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October
2003 saw the introduction of one of the most important
and controversial reforms in Landlord & Tenant
legislation to date: the tenants’ Right to
Manage.
We can advise you on the
Right to Manage process from start to finish and have
carried out this process now for many disgruntled
lessees and are now successfully managing their blocks.
The
Commonhold and Leasehold Reform Act 2002 provides a
right for leaseholders to force the transfer of the
landlord's management functions to a special company set
up by them - the right to manage company. The right was
introduced, not just as a means of wresting control from
bad landlords, but also to empower leaseholders, who
generally hold the majority of value in the property, to
take responsibility for the management of their block.
The right to manage is available to
leaseholders of flats, not of houses.
The process is relatively simple. The
landlord's consent is not required, nor is any order of
court. There is no need for the leaseholders to prove
mismanagement by the landlord. The right is available,
whether the landlord's management has been good, bad or
indifferent.
The right is exercised by the service
of a formal notice on the landlord. After a set period
of time (normally 3 months), the management transfers to
the right to manage company (the RTM company) which has
been set up by the leaseholders. Once the right to
manage has been acquired, the landlord is also entitled
to membership of the company.
However, there are important issues
to consider and a substantial amount of work to be done
before service of the notice, if the takeover of
management is to be successful.
Wherever possible, Right
to Manage Companies are advised to appoint agents who
are properly qualified and accredited, perhaps by the
Royal Institution of Chartered Surveyors [RICS] or the
Association of Residential Managing Agents [ARMA]. Their
members are bound by strict codes of conduct in the
maintenance of trust accounts and professional indemnity
insurance.
This is very welcome
legislation for those tenants who have yearned to rid
themselves of an abusive landlord or incompetent
managing agent. However, not all landlords are bad and
some of the better ones may be sorely missed. If so, it
is worthwhile asking tame landlords whether they would
consider appointing your own choice of agent and leave
the Right to Manage option as a last resort.
As Stock Page Stock is
fully compliant with the RICS Code of Practice and has
experience with the Right to Manage Legislation please
contact us and see how we can help you in this matter. |
