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 (min £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 and a selection of case studies can be viewed at this link Case Studies
- Andrew Orme is the principal officer at Orme Associates and for advice on Leasehold Reform; Andrew’s resume is available here and his LinkedIn profile is at available here via LinkedIn.
Our Terms and Conditions are available by clicking here