Tel: 01512279191     |     Email: andreworme@orme-associates.co.uk

Right To Manage (RTM) (Block of Flats)

Right To Manage (RTM) – The Basics

  • Tenants/Owners of flats can opt to take over the management of their block by following the statutory procedure in the Commonhold Act 2002.
  • To qualify (i) two-thirds of the leases in the block must have originally been granted for 21 years or more (which is commonly the case), (ii) 50% or more of tenants must join in the process (for blocks with just two flats, both must join the process), and (iii) no more than 25% of the block must be in non-residential use (ignoring common areas).
  • An RTM company is set up and prescribed notices are served on the landlord with a requirement for the landlord to reply within 28 days as to the validity of the notice, followed by a three month waiting period before which the management would pass to the tenants RTM company.
  • The process therefore takes about five months.
  • It is necessary to pay the landlords reasonable legal fees, these are limited however to certain aspects of the process.
  • We can represent you through the entire process of an RTM application, our usual fees are £100 per flat in most cases (minimum £595), and payable following the completion of the process.
  • (We can alternatively purchase the freehold to the block (see our page on Collective Enfranchisement)).

Why Exercise the Right to Manage Our Block?

  • A common impetus for exercising the Right to Manage is due to poor management and maintenance by the Landlord, or an absent Landlord, and/or where the service charges are considered high in comparison to the works being done, and/or the insurance cover or is excessive.
  • Any sinking fund and unspent service charges held by the Landlord are transferred to the management company. This may precede a wish to undertake certain works to the premises, such as painting and refurbishment of the common areas,

About Orme Associates

  • Orme Associates are a property services company and advise leaseholders of houses and flats on all aspects of leasehold reform. We have a proven track record and have completed numerous transactions by agreement and via determination at the Leasehold Property Tribunal.
  • We welcome new clients and offer free immediate leasehold advice and an estimate of the price payable.
  • Our factsheet is available via this link Fact Sheet – Right to Manage
  • Andrew Orme is the principal officer at Orme Associates and for advice on Leasehold Reform; Andrew’s profile is at available here via LinkedIn.

CONTACT ORME ASSOCIATES




Orme Associates Property Advisers is the trading name of Monument Square Ltd (Co Reg. No 09909965), registered office The Arts Village, 20 Henry Street, Liverpool, L1 5BS