Right to Manage Procedure and Time Scales

There are time critical actions that must be undertaken in order for the Right to Manage company to take over the management of the building.

Actions and Timescales

Action   Leaseholder Action Landlord Action
Contact the other leaseholders informing them of your intention to acquire the right to manage and Obtain the support of at least 50% of the qualifying leaseholders  
Once the necessary 50% support has been obtained contact Brighton Company Formations and Incorporate RTM company  
Issue Section 78 notice of participation on flat owners and The flat owners have 14 days to reply; at least 50% of qualifying owners must accept  
Issue, if necessary, Section 82 right to information requesting information from landlord in order to take over the management     Landlord has 28 days to provide the information
Once 14 days has elapsed after the issue of S 78 notice and more than 50% acceptance issue S 79 claim notice on the landlord   S 79 notice to landlord specifies determination date - min 28 days after issuing S 79; and acquisition date min 4 months after issuing S 79 S 84 counter notice sent by landlord by determination date. If landlord does not complete S 84 then RTM company automatically takes over the management from acquisition date
Landlord could dispute the validity of the claim to Right to Manage   The RTM company has 60 days to apply to leasehold valuation tribunal (LVT). If LVT agrees with RTM company the date of acquisition is three months from the date of the tribunal’s judgement.  
S 83 right of access notice is optional and informs landlord that you wish to inspect the property.     Right of access must be at least 10 days after S 83 right of access notice landlord might also request access under S 83
Following the date of acquisition the following occurs      
S 92 notice served on landlord     Landlord notifies all contractors to the property that the RTM has acquired the building and notifies the RTM of all existing contracts as soon as possible after the date of acquisition is set
S 93 duty to provide information is served on the landlord     S 93 asks for management information relation to the property
Information must be given within 28 days after the notice is issued
Notice cannot be issued before the date of acquisition
S 94 notice served on landlord     S 94 requires that as soon as possible after the date of acquisition the nett balance of any service charges is sent to the RTM. Proper outstanding costs can be deducted before the transfer.

Summary

  1. OBTAIN 50% SUPPORT FROM LEASEHOLDERS
  2. INCORPORATE RTM
  3. S 78 INVITE OTHER LEASEHOLDERS TO JOIN
  4. S 82 REQUEST INFORMATION FROM LANDLORD
  5. S 79 NOTIFY LANDLORD OF CLAIM BY RTM
  6. S 83 NOTIFY LANDLORD RE ACCESS TO BUILDING
  7. S 92 LANDLORD NOTIFIES CONTRACTORS
  8. S 93 REQUEST INFORMATION TO MANAGE BUILDING

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Latest News

Great Service

Just wanted to say thank you for doing a splendid job in setting up the Right To Manage company and issuing the notices. Now we feel we are in control of what goes on with the block.

Posted: Thu 16-Jun-2011 12:55PM

Right To Manage

The right to manage (RTM) is available to leaseholders of flats and does not apply to houses. To qualify the building must meet the following criteria and there is a requirement to have a minimum number of leaseholders; -at least two thirds of the flats must be let to ‘qualifying tenants’ i.e. held on leases which were originally granted for more than 21 years. -any commercial area does not exceed 25% of the total floor area -RTM does not apply to premises that are classed within Residential Landlord Exemption i.e. the premises cannot be purpose built, be no more than 4 flats and one of the flats must be occupied by the freeholder or an adult member of their family as their only or principal home for the last 12 months

Posted: Tue 08-Feb-2011 4:04PM

Right To Manage Company Formation

As the right to manage is exercised by the right to manage company and not the individual leaseholders it is necessary to incorporate a right to manage company. The articles are prescribed by legislation and are based on the Companies Act 2006 model articles for companies limited by guarantee. Right to manage companies incorporated after 9th November 2009 will have articles that comply with current legislation. Right to manage companies incorporated before 8th November 2009 will have the ‘old style memorandum and artilcles’ and there is therefore a transition period until 30th September 2010 at which point the Companies Act 2009 artilces will aply to all right to manage companies regardless. If you require any help in incorporating a right to manage company please call Brighton Company Formations Limited on 01273 831891

Posted: Mon 19-Jul-2010 4:24PM

Why use a Right To Manage?

The Commonhold and leasehold Reform Act 2002 provides a right for leaseholders to change the appointment of the management of their building to another provider, by incorporating a right to manage company to take over from the freeholder those rights of appointment for managing the building. Some of the reasons to use a right to manage company is to reduce service charges and to gain control of who manages the block of flats. Right To manage Company can help you with the right to manage process so please call us on 01273 831891

Posted: Fri 02-Jul-2010 11:02AM

Control your service charges

If you live in a block of flats or a house converted into flats you can take control of your service charges by forming a right to manage company. Three conditions must be met: at least half of th eflat owners must consent, at least three quartres of the building must be residential and at least two thirds of the flats must have long leases. Please feel free to contact Right To Manage Companies on 01273 831891.

Posted: Fri 02-Jul-2010 10:45AM

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