Let’s assume you are a leaseholder of a flat in a shared building. There is a freeholder who is in control of managing the building which you pay into a fund for. This freeholder may or may not own a flat in this building and may or may not live there (it’s less common now that they do). You have been discussing with other leaseholders about how you have a vested interest in the building but absolutely no say about what happens to it and the money which you pay towards it (service charges). The freeholder may possibly be very difficult, making frequent requests for money, poor repairs and cyclical maintenance, lack of communication, or, they may be wonderful but you just want more input.

You have options. Relieved?!

The most popular option is that you, along with other leaseholders can gain control of the management of the building without the freeholders agreement by setting up a Right to Manage company under the legislation of the Commonhold and Leasehold Reform Act 2002. It would require a minimum of 50% of the flats to agree and become a part of the company. It would require directors to head up the company and be the ‘decision makers’ on behalf of the other leaseholders. The articles of the company generally (which would need to be drawn up) require 1 or 2 directors as a minimum. You can then instruct your own managing agent, agree your own budget for service charges and set up a schedule of works that you agree to (which must also tie in with the lease for reasonability and frequency) Let it also be known that having control of your building can potentially also increase the value of your home as it is quite attractive to a prospective buyer..

It is important to note that with this ‘take over’ comes some considerable responsibility. You will be in charge of repairs, maintenance, major works, service of notices, accounts, service charge budgets, demand distribution and collection, arrears, legal disputes, building and directors insurance cover, meetings, criticism, fire risk, health and safety and so on.

Do not despair though, as this is what managing agents do (mostly with a smile!) It is a lot of work and a lot of responsibility. Finding a knowledgeable, trustworthy and reliable agent will relieve most or all (depending on how much you want to be involved) of this work from your shoulders.

There are exemptions to who can apply for RTM status. One is if there are any flats where the landlord of a ‘qualifying tenant’ is a housing authority.

Should there be multiple blocks as part of the estate, each block would have to meet these requirements separately.

If this hasn’t put you off..we would be happy to arrange this for you so you can move forwards with a more functional building that you are able to be part of and have a say in!