Leaseholders Right To Take on the Management of their Property
The Commonhold and Leasehold Reform Act 2002 gives a majority of Lessees the right to take over the management of their block of flats. (There are various exceptions where there is a resident landlord etc).
Essentially it allows Lessees to take over their management using a special form of company (a Right to Manage Company – RTM) with a prescribed form of Memorandum and Articles of Association. The RTM Company has the Lessees as its principal shareholders, but the landlord is also able to own a share. The company has a Board of Directors who are elected by the Members/Shareholders of the Company.
The RTM Company is responsible for carrying out all the landlord’s obligations under the terms of the respective leases and is also liable to notify the Landlord of any breach of lease terms.
We will be able to assist Lessees by advising on RTM and exploring the advantages and disadvantages in relation thereto, forming the RTM Company and serving the various Notices on all of the Lessees and the Landlord. We can liaise with the Landlord on the handover of management and the transfer to the RTM Company of any funds held to the credit of the Service Charge Fund.
If you are unhappy with your present management, contact us and we can discuss whether RTM is likely to be suitable for you.