You may have only heard of right to manage (or RTM) from reading a recent report in the newspaper. Perhaps it stirred up in you the annoyance you currently feel about the management of your block. Your landlord charges an exorbitant fee and you do not think you get much value back in return for this. As it happens, several of the ten in your block feel the same. Is RTM a feasible solution?
The formation of right to manage companies, when handled correctly by a specialist solicitor, has helped to lift hundreds of tenants out of this scenario. Leaseholders living in a block of flats can enjoy many benefits from following the RTM process, for example saving financially in service and management charges. Sometimes these annual savings have added up to huge amounts.
With an exercise of the right to manage the tenants have the collective right to take over the management of their block of flats. This is a legal provision as set out in the Commonhold and Lease Reform Act 2002. A right to mange solitor will explain the process in detail but you can also get together with the other landlords in the block and check your situation out beforehand. Obviously there are qualifications which you must satisfy in order to fulfill the criteria of the legal right to manage. For example:
– at a minimum 1/2 the qualifying tenants who live in the block must be in agreement with the RTM process.
– at a minimum 2 / 3rds of the tenants who live in the block should be the owner of a lease which was granted for 21 years or more originally.
– a maximum of of of the building is used for non-residential purposes. This does exclude any common areas which have a connection to the block or car parks.
If you are unhappy with the management of services of your block, the chances are most of your fellow tenants are probably too. It is a good idea to talk to them or discuss things during a meeting. You could find that actually you satisfied the criteria, you have taken good advice from a specialist lawyer and the process is completely swiftly and reliably pain free.
Choose a specialist right to manage solicitor who has particular experience in the formation of right to manage companies, as it is not an area to attempt to undertake without legal support; there are certain legal issues which can prevent the RTM process from continuing.