The Law Commission has unveiled a series of reforms. These are with the view to make it quicker and easier for leaseholders to take control of the day to day management of their flat block.
We at iInsure365 are privileged to have been able to contribute towards the consultation and the Law Commission document.
The Consultation has now been released on how the leaseholders will be able to change the Right To Manage. These proposals will make it easier for people to take the Right To Manage.
What does it cover?
The new proposals include extending the Right To Manage criteria to include leasehold house owners. It will also allow leaseholders to apply to manage multiple blocks and addresses the costs and paperwork of doing so.
Other questions raised in the proposal are as follows:-
1) What are the requirements for the Right To Manage and who can apply for the Right To Manage?
2) Do people have experience of failing the Right To Manage because of definitions of the Act?
3) Would it be helpful for lessees to have one person to have the right of management? Or should there be a reduction for qualifying tenants from at least two thirds of the flats to 50%?
4) Do you agree that there should be a removal of the exemptions for buildings that consist of a non-residential area of more than 25%?
5) Should Right To Manage Companies have to employ a managing agent where there are commercial properties involved?
6) Should there be an extension to the qualifying terms of Right To Manage and if so how?
7) Should the Right To Manage Company be able to obtain ownership of the building?
8) Should the Right To Manage companies by limited by guarantee?
There are various other questions on the Right To Manage and how lessees should govern and use them.
This is the most comprehensive review of the Right To Manage system that has taken place over the last few years. It will dramatically change and help lessees to be able to deal with the Right To Manage for their block of flats in a much easier way in future.
We are pleased to be able to confirm that we have contributed towards the Law Commissions paper on the Right To Manage. We believe it is absolutely critical for lessees to be able to have a much easier way to manage their own buildings and to reduce their costs. It is often so problematical for lessees and owners of flats as they do not understand the process. We are often asked to obtain quotes for lessees. In doing so lessees often find that they have been paying more than they should for their insurance premiums. This may be knowingly done by the freeholder/managing agent or the building may be over insured. This document will be able to bring restrictions that will help the Right To Manage company to control their expenses.
Consultations in relation to the above end on the 30th April. We believe that if you have any involvement in Right To Manage you should read the Law Commission paper. Not only that but also try to give consultation and any comments on it to help lessees in the future.