Right to manage is only available to leaseholders of flats not houses. It is there to empower leaseholders to take hold of the majority of their property and take responsibility for the management of their block.
While the process is simple a landlords consent is not required nor is a court order. There is no need to prove any form of mismanagement. The right is available whether the landlord’s management has been good, bad or indifferent.
The right is often exercised by way of a formal notice but we will lay this out for you in detail below
The right of the leaseholders of a building that contains flats to take over the management from the freeholder and/or managing agent via having a Right to Manage company.
The right to manage company does not have to keep on the freeholders existing contractors i.e. the managing agents they can use their own agents or manage the building themselves. We discussed this in detail in another article but you should consider what you want to do even before proceeding with the right to manage. It is important that you are prepared as four months can go very quickly.
All the above does sound complicated. But the reality of the situation is if you use a solicitor then they should be able to help you go through the process very easily. It allows you to ensure that you are then responsible for collecting and managing the service charge of the property. Keeping the update of the communal areas and the structure of the building and dealing with any complaints. One of the main reasons that leaseholders often take over the right to manage the property is due to the ever increasing costs by the landlord and/or managing agent. You should look into what areas you could reduce such as insurance. We have often found that we have been able to reduce large amounts of premiums for leaseholders especially where landlords and managing agents include commission.
It is important that you are aware that preparation in relation to taking over is much more important than the actual process of it. It would be wise to work out why you are taking over the building and what is the purpose. Who is going to manage the property on your behalf and how is it going to benefit you long term.
To qualify for the right to manage your block must be structurally detached. You would need to consider not just the parts above ground but also aspects of it such as an underground car park or gym facilities that might be shared with other buildings.
It is important as part of the building can be deemed to be self-contained if it is a vertical division i.e. from the earth to the sky the building is detached from its neighbour.
a) Could the block be redeveloped independently of the rest of the building
b) Are the services i.e. gas, electricity, water independently provided
c) Can the services be changed or interrupted without affecting the rest of the building?
Some landlords have been able to successfully challenge right to manage applications on the basis that too many pipes would need to be rearranged to meet the tests above. If you are unsure on whether the block is specifically self-contained we would suggest you speak to a solicitor for expert advice.
a) The building is not a purpose built block
b) The block has four or fewer flats
c) The landlord (or an adult member of his family) have lived in one of the flats for the last year
Leaseholders applying for right to manage will be liable for the costs incurred by the landlord as well as your own legal costs in the event that you do not get this correct. This makes it critical that you do your diligence to ensure that the block qualifies for the RTM before you incur any significant costs and we would suggest you speak to your solicitor.
Don’t be frightened of talking to a solicitor about the right to manage or any other Company that deals in this specialist area. You will often find that people will be able to help you and it is not as daunting as it seems. Don’t hesitate to contact us for your insurance quote to see how much you could reduce your overall premium on a yearly basis that may even pay for the transfer! We recently did a case where the leaseholder saved in excess of £9,000.00 on their premium! This paid for their costs to do the work.
We are pleased to announce that the companies’ house have now arranged an interactive learning tool for flat management companies.
Click on the link here and this will help you in respect of any queries you may have, it is a fantastic tool to use.
The government have decided to add another layer of problems for landlords in respect of…
What is the renters reform bill and when will it be introduced? The renters reform…
Covid Update – 10th November 2020 – Government clarifies the position on possession cases We…
New proposals for updating of EPCs? You may not be aware but since the 1st…
Coronavirus The Guide for landlords to reduce the risk of health dangers to their tenants?…
It is always important when considering whether you wish to become a buy to let…