With the introduction of the Commonhold and Leasehold Reform Act 2002 leaseholders have been afforded a significant opportunity to act collectively to improve the management standards of their development. Under this Act, each lessee has the right to run their own affairs and make their own decisions about the management and upkeep of their development by means of acquiring the Right to Manage (RTM). This is accomplished by setting up a Right to Manage Company of which qualifying leaseholders can become members.
What are the Criteria?
There are a number of criteria that must be met before the RTM procedure can be progressed:
- At least 50% of the qualifying leaseholders within the development must sign-up for the process and become members of the RTM Company
- At least two thirds of the leaseholders within the development must have long leases (a long lease being defined as having a term greater than 21 years at the time of issue).
- No more than 25% of the block may be used for non-residential use (excludes car parks and common areas connected with the flats).
In general if your development meets the above requirements then there is a high probability that you can successfully undertake the RTM process. We would be happy to advise you in further detail on the above requirements.
What are the Benefits?
Successful completion of the process empowers leaseholders with the ability to fully control the running of their development, including how and where service charge funds are spent. This means that as lessees you will collectively, via your RTM company, have control of your affairs and in most instances be able to save considerable sums on repairs, maintenance, management fees, insurance premiums and other such service charge items. You decide what management strategy to employ. This may also help to improve the marketability and value of your property along with living conditions within the development. This would be accomplished by agreeing service standards with us as your chosen firm of managing agents.
Why Choose Us?
We have the essential experience necessary in forming and progressing the RTM procedure on behalf of leaseholders, having assisted a large number in successfully following this through. We are fully aware of all relevant aspects of legislation and are able to guide and advise leaseholders through all phases of the RTM process and more, including:
- Establishing an action plan and bringing leaseholders together prior to the formal process
- Incorporating the RTM Company to allow the procedure to commence, including acting as Company Secretary or Director where necessary, and compliance with Company Law.
- Serving the required Notice of Invitation to Participate on all qualifying leaseholders
- Issuing the Claim Notice upon the Landlord and other relevant parties
- Dealing with any queries or Counter Notices served by the Landlord or other relevant parties.
- Assisting the RTM Company in forming the necessary service charge budgets and plans for the development
- Ensuring all necessary items are in place for formal commencement of management by the RTM Company
- Liaising with the Landlord following completion of the RTM process in ensuring compliance with statutory obligations.
Once the RTM process has been completed, we will continue to work with the RTM Company post completion to efficiently and successfully manage the development on behalf of its leaseholders, including arranging and attending Annual General Meetings and other such requirements.
If you wish to significantly improve your current management service, please do not hesitate to contact us and we will be happy to meet with you to discuss a suitable management strategy.