An introduction to Right to Manage

A million flat leaseholders in the UK and the majority do not own the freehold and may have little control over the day-to-day management of the block. But now flat owners, such as tenants and leaseholders, have The Right To Manage (RTM) and to take overall responsibility for the management of their property. After all the purchase of a flat represents a large financial commitment and it is only right that the leaseholder owners have the right to manage their building and to control the way management charges are raised and collected and the way in which monies are spent. There have been circumstances where landlords did not act in a proper manner and where buildings fell into disrepair through no fault of the leaseholders.

The Commonhold and Leasehold Reform Act 2002 gave leaseholders this right of self-management if they incorporate a Right to Manage company. The leaseholders do not have to show that the landlords or the landlord’s managing agents have failed in their duty of care in managing the property. Relevant notices are served in strict accordance with time scales that are set out in the legislation.

To help you decide whether a Right To Manage company is suitable will depend on a number of factors. Unless the members of the RTM appoint a managing agent, then some or all of the leaseholders will need to administer the RTM on a daily basis.

These duties may include the collection of service charges and the payment of bills.

To decide whether or not a Right To Manage company is right for you, Brighton Company Formations have set out a summary of what we see are the advantages and disadvantages of managing your building through a RTM.

We are able to advise and assist you and remove any concerns you may have concerning Right To Manage. We can offer advice to help you decide on whether a RTM is right for you and a full service where we serve all the required notices, such as:

  • S78 Notice Inviting Participation on all qualifying leaseholders who are not members of the RTM company
  • S79 Notice Of Claim
  • S82 Right To Information Notice
  • S83 Right Of Access
  • S92 Contractor Notices and Contract Notices if served by the landlord
  • S93 Duty To Provide Information Notice

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