The Commonhold and Leasehold Reform Act 2002 provides a right for
leaseholders to force the transfer of the landlord's management
functions to a special company set up by them - the Right To Manage Company. The right was introduced, not just as a means of wresting
control from bad or absent landlords, but also to empower leaseholders, who
generally hold the majority of value in the property, to take
responsibility for the management of their block. This then allows
the leaseholders to choose the managing agent for their block.
The process is relatively simple and the landlord's
consent is not required nor is any order of court. There is no need for
the leaseholders to prove mismanagement by the landlord, in fact, the right is
available, whether the landlord's management has been good, bad, or
indifferent. The right to manage is only available to leaseholders of
flats, not of houses.
The right is exercised by the service of a particular legal notice on
the landlord. After a set period of time, the management transfers to
the right to manage company which has been set up for the purpose. Once
the right to manage has been acquired, the landlord is entitled to
membership of the company.
Abingdon Estates can help you gain control of your building and help you set up your RTM company. Once we have completed the process we will then help you establish preliminary budgets and planning for the good management of your building ensuring compliance with all the relevant legislation.
The criteria for you to exercise your Right To Manage:
The right to manage may only be exercised by a right to manage company.
The building must be self-contained and include at least two flats.
At least 50% of the flat-owners must want to go through the process.
At least 2/3rds of the flat-owners must have been granted original leases longer than 21 years.
No
more than 25% of the block may be used for non-residential use
excluding car parks and common areas connected with the flats.
Please contact us if you would like to discuss this further or visit our block management page for details about the excellent bespoke service we provide.
