Right to Manage
For further information on extending your lease or buying your freehold, please contact us on 0208 462 6332 or complete our form below.
As well as a Lease Extension and Freehold Purchase service, Regency Leasehold also provide a comprehensive Right to Manage service. For further information, please see below...
What is the Right to Manage?
Introduced through the Commonhold and Leasehold Reform Act 2002, ARMA defines the Right to Manage (RTM) as an entity that gives leaseholders the statutory right to acquire the landlord's (or freeholder's) management of the building/development by setting up a special company - a Right to Manage company.
The right was introduced, not just as a means of wrestling 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.
Why Should You Form a Right to Manage?
Through our bespoke and professional service, Regency Leasehold will assume full control and responsibility of the RTM procedure to ensure it is an effortless process for our clients.
However, managing the Right to Manage company is a commitment that requires reasonable consideration as the qualifying rules and criteria that must be adhered to can be complex. Responsibilities to be aware of when considering RTM include:
Collecting service charges.
Controlling service charge expenditure.
Maintenance of the communal areas.
Maintenance of the building structure.
Dealing with complaints about the building.
RTM does not necessarily mean self-management. The RTM company can decide to carry out day to day management itself, or it could delegate this function to a managing agent. The managing agents will be instructed by the RTM company, so decisions on such things as major works could still be taken by the RTM company if they wish. For information on our sister management company, Regency Estate Management, visit www.regencyem.co.uk.
What criteria do I have to meet to qualify for the Right to Manage?
To qualify for an RTM you do not have to get the landlord's permission, prove any mismanagement, or obtain any court order to exercise the right. The right is available, whether the landlord’s management has been good, bad or indifferent. Before an RTM can be served however, the building must meet certain conditions and a minimum number of leaseholders are required to take part.
In addition, it should be noted that the Right to Manage relates to each individual building. Therefore, in an estate of separate blocks, each block would need to qualify separately and an individual RTM notice served. In an instance whereby the estate of flats was managed by the same freeholder, it would be sensible to obtain the Right to Manage for the whole estate; but this would have to be accomplished by an application in respect of each separate block.
The RTM Process
The RTM process can only begin once a series of notices including the Notice Inviting Participation and the Notice of Claim has been served appropriately on all qualifying leaseholders and the landlord.
Once leaseholders have obtained consent to acquire the Right to Manage, they have approximately three months by which to prepare for handover ahead of the acquisition date.
Following this, the management of the development is transferred to the Right to Manage company which has been set up by the leaseholders. Finally, once the right to manage has been acquired, the landlord is also entitled to membership of the company.
How much will it cost to obtain the Right to Manage?
Unlike the Lease Extension and Freehold Purchase, no premium is payable during the Right to Manage process. Subsequently, all the costs involved will be professional fees.
As with all our services, we promise from the outset that our fees for managing the Right to Manage process are all fixed and not subject to change. Regency Leasehold will provide you with a comprehensive breakdown of all the known costs right at the start of the process so you know what you're paying for.
For more information on the potential opportunities that pursuing the Right to Manage can bring, you can apply for a copy of our FREE Right to Manage Guide by completing please contact form at the bottom of the page or on our Contact Us page. Alternatively, you can email us directly at email@example.com and we'll send a PDF version of our Guide straight to your mailbox.