Is the Right to Manage the right option?

Since its introduction under the Commonhold and Leasehold Reform Act 2002, leaseholders can exercise this right, as long as they meet certain qualifying criteria and follow the correct process.

The internet is awash with information on the subject and it is often the right choice. But it is important to be aware that it isn’t a leaseholder’s only option and might not be the answer you seek.

Points to consider
Before embarking on a Right to Manage, consider what you want to achieve and what will it look like when it’s finished. Once you have a clear grasp of the situation, professionals can provide advice that is more relevant and meaningful.

Other options
By acquiring the Right to Manage, an RTM takes over the landlord’s functions under the lease and becomes responsible for the repair, maintenance and provision of services and the enforcement of covenants and grant of approvals/consents. The landlord still retains limited functions, however, so the RTM isn’t in complete control.

If it is autonomy you want, then collective enfranchisement might be an option for you to consider. Leaseholders can buy the freehold for a fair market price, subject to meeting certain criteria, giving you each an equal share. The downside is the cost.

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You might simply want something done about the poor management of your block. An application can be made to the First Tier Tribunal Property Chamber for the appointment of a manager who takes over the landlord’s functions and is answerable to the tribunal. This can be a good option if the level of responsibility detailed above is not for you.

It might be that you want some involvement, but not to the level of an RTM. Perhaps you should consider forming a recognised tenants’ association (RTA). It is entitled to certain information and can be consulted on the appointment of a management agent.

Leaseholders also have a range of options available through the County Court or First Tier Tribunal, for example, to challenge the reasonableness and payability of service charges, and these should be explored with a specialist solicitor.

Is RTM the one?
RTM can be a great way for leaseholders to gain control of their building, but the option that is best for you depends on your situation and what you are trying to achieve.

Right to Manage is still developing and there are conditions and technicalities that need to be negotiated. And don’t forget the financial consequences.

You should always seek the best advice. Finding a practitioner who understands this complex area of the law will help you make the right choice.