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The Right To Manage legislation (RTM) gives YOU the legal right to take control and manage your development

Around 90 per cent of newbuild property sold in London is leasehold, and a growing number of UK leaseholders are taking action against their property’s managing agents over poor service.

Top grievances include, unreasonable contract terms, arranging unnecessary works or charging for services not delivered.

What you can do right away

 

Our advice

Firstly, do try and contact the freeholder with any concerns you may have. They may allow you to proceed with changing the managing agent and to gain more control of your development.

If the freeholder is opposed to a management change, you have the option of applying for the Right To Manage (RTM).

The procedure is straightforward…  subject to your development meeting the criteria* you could have control of your development within 3 months.

*Right to Manage Criteria – at a glance

A minimum of 50 per cent of the leaseholders must be in agreement with moving to RTM, followed by: 

  • Two thirds of the leaseholder flats must be for the original duration of more than 21 years. The owner does not have to be resident.  
  • The building must possess at least two flats, which must also be self-contained.
  • Any included commercial element, such as retail stores must not account for more than 25 per cent of the total floor area. 
  • Where a building is a converted property of four or fewer flats, neither the landlord nor their family must occupy any of the flats as a main residence.  
  • The local authority must not be the landlord of any leaseholder. 

Your Quick Guide to The Right To Manage Process

  • Confirm with leaseholders to ensure minimum 50 per cent participation.
  • Collect funds to start application.
  • Obtain and inspect all Land Registry Titles for all flats.
  • Identify and collect information for RTM company directors.
  • Form RTM Company.
  • All participants to sign an RTM company application.
  •  Formally invite the non-participants for the building (2-3 weeks).
  • Prepare and send RTM Claim form to freeholder.
  • Respond to any questions / challenges from Freeholder’s solicitor.
  • Receive landlord’s agreement with RTM after 1 month. No response is deemed a default agreement.

If the freeholder issues a Counter Notice refusing the RTM, you can…

Withdraw the RTM Claim – freeholder legal costs still payable

 – Apply for RTM to the Leasehold Valuation Tribunal (LVT)

The LVT will decide the appropriate method of application, either:

  • Correspondence documents – the most common method – using prepared case arguments and statements.
  • Attend in person – using prepared case arguments and statements, followed by attendance in person at a hearing to present your case.

– Wait 3 months as defined in the legislation.

– RTM company takes over management responsibility and can select a new managing agent.

To win the Right to Manage…

You do not have to prove that your current landlord or management agent has done anything wrong. You just need to follow a very specific process to take over the running of the building. 

The procedure can be lengthy and challenging, and if not followed correctly your landlord may prevent you from proceeding.

It is always recommended to obtain expert advice from block management professionals. 

Charlesons bring over 12 years experience in managing a wide range of large residential property developments and always works closely with its leaseholders.

Talk to us today for a free RTM assessment

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*Subject to initial discussion and on-site visit

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