Right to Manage Act - RTM


Gain Control of your blocks expenditure

The Right 2 Manage Act

Right to Manage (RTM) is the legal right for leaseholders to take over the management responsibility of their property from the freeholder. The right was created by the Commonhold and leasehold reform act 2002.

There are a number of simple steps you need to go through to set up an RTM company and we can take care of it for you.  

Setting up an RTM Company

Essentially, you need at least 50% of the flat owners within your block to participate. For example, in a block of 12 flats, 6 of those would be required to proceed. The matter can proceed whether the other 6 want it to go ahead or not.

If you own a flat in a block but do not live in it, for example, you may rent it out or it is your holiday home, you are still able to be part of the process.

You do not need to have owned your property for any specific period of time. Therefore, you can buy a flat one day and become part of the RTM process the following day.

Benefits

Once the statutory process is complete, you will have:

-    Control over your appointed managing agent
-    A say in when and how your money is spent on the maintenance of your building
-    A say in any other expenditure that may be required for your building

Procedure

-    A Limited Company is formed to undertake the responsibilities of the Lessor
-    At least 2 Lessees will need to become Directors of the new R2M company
-    Any individual Leaseholders not members need to be invited to join
-    Serve notice on the Freeholder
-    Take over the management of your building and appoint your new Managing Agent

Changing Services

If you live in a block of flats, and are unhappy with the service and cost, the Commonhold and Leasehold Reform Act 2002 enables you to get rid of your existing property managers without having to prove incompetence.

There are three conditions: 50% of the flat owners must want to do this, 75% of the building must be residential and at least two-thirds of the flat owners must have long leases.

Cost

We can help you through this process quickly and cheaply: we charge £100 per flat plus VAT for administering the process for the RTM Company. For larger buildings we may quote a lower rate, but there is a minimum fee of £1000 plus VAT.

Duration

From the date of incorporation of the RTM Company, the process takes 6-7 months, providing you can get at least half of the flat owners to sign up within two weeks of incorporation. If they have signed up before you decide to incorporate, then it takes just over 20 weeks from incorporation.

However, there is no guarantee that it will be all plain sailing, and some Landlords look for reasons to delay or frustrate the process. Our experience is that generally most Landlords are resigned to the new rights of lessees, and we helped to form one of the first RTM Companies in the country.

Appoint Right 2 Manage as your Property Managing Agents and have your say in how your block is controlled. Right 2 Manage can help you every step of the way.

What do you do when you have taken control?

You can appoint Right 2 Manage as your Property Managing Agents and have your say in how your block is controlled.

Contact Us


Right 2 Manage Dorset Ltd
Company Number 7134334
10 Albany Business Park
Cabot Lane, Poole, Dorset, BH17 7 BX
Tel: 01202 640336
Email: enquiries@right2manageltd.co.uk