Right to Manage (RTM) allows leasehold tenants to remove the company which manages their block and replace them with a a property management agency of their own choosing.
If you live in a block of flats and do not have a say in who runs that block then you can benefit from the Right to Manage process. The right is available to all flat owners, in all blocks, where they fulfil the following criteria:
The lessees are not required to prove their current landlord is failing in their duties, or that their current agent is managing the building poorly. The lessees are not required to pay any compensation to the landlord for taking control of the management of the building. All leaseholders in the property are entitled to be part of the RTM company and have equal rights and voting powers.
From the date of incorporation of the RTM Company, the process takes approximately five months, providing you can get at least half of the flat owners to sign up within two weeks of incorporation. Once they sign up it then takes takes just over 19 weeks from incorporation.
Although there is no guarantee that this will be plain sailing, there is high demand for the formation of RTM Companies and we can help to assist with this process.
If the details above interest you, we need to talk. This will enable us to outline the services we can offer in supporting you through this process and also running the RTM company on your behalf.
If, however, you have been sent this information by your appointed committee you should advise them directly of your support for this. You may be invited to a meeting where this is formally proposed and your indication of support officially documented. After this, you really do nothing. We handle the process in conjunction with a specialist local solicitor who will form the company and carry out the legal obligations for you.
Once the company has acquired the right, you will immediately have a direct say in how the development is managed.
If you go through the process, you are liable to pay the reasonable legal costs of the freeholder. These, in our experience, are claimed in most cases so you need to ensure you are prepared for the possibility of additional costs. This is a charge levied by the freeholder’s solicitors and we would have no control over this. If they do levy a charge and you consider it too high then you can apply to the Leasehold Valuation Tribunal for them to determine this. We can do this for you but only if you are successful in the RTM claim and we are appointed as managers for your block.
If a counter notice is received then an application must be made to the First-tier Tribunal (Property Chamber). There is no alternative to this, even though it is highly likely that the freeholder will have no valid reason for the counter notice. Cornerstone will make no charge for applying to the First-Tier Tribunal in most cases.