Right to Manage
If you are considering transfer and wish to appoint a new manager to provide the quality of service you expect (with you making the relevant decisions) Plymouth Block Management would be delighted to assist. We are experienced in the whole process and can seek to facilitate the smooth transition.
If you own a leasehold flat, it is your legal right to choose who manages your property.
Right to Manage gives leaseholders the opportunity to take over the management of their property — but with very real responsibilities.
WHAT IS RIGHT TO MANAGE?
The Right to Manage (RTM) was introduced through the Commonhold and Leasehold Reform Act 2002. It gives leaseholders the statutory right to take over the management of their property from the landlord by setting up a special company – a right to manage company.
RTM is an important right for leaseholders. They do not have to get the landlord’s permission, prove any mismanagement, or obtain any court order to exercise the right. But it does come with some very real responsibilities and it’s not a decision that should be taken lightly.
Although the process is relatively straight forward, the qualifying rules and criteria can be complex. Our team who are highly skilled in RTM are here to help you through the RTM process.
Acquiring the Right To Manage gives those leaseholders who participate the right to take over the management of the building.
The benefits of acquiring the Right To manage are:
The leaseholders acquire the right to set the service charge budget and manage the service charge and, if applicable, the reserve funds and maintaining suitable accounts of the same
The leaseholders acquire the right to appoint or dismiss the Managing Agent
The leaseholders acquire the right to appoint and dismiss contractors who provide services to the building such as builders and gardens
The leaseholders acquire the right to choose the building insurance policy through a suitable third-party insurance broker
Of course as the saying goes, ‘with great power comes great responsibility’ and as such acquiring the Right To Manage does place certain responsibilities on the leaseholders:
The leaseholders are responsible for the proper maintenance and upkeep of the building and associated grounds, if any
The leaseholders are responsible for ensuring the building is correctly and sufficiently insured and must provide a copy of the insurance policy to the freeholder
The leaseholders are responsible for ensuring all fire, health and safety requirements both under the lease and under the current legislation are met and enforced
The requirements for acquiring the Right To Manage are fairly simple and are defined in legislation under the Commonhold Leasehold Reform Act 2002 – they are:
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 number of qualifying tenants.The required minimum number of qualifying tenants must be equal to at least half the total number of flats in the building
In most cases, if the proper procedures are followed, then no. The freeholder may only object if the process followed by those leaseholders acquiring the Right To Manage is incorrect, or the RTM company does not comply withy the requirements under the legislation.
Where the landlord disputes the claim, the grounds for dispute are limited to:
the building does not qualify; or
the RTM company does not comply with the legislative requirements; or
the members of the RTM company do not represent half the flats in the building.
Any counter-notice must specify the reason for the alleged non-qualification by reference to the specific requirement of the Act and must state that:
the RTM company may apply to the First-tier Tribunal (Property Chamber) for a determination of the issue;
the RTM company will not acquire the right unless the Tribunal determines in favour of the company or the landlord subsequently agrees.
We have enormous experience with Right To Manage claims and offer a bespoke package to leaseholders wanting to acquire the Right To Manage which includes:
Formation of the RTM Company
Service of the Notice Inviting Participation on non-participating leaseholders
Service of the Claim Notice on the Freeholder, Management Company and any appointed managers or managing agents
Management of the transition period after a successful claim has been made.
Our RTM package has been successful on numerous buildings across Devon and Cornwall and we would be very happy to assist you with your RTM claim.
We offer a set fee for carrying the RTM process itself which includes a 12-month management contract for us to manage the building for the first 12 months after acquiring the Right To Manage which can be extended indefinitely – our goal is give you the control of your building and provide you with a top-tier management service for many years thereafter.
