our Interests With Yours
The introduction fee structure means we only get paid when you successfully appoint a managing agent you're happy with. If the process stalls, if you decide not to proceed, or if no agent meets your standards — we earn nothing.
This creates a simple alignment: our success depends entirely on your satisfaction.
It's also worth noting what the model doesn't incentivise. We earn the same fee regardless of which agent you appoint. Whether you choose the most expensive finalist or the most affordable one, our fee is a percentage of whatever management fee you agree to — so there's no incentive for us to steer you toward a particular agent. The decision is yours at every stage.
A Familiar Model
This isn't a novel arrangement. Introduction-based fee models are well established across professional services:
- •Recruitment agencies are paid by the hiring company, not the candidate. The candidate gets a free service; the employer pays a fee for a qualified introduction.
- •Mortgage brokers are typically paid by the lender, not the borrower. The borrower gets free advice; the lender pays a commission for the introduction.
- •Insurance brokers operate similarly — the insurer pays, the policyholder benefits from independent comparison and advice.
In each case, the party being introduced (the employer, lender, or insurer) pays because they're gaining a qualified client they'd otherwise have to spend money acquiring. The same logic applies here: the managing agent gains a building they'd otherwise need to find and win through their own sales efforts.
Common Questions
Do agents increase their fees to cover your commission?
No. Agents quote their standard management fees — the same rates they'd offer if you approached them directly. Our introduction fee is a business development cost for the agent, not a line item passed through to leaseholders. If anything, agents competing in a structured tender are incentivised to quote competitively because they know they're being compared side by side.
Does the fee come out of our service charges?
No. The introduction fee is paid by the agent from their own business development budget. It is completely separate from the service charges collected from leaseholders. Your service charges fund the management of your building — nothing else.
What if we don't appoint anyone?
You pay nothing. We pay nothing. The model is entirely success-based. If the process doesn't result in an appointment you're happy with, there is no fee.
How do we know you're not biased toward agents who pay more?
The fee is a standard percentage of the agent's first-year management fees — it's not a bidding process where agents compete on commission. Every agent in our tender process is evaluated against the same published criteria, with documented scoring and full transparency at every stage. Leaseholders review the evaluation, attend agent presentations, and make the final decision. The process is designed to make bias structurally difficult.
Can we see the evaluation criteria?
Yes. We publish the criteria we use to evaluate agents, and leaseholders have oversight at multiple stages of the tender process — from longlist to shortlist to final appointment. Transparency isn't a bolt-on; it's how the entire service is built.
Still Have Questions?
If anything about the payment model is unclear, we're happy to walk you through it. Get in touch — or book a free, no-obligation call to discuss your building's situation.
Get in TouchThis guide is for general information only and does not constitute legal advice. For advice specific to your lease and building, consult a solicitor specialising in leasehold property.