|The Setting Up Of A Right To Manage Company
|(The Commonhold and Leasehold Reform Act
It is possible to take away the management from the Landlord
or their Managing Agents by setting up a Company in which the
present Lessees would be involved. This is particularly useful
where the Lessees are constantly arguing about the service charge.
There are certain procedures that the Landlords and Agents must
follow before applying for service charge including a full disclosure
to the Lessees of how the amounts are calculated, producing
estimates and copies of any relevant agreements. If the Landlords
or Managing Agents do not follow this procedure we may be able
to assist with regard to disputing any such charges.
Many Lessees are unaware that subject to having the appropriate
majority and even though the Landlord or Managing Agents may
have run the management efficiently that they have the right
to apply for the right to manage company that would take over
the management of the block of flats. This would give control
of such future management to the Lessees who are members of
the RTM Company thus preventing many of the concerns over budgeting
for works that are required to the property. We can assist by
drafting and serving the appropriate Notices to set up the RTM
Company to control the management of the building and, if required,
introduce you to independent Managing Agents to act on behalf
of the RTM Company in the future.
In circumstances where the majority of Lessees wish to discuss
service charge problems, the setting up of an RTM Company or
the Enfranchisement or long Leases, a meeting could be arranged
at the property or at a convenient venue to facilitate moves
and to enable all parties to be present together to put forward
their points of view.
For more information and any queries you may have please feel
free to contact us on the details provided below or complete
our enquiry form and we
will get back to you as soon as possible.
Not all advisers consider the Right to Manage approach is the best course of action. If the Landlord is not carrying out his duties correctly, an application can be made to appoint a Manager in place of the Landlord. The difference in the Right to Manage is there can be no opposition to it provided the premises are within the act and the relevant number of Lessees wish to participate.
Some points to consider:-
- Do the majority of Lessees wish to participate?
- Do you wish to replace Landlords if they are doing the job properly?
- Are the Lessees prepared to take action against their neighbours, if service charge is not paid?
- Do you realise the enforcement of court orders by a RTM Company may not be as affective as action that can be taken
by the Landlord, for example the right to forfeiture under the Lease?
- Are you aware that any variations of covenants are still the responsibility of the Landlord?
- Are you aware the ground rent is still paid to Landlord?
- Did you realise the Landlord has still to be offered a place on the RTM Company Board?
- Is the Lease properly drafted to enable the charges to be collected efficiently or do the service charge clauses
need updating? (see no 5 above)