Right To Manage

Right To Manage

The Lease Clinic are experts in acquiring the right to manage and in February 2014 were asked by the Leasehold Advisory Service to create a podcast advising on the subject. The podcast by James Compton can be found here.

The right to manage is a right given by Part 2, Chapter 1 of the Commonhold and Leasehold Reform Act 2002 to the majority of leaseholders acting through an RTM Company to take over the obligations and duties arising under their leases without having to prove fault on the part of the landlord provided their building qualifies and a prescribed procedure is followed. In short RTM in the majority of cases gives the leaseholders collective power over how their money is spent on the building which can be very appealing in circumstances where the leaseholders feel they are being over charged or in your example the landlord is simply failing to undertake repair and maintenance. Unlike a freehold purchase there is no premium payable to the landlord. All you have to pay is your costs and that of your landlords.

Our service includes:

1.       Checking whether the building is able to invoke the right to manage (i.e is structurally detached and has the requisite number of qualifying leaseholders);

2.        forming the RTM Company;

3.       Once the RTM Company is formed serve Notices of Invitation to Participate (NITP) on those who have not joined the Company;

4.       At least 14 days after service of the NITP serve the Claim Notice to Acquire the Right to Manage when you have at least 50% of the total leaseholders in the building as members of the RTM. The Claim Notice must specify a date being no less than one month from service by which the Landlord must serve a Counter Notice. It must also specify the date in which the RTM wishes to acquire the right to manage which must be no less than 3 months from the date in which the landlord must serve a Counter Notice by;

5.       Oversee the transfer of management functions.

You need 50% of the leaseholders to join the application. You should consider whether you wish to appoint professional managing agents (advised but not compulsory) and the date which you wish to take over the management (must roughly 5 months to have sufficient time to undertake the procedure and ideally fall on the next service charge accounting period date).

Costs

Our fixed fee for the above is £500 plus VAT per participating flat with no more than £25 per each flat for disbursements. Our fee does not include any litigation costs in the First Tier Tribunal or Upper Tribunal in the unlikely event that the landlord challenges the application on a technicality.

The RTM and its members will be liable for the landlord’s reasonable costs in dealing with the application. Such costs are difficult to predict (and often are not charged at all) but generally since the Right to Manage is meant to be a no fault based application with little cost Tribunals are normally critical of such costs if they are charged.

Recommended by

"Through their Lease Clinic, Comptons have simplified the lease renewal process. Their expertise in this field is reassuring to all those involved and most definitely minimises the anxiety and delays caused by having to extend these shortening leases"
KFH