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The Right to Manage

Window in Trewinnard Hall - residents have statutory rights Changing Managing Agent
The Commonhold and Leasehold Reform Act 2002, which came into effect in 2003, included provisions for the Right to Manage. The Right to Manage allowed leaseholders to take control of their building, regardless of whether or not there is fault with either the Freeholder or Management Company.

To explain more fully, the Right to Manage is for Apartment holders considering running their block. This would allow for more input into communal expenditures, such as insurance, cleaning and works. We liaise directly with the Directors in order to ensure that the Property is managed the way the residents wish.

There are certain requirements in order for residents to exercise their statutory rights in this regard.

  • The premises consist of a self-contained building, or part of a building
  • ‘Part of a building’ is self-contained if it has vertical division, could be redeveloped independently and has, or could have, its own services
  • Your building must include at least two flats
  • At least two thirds of tenants (flat owners) must ‘qualify’
  • To ‘qualify’, the original lease must be for more than 21 years
  • There is no limit to the number of flats owned by one person
  • Any commercial / non-residential content must be no more than 25% of the total floor area
  • No past or present residence is needed.
The process is relatively simple; the landlord's consent is not required nor is any order of court. There is no need for the leaseholders to prove mismanagement by the landlord. The right is available, whether the landlord's management has been good, bad or indifferent. The right to manage is only available to leaseholders of flats, not of houses.

There Are No Residence Qualifications
Once the company is set up all lessees who are not members of the company must be invited to participate. Some weeks after the invitation a claim notice is served on the freeholder giving them at least a month to accept or contest the claim If contested there would be a tribunal reference, in this case the RTM (Right To Manage) company is liable for the freeholders reasonable costs. Provided that all formalities have been complied with properly, the procedure should not be complex.

Contact Acaria Management & Consultancy
if you have any questions regarding The Right To Manage process.

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