The Commonhold and Leasehold Reform Act 2002 gives lessees the ability to obtain Right To Manage Services(RTM) and take control of the management of their property.
Although clearly defined the process to achieve Right To Manage has to be followed correctly to achieve a successful result. Many leaseholders prefer to delegate the management of the process to an experienced company like Alba Management Services.
The process for obtaining Right To Manage involves the following steps:
- Formation of a Right To Manage Company (see note 1 below).
- RTM Company serves s.78 Notices Inviting Participation of Non-Members.
- Once 50% or greater membership is achieved, after fourteen days RTM Company serves s.79 Notice of Claim on Landlord.
- Landlord may serve s.84 Counter Notice within one month. Grounds for Counter Notices should be limited to procedure not being followed correctly, building or members not qualifying. (see note 2 below)
- If no Counter Notice is received, Right To Manage is determined after one month (Determination Date).
- Following the Determination Date, the Landlord must serve s.92 Contractor and Contract Notices to advise about the pending RTM.
- Leaseholders make their arrangements for future management of the property (appoint an agent or self manage).
- Three month’s after the Determination Date the RTM Company acquires Right To Manage (Acquisition Date). Landlord or current Manager hands over control & funds to the RTM Company (or their newly appointed Agent).
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Note 1: A questionnaire will be provided to the client before commencement of the procedure. The information provided by the client will be relied upon to carry out the application for Right To Manage. It is important to note the RTM Company will be liable to pay the reasonable legal costs of the freeholder.
Note 2: If the Landlord serves Counter Notice denying Right To Manage Services the RTM company can make an application to the First Tier Lands Tribunal for determination within two months of the counter notice. Additional costs will apply if the RTM Company requires assistance or representation