The Right to Manage Legislation - Calling all Leaseholders. Select the block management company of YOUR choice. Everything you need to know, set out in straightforward, jargon-free terms.
Leaseholders now have more power to control their asset than ever before. In recent years, new laws have given leaseholders in residential apartment blocks increasing levels of control in how their building is managed and run.
To sum up, Leaseholders have the Right to Manage Legislation including:
If you’re dissatisfied with the level of service from your managing agent you and your fellow leaseholders (see below for details) can choose your own managing agent. Or, set up your own agents to manage the block.
The Commonhold and Leasehold Reform Act 2002 and Leasehold and Freehold Reform Act 2024 gives leaseholders the right to pass the landlord’s managing functions to a Right to Manage Company, that is – a block management company or managing agent, such as Property Fusion.
How do I know if I qualify?
- The building needs to have at least 2 flats.
- At least half (50%) of the leaseholders need to agree to change.
- At least two thirds (approx. 66%) of the flats must be owned by long term leaseholders – leases of more than 21 years when first granted.
- The building qualifies if the non-residential (commercial) parts do not exceed 50% of the total floor area, excluding common parts. This is an increase from the previous 25% limit. This excludes car parks and common areas.
- It’s only the Right to Manage Company that can look after the building.
How does it Work?
- It’s very straightforward. Participating leaseholders set up an RTM using prescribed Articles of Association. Or, they can employ another block management company.
- An invitation to participate needs to be served on those leaseholders NOT taking part. Then, a Notice of Claim must be serviced on the freeholder, no later than 2 weeks afterwards.
- Once the RTM has been established, the landlord is entitled to membership of that company.
