Exercise your Right to Manage - you can rely on us to guide you through the process

Right to Manage (“RTM”)

If you are a Leaseholder or a Managing Agent this process may be of interest to you so what is it?

Right to Manage (RTM) was created in 2002 and is the legal right for Leaseholders to take over the management responsibility of their property from the Freeholder.

It can be used to  resolve issues arising from the cost or manner in which a Property is being managed & of moving forward in a way that makes disputes a thing of the past.

If you are a Leaseholder in a development where you own a Property you may not be satisfied with how your Managing Agent is performing nor be convinced that the Insurance arranged for the Block represents the best value that could be achieved.

Mike Kirkham can advise you on all aspects of the process from a straightforward RTM Application to one which is defended or where the Freeholder simply acts in an obstructive manner to delay the process.

How is it done?

Get the Leaseholders to support it

To set up a Right to Manage company a number of simple criteria have to be met.

  • more than 50% of the Leaseholders must be in favour
  • two thirds or more of the Leaseholders must have Leases on their property that were originally for 21 years or longer
  • not more than 25% of the floor area must be used for commercial (as opposed to residential) purposes

The first thing to do is to sound out other Leaseholders and, if you believe there is sufficient support, arrange a meeting of all the Leaseholders. Try and  get letters of support.

Set up the RTM Company

The process of setting up an RTM company is exactly the same as setting up any other limited company and is something we can assist you with.

Guidance can be found at www.companieshouse.gov.uk

Mike is worth contacting about this step in the process because RTM Companies are different from other Companies and your Application for Right to Manage will not succeed if your company does not fulfil all the criteria for a Right to Manage Company.

Appointing Directors & the Company Secretary

The Directors of a RTM company have legal responsibilities that can have financial consequences for them so before you set the Company up get advice from Mike on what these are.

You should also bear in mind that the Directors of the RTM company will need to be elected by the Leaseholders.

The Company Secretary has specific responsibilities in terms of submitting audited accounts to Companies House each year. The Company Secretary can be a Leaseholder but is often a representative of the Property Management company appointed by the RTM to manage the Property.

Invite Leaseholders who are not members of the Company to join

The Directors must invite all Leaseholders who are not members of the RTM company to join it.

Serve Notice on the Freehold Owner

This is the critical step in the Right to Manage process. It is important that it is done correctly because if an element is missed, the Right to Manage request could be refused on a technicality. The Notice of Claim must be in writing and must:

  • specify exactly which Block is applying;
  • provide a statement to show the RTM company has the support of the required number of Leaseholders with the correct Leases;
  • state the full names and address of each member who is both a qualifying Tenant of the building and a member of the RTM company;
  • provide details of the above individuals;
  • state the name, company number and Registered Office of the RTM company
  • state a date, not earlier than one month after date of service of the Notice of Claim, by which each person who was given the notice may respond
  • specify a date, at least three months after the date for the counter- notice, on which the RTM company intends to acquire the right to manage the premises

Mike’s experience could be invaluable here & his specialist advice is worth having!

Now – take over the management of your Block!