Information on the right for the leaseholders of a building containing flats to take over management of the building, via an RTM company.
How do you qualify?
It’s simple! To qualify for RTM all you need to ensure is that:
- your building contains at least 2 flats,
- at least two-thirds of the flats in the building are owned by long leaseholders (leases of more than 21 years when first granted),
- If you have non-residential parts of your building like shops, these must not make up more than 25% of the whole floor area of the building.
If you can tick all three of these qualifying points, then you’re part way to enjoying the freedom RTM offers you and your fellow leaseholders.
What’s next?
Once you’ve confirmed that your building qualifies then you need to ensure at least half the leaseholders in the building to take part. This can often be challenging because many flat owners don’t live at the property and so you have to track them down… This is where a little tenacity and motivation will come in really handy. But don’t give up because the rewards are far greater than the effort you put in at this stage.
Moving Forward
If you’ve got the support you need from your fellow leaseholders this is great news and means you can seriously move forward with your RTM journey. Success is in sight!
You’ll now need to set up a special RTM company which has a particular company structure. At this point you may want to talk to an RTM expert like Adam Church Ltd. They can set up an RTM company for you and provide advice about how to successfully complete the next stages.
The Notices
To accomplish your RTM you need to serve a number of prescribed notices. This means following a strict procedure and completing forms accurately, ensuring they’re filled in correctly and serving them to all the right people.
- A notice inviting participation must be served on all leaseholders who are not members, or who have not agreed to become members
- A Notice of claim for RTM must be the served on the freeholder.
These are technical notices in which you’ll also need to observe some strict timescales of service, but don’t panic because help is out there. The Leasehold Advisory Service recommends you use an RTM expert, such as Adam Church Ltd to do this part, so that the whole process runs as smoothly as possible.
Acquiring the Right to Manage
As long as there is no objection from your Freeholder then you should be able to successfully take over the management of your building four months from serving the notice of claim. If your freeholder does raise a concern then they have to do it quickly and there aren’t many grounds they can rely on to stop your claim. Again, an RTM expert can help you if your freeholder counters your notice.
When you know the right is yours then it’s time to start planning for how you’re going to manage your building. You can either interview local agents for a fully managed service or perhaps self-management is right for you.
If you want to look after some of the management yourself, some block management specialists like Adam Church Ltd provide bespoke financial services like budgeting, invoicing, credit control and company accounts, which you’ll need to do every year to be compliant.
Enjoy your freedom…
The goal is to make the most of your new-found freedom, to exercise your ability to choose the kind of management you want for your building, to find value in the services your building receives and live a happier leasehold life.
All of these things can be achieved when you take the right to manage.
Visit a directory to find a property managing agent that can help you through the Right to Manage process.
