3 April 2013 by

The Right to Manage: what do you acquire?

If you are a flat owner and unhappy with the management of your building then you may wish to consider exercising the right to manage. The right to manage enables you to assume greater control of certain management aspects of your building. It provides a viable (and less costly) alternative to purchasing the freehold of your property although when considering acquiring the right to manage you may also wish to consider acquiring the freehold.

No premium is payable in acquiring the right to manage and no fault on the part of the freeholder or current manager needs be shown.

A Right to Manage Company (‘RTM Company’), made up of the flat owners, will, upon exercising the right to manage, acquire management responsibility from the landlord and/or management company.

On the date that the right to manage claim is completed certain duties under the lease pass from the freeholder/management company to the RTM Company. These include:-

  • Management, including:
    • Services
    • Repairs
    • Maintenance
    • Improvements
    • Insurance
    • Service charges
  • Grant of approvals:
    • Transfers
    • Sublettings
    • Charges
    • Alterations and improvements
  • The enforcement of tenant covenants in the lease (except as below)

There are certain obligations which do not transfer to the RTM Company such as:-

  • obligations to any parts of the property consisting of a flat or unit not held under a lease by a qualifying tenant (such as a commercial unit), and
  • any provisions relating to re-entry or forfeiture

The RTM Company does not acquire all of the responsibilities of the landlord of the property and whilst the RTM Company will assume various management duties it will not step into the shoes of the freeholder entirely.

The advantage, however, is that any current management company or managing agent can be removed from the equation and flat owners will have greater control over the way in which the above management aspects are dealt with.

For further information on exercising the right to manage or acquiring the freehold interest of your building please contact Darren Coleran on 020 7288 4775 or William Bethune on 020 7288 4743 or email williambethune@boltburdon.co.uk .

22 March 2013 by

Don’t take a chance on chancel!

Part of the conveyancing process is carrying out a “chancel” search to determine whether the property you are intending to purchase carries a potential obligation to contribute towards the repair of the chancel in a local parish church.

28 March 2013 by Yezdan Izzet

Service Charges Consultation

In a decision which most commentators consider is beneficial to landlords, the Supreme Court has delivered an important judgment on the requirements for consulting on service charges.

Signup To Our Weekly e-News

"*" indicates required fields

We’ll never share your details with any third party in line with our privacy policy.