Right to Manage

Right to Manage

If leaseholders of residential property are not happy with the management of their block of flats then it is open to them to form a ‘Right to Manage Company’ and make an application to the Leasehold Valuation Tribunal for the appointment of such Right to Manage Company (“RTM”). Careful consideration must be given to this and suitable legal advice obtained.

Some initial points to be considered:-

  • The right to manage is only available to leaseholders of flats and not houses
  • What do you want to achieve by taking over the management?
  • The right to manage will not mean self-management – managing agents will still be required in most cases
  • The service charge will still need to be set at a realistic level
  • Who will act as the officers of the RTM (e.g. Directors, Company Secretary)?
Right to Manage Requirements

The right to manage is not available to all, certain requirements must be met to qualify, including:

  • The building must be self-contained
  • It must contain at least two flats
  • At least two thirds of the flats must be let to ‘qualifying tenants’ (i.e. their lease was originally granted for more than 21 years)
  • The right can only be exercised by an RTM and the members of such company must comprise a sufficient number of qualifying tenants (i.e. equal to at least half the total number of flats in the building)
The procedure (which can only be exercised by the RTM and not individual leaseholders) is laid down by statute and includes:
  • Once the RTM is registered as a company with its original members it must invite all other leaseholders in the block to join
  • The RTM can, upon notice, obtain management information from the Landlord
  • A suitable service charge budget will need to be prepared by the RTM (ideally with the help of a managing agent)

Some points to note:

  • The RTM is required to reimburse the costs incurred by the Landlord in the right to manage process
  • The Landlord is entitled to become a member of the RTM
  • Once it takes over the management the RTM has full responsibility for management functions and responsibilities
  • If the building contains non-residential or commercial units the management of these parts will remain the responsibility of the Landlord
  • The Landlord will still be responsible for performing the Landlord’s covenants contained in the leases (excluding management)
  • Monies due to the Landlord prior to the takeover remain payable to the Landlord
  • The RTM has a statutory duty to ensure that all leaseholders observe their lease covenants and to take action if they do not. Any breaches not remedied must be reported to the Landlord 

Please call us if you would like more information, or complete an Enquiry Form.

Blog Posts

Unfair dismissal and permanent health insurance (PHI)

22/05/2019

Permanent health insurance (PHI) provides employees with pay during long term sickness or incapacity.…

Read More
Upcoming Events

Managing the workforce in 2019

03/04/2019

If you employ staff or have responsibility for HR, Gotelee Solicitor’s annual employment law…

Read More
News Posts

Employers must record all working time

16/05/2019

If you attended Gotelee’s Employment Law Update at Trinity Park last month you may…

Read More

Testimonials

"I have used Tracey Laflin at Gotelee on a number of occasions and in my opinion, she is simply the most efficient conveyancing solicitor I have ever worked with. From the outset, she took the time to understand my specific business requirements and to date, she has exceeded all of my expectations."

- Dale Fiddy - Portobello Developments Ltd

"Approachable, very efficient, always willing to take my calls and update me."

- SH

"“ This is the second time we have used Tracey for the conveyancing to buy our new home. She is always completely approachable, she has helped us along the way with advice and useful tips that has helped lessen the stress. We have complete confidence in her and would not hesitate to recommend her to our friends and family”.  - Peter Dawes, Cater Dawes Financial Planning "

-

"We found Rachel Dawson outstanding, polite, professional and caring."

-

"I would like to say thank you for your help, support and guidance over the last two and a half years. Obviously should I need further assistance in the future I shall not hesitate to call you guys."

-

"We were very pleased to have Jade as our solicitor, the service was excellent and we felt kept in the loop which minimised stress"

- CT

"I don't think this house sale would have pulled together without Jo's determination and expertise. Excellent!"

- MT

"Jade made the process of buying our first home quick, easy and took the stress out of a new chapter of our lives"

-

"The ease that we could access and speak to Pat Smith - Thank you"

-

"Prompt, helpful, polite and very professional service"

-

Please select preferred method of contact

* We will only contact you by telephone if you select this as primary form of contact. All web enquiries will be stored on our website for 30 days.