RIGHT TO MANAGE

'The Right To Manage'
It’s your right – Don't throw it away

The Commonhold and Leasehold Reform Act 2002 is legislation which provides an opportunity for the flat owners, to run their own affairs and to make own decisions about the management and upkeep of their flats, including the insurance, repairs, service charges etc. by means of The Right To Ma

'RTM'.

The landlord's consent is not required & even where Landlords may be absent the Leaseholders should be able to secure the management via RTM. There is no need to prove mismanagement by the landlord or the current managing agent to implement the right. Basically it means that the lessees (via what is known as an RTM Company we would set up on their behalf) have control & in a number of cases will no doubt save considerable sums on repairs, maintenance, management fees, insurance premiums etc, & possibly enhance the saleability & value of their property. 

Where there are multiple blocks within the development a separate RTM Company would be formed & Notices served separately in respect of each block as this is the requirement of the legislation

Where the landlord has collected service charges in advance but not yet spent them all and is hold remainder in a trust account, he is under an obligation to hand over all the unspent sums including any reserve account or sinking fund, so any monies that you have are held by the Landlord are required to be returned to you. 'Management functions' are 'functions with respect to services, repairs, maintenance, improvements, ins and management'. These would usually include;

• repairs, redecorations and maintenance of the structure of the building and the common parts

• services such as lighting, cleaning, gardening etc. where appropriate

• insuring the building

• collection of service charges, accounting etc

• complying with statutory requirements relating to the management

• the day-to-day running & management of the block

Most leases contain provisions requiring the consent of the landlord to which can include sub-letting, assigning the lease and making alterations to the flat. Such approvals passes to the RTM company, although the company must keep the landlord informed and give notice to the landlord

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How we can help

We have had direct experience in property management, leasehold property etc. for over 20 years & have many experiences of Landlords levying high service demands, carrying out either unnecessary or simply inappropriate repairs which were estimated at exorbitant costs & levied service charge demands for thousands of pounds. We believe that the formation of an RTM Company forcing the management to be taken away from the Landlord would, in these circumstances, save sig sums of money & possibly also increase the saleability of your properties.  Likewise, it may well be that your Landlord / management company simply are not 'maintaining the building’ & therefore the lessees having control will mean that things get done when they should & in a manner determined by them. Where the landlord has collected service charges in advance but not yet spent them all and is holding the remainder in a trust account, he is under an obligation to hand over all the uncommitted sums in any reserve account or sinking fund, so any monies that you have paid & are held by the Landlord are required to be returned to the RTM Company. Even for those blocks that may have the management rights, an RTM Company also allows for the insurance of the building to be taken away from the Landlord. There could be significant benefits to such insurance being placed in the ‘open market’ rather than at the choice of the Landlord who may not fully have the interests of the Lessees at heart. However, as with the majority of legislation for the inexperienced it can be a complex task & procedures must be followed exactly as laid down, otherwise the management will secured. There are various Notices which may need to be prepared / completed (some being in a prescribed form) & served upon which strict time limits apply. If the limits are not followed then the application will automatically fail. In addition a specific RTM Company needs to be correctly formed. If done incorrectly this could result in the application being unsuccessful with costs still payable to the Landlord regardless of success or not. 

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Qualification Requirements

• The building must be self-contained (or if part of another building, be capable of being redeveloped independently); and must include at least two f

• At least two-thirds of the flats in the building must be let to 'qualifying tenants'*;

• The building can be part-commercial but the non-residential part must not exceed 25% of the total floor area.

• *A 'qualifying tenant' is a leaseholder whose lease was originally granted for an original term of more than 21 years.

• There is no requirement for any past or present residence in the flats, nor any limit on the number of flats which can be owned by one person.

• The right to manage may only be exercised by a right to manage company and the members of the RTM company must comprise a sufficient nu qualifying tenants.

• The required minimum number of qualifying tenants must be equal to at least half the total number of flats in the building although where there are flats in a building both must participate & be members of the RTM Company

N.B. - The Right To Manage cannot be exercised where a local housing authority is the immediate landlord of any of the qualifying tenants of flats contained in the premises

Our Charges & Services

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Our fees are fixed and calculated on a ‘per flat’ basis, based on the total number of flats in the building & all are subject to VAT at the prevailing rate.  Al charges are specified in writing to you and are fixed. We do not charge an hourly rate for this service so leaseholders know exactly where they stand regarding our fees from the very outset.

We would request from the Lessees the basic information needed for us to prepare the necessary paperwork. In addition to preparation we will also serve the various Notices required. We will deal with the formation of the RTM Company which includes completing the forms for you.  Upon instructions, we will send you a form to pro us with the basic information required.  This website is not meant to describe or give a full interpretation of the law, nor does it cover every case. If you are in any do about your rights and duties then seek specific advice. Lessees exercising this right, by law will be responsible for the Landlords ‘reasonable’ costs in consequence of claim notice given by the company in relation to the premises.

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Please ensure you carefully read our Terms & Conditions to which this website & all our services are subject