right to manage
Right to Manage
The Commonhold and Leasehold Reform Act 2002 provides a right for leaseholders to acquire the landlord’s management functions by transfer to a company set up by them – the Right To Manage (RTM) company. The right was introduced, not just as a means of wresting control from bad landlords, or managing agents, but also to empower leaseholders, who generally hold the majority of value in the property, to take responsibility for the management of their block.
The right to manage is available to leaseholders of flats providing your block meets the qualifying criteria. Estates can assess your block and advise if the criteria is met.
We have years of experience helping leaseholders achieve their Right to Manage and we won’t stop until we have helped many more. Feel free to discuss any issues with one of our team and we’ll work them out for you
Leaseholders – take control!
For years the interests of the management fee paying leaseholder has long been forgotten, and the interests of the housebuilders themselves and subsequent freeholders has been the priority for the residential managing agent.
Generally, there is only one outcome of this for leaseholders: poor service levels and inflated service charges to line the pockets of those who only have a commercial interest in your residential development and your investment.
It’s a fact that nobody likes to pay a service charge; this is after all your hard-earned money, and you wouldn’t spend it frivolously, so why let your managing agent spend it that way for you?
It is time to take control and remove the conflict of interest between your managing agent and the other parties to your lease.
There are a few simple steps you can take to achieve this:
1. Become a Director
Explore the possibility of becoming a director of your RMC. Commonly nominee directors from the developer will stand as the directors of your management company. Not surprisingly they may be influenced by your agent not to hand over control to the leaseholders for several years, or even worse, the agent may appoint themselves as the director to avoid the residents gaining control.
2. Speak to other Managing Agents
The agent most likely has no authority to stand as a director and if this has happened on your development, then it is worthwhile speaking to a managing agent and asking them to investigate. Not all agents are in the fortunate position to have new developments handed to them, so other agents who genuinely have the leaseholders’ interests at heart will be motivated to get involved as there is a strong possibility they will succeed in becoming the new agent once you have a residential board of directors in place.
3. Aquire your Right to Manage
On the other hand, if becoming an RMC director is not an option, look into Right to Manage. The Commonhold and Leasehold Reform Act 2002 empowers leaseholders to remove the current agent from managing their block and replacing them.
If there is no RMC in your lease and therefore the freeholder of your block is making all the decisions regarding maintenance and management on your behalf, without any form of consultation, then you have the power to bring this to an end. Empower yourself and your fellow leaseholders and commence the Right to Manage process.