0203 102 7311     dgrey@actionforleaseholders.co.uk
The Setting Up Of A Right To Manage Company
Service Charge Disputes
Buy The Freehold
Extend Your Lease With No Ground Rent
The Setting Up Of A Right To Manage Company
(The Commonhold and Leasehold Reform Act 2002)

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:-
  1. Do the majority of Lessees wish to participate?
  2. Do you wish to replace Landlords if they are doing the job properly?
  3. Are the Lessees prepared to take action against their neighbours, if service charge is not paid?
  4. 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?
  5. Are you aware that any variations of covenants are still the responsibility of the Landlord?
  6. Are you aware the ground rent is still paid to Landlord?
  7. Did you realise the Landlord has still to be offered a place on the RTM Company Board?
  8. 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)
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