Right to Manage
Introduced through the Commonhold and Leasehold Reform Act 2002, ARMA defines the Right to Manage (RTM) as an entity which gives leaseholders the statutory right to take over the management of their property from the landlord by setting up a special company - a Right to Manage company.
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 which 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.
Qualification for RTM
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. 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.
Find out more about the conditions that must be met by downloading our free guide which can be found by clicking this link.
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.
For a full extensive look at the RTM process, or if you require any further information, please download a free copy of our RTM guide by clicking here. Alternatively, if you wish to inquire about the possibility of serving an RTM, please contact us on 0845 838 5172 or email us at email@example.com to discuss how to proceed.
For further information on extending your lease or buying your freehold, please contact us on 0845 838 5172 or complete our form below.
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