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The Right to Manage

The majority of tenants are unaware of their right to take over the management of their building from their landlord without paying any premium. 

The “right to manage” is a useful tool in the event that you, like many others are experiencing poor management of their building or paying high services charges and management fees and receiving little or no benefit.    By exercising your right to take over the management of you building you will take control and ensure that your services charges are reasonable and you benefit from the money which you are spending.

To acquire the right to manage you do not have to prove poor management by the Landlord, there are very little grounds for your Landlord to resist the claim. The process is relatively simple. The Landlord’s consent is not required. No court order is necessary. Bad management does not need to be proved. A capital payment is not payable to the Landlord.  

The Qualifying Criteria

In essence the qualifying criteria is:-

  • The building must be self-contained (or if part of another building be capable of being re-developed independently);
  • The building must include at least two flats;
  • At least two thirds of the flats must be let to qualifying flat owners (meaning a flat owner who has a Lease originally granted for more than 21 years – the normal scenario being that you hold your flat on a 99 year Lease);
  • Flat owners do not need to live in their flats to qualify;
  • The building can contain commercial parts i.e. shops, but they must not exceed 25% of the total internal floor area of the building;
  • Owners of at least half of the total number of flats in the building (not half the number of participating Flat owners holding flats) must be members of the RTM Company.

 

For comprehensive guidance on the right to manage please see our Right to Manage Guide and Flowchart of the procedure to the left of this page.

The main disadvantage of exercising the right to manage as an alternative to freehold enfranchisement (where you acquire the freehold) is that each flat owners lease continues to become shorter and will need to be extended at some point (at capital cost to that flat owner). Also ground rent continues to be payable.

Please contact Joanna Botley or Jade Wilson for an initial no obligation discussion regarding the right to manage or collective enfranchisement options available to you and your building.