The Right to Manage

The Right To Manage It’s your right!

The Commonhold and Leasehold Reform Act 2002 is legislation, of which provides an opportunity for the Leaseholders, to run their own affairs.  To make their own decisions about the management and upkeep of their Apartments, including the repairs and maintenance, insurance and service charges.

In order to achieve this the set up of The Right To Manage - 'RTM' company can be formed.  Freeholder or Landlords Consent

  • The Landlord’s Consent is not required

 

The Leaseholders should be able to secure the management via The Right to Manage (RTM).  There is no need to prove the following to implement the right:

  • Mismanagement by the Landlord
  • Mismanagement by the current Managing Agent

Lessees Benefits

The lessees with The Right to Manage (RTM) Company which they set up and own.

  • Have control and can save considerable amounts of money on services and repairs.
  • This could also upgrade the value and sale ability to their Apartment.

 

Where the Landlord has collected service charge payments in accordance to the Lease Terms and Conditions and has not yet spent them all.   Or is holding the remainder in a Client Account, The Landlord is under an obligation to refund all the unspent money including any Reserve Account or Sinking Fund.  Any money you have paid or is held by the Landlord are required to be refunded to you.

Management

Management functions are with respect to:

  • Repairs and Maintenance
  • Improvements
  • Insurance
  • Services

 

These would include the following:

  • Services such as internal and external cleaning, garden maintenance and lighting where appropriate.
  • Redecoration, services, repairs and maintenance to the structure of the building and common parts.
  • Insurance of the building and requirements.
  • Complying with Statutory and legislation requirements relating to the Management.
  • The day to day running and Management of the Estate Management or Development Block.

 

Collection of Service Charges, Budgeted Assessments and Audited Accounts

 

  • Some Lease provisions requiring consent of the Landlord:
  • Assigning the lease
  • Making Alterations to the Apartment
  • Sub-Letting

The power to issue the above approvals will be passed to the Right To Manage (RTM) Company.  The Right To Manage Company must give notice and keep the Landlord informed.

Notices

There are various Notices which possibly need to be prepared and completed, these notices can be in a prescribed form & served where strict time limits apply.  If these time limits are not adhered to then the application will automatically fail.

In addition to the above notices a specific Right To Manage (RTM )Company needs to be correctly formed and registered.  If this is also done incorrectly, this can also make the application be unsuccessful.  We provide a very thorough & substantial service to our Customers.

It is not uncommon for claims to fail & for leaseholders to be liable for costs, where the procedures laid out in the legislation have not been complied correctly. This is why it is most important you use a specialist like BNR Property Services.

To Qualify for The Right to Manage (RTM)

 

  • The building must be self-contained or if part of another building, be capable of being redeveloped independently
  • The building must include at least two Apartments;
  • At least two-thirds of the Apartments in the building must be let to 'qualifying tenant
  •  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 Apartments, nor any limit on the number of Apartments which can be owned by one person.
  • The Right to Manage RTM may only be exercised by a Right to Manage Company and the members of the Right to Manage 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 Apartments in the building although where there are only 2 Apartments in a building both must participate & be members of the Right to manage (RTM) Company.

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

If you are in any doubt about your rights or duties required, we advise you seek relevant advice.  Lessees exercising this right, by law will be responsible for the Landlords ‘reasonable’ costs in accordance of a claim notice given by the company in relation to the Estate Management or Block Development.

Please Contact Us with any questions or queries you may have in reference to the formation of a Right to Manage (RTM) Company or if you would like to proceed.