Can Anyone Set Up A Right To Manage Company?

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Can I have an influence over the management of my block? This is a common question posed by many leaseholders in flats. The Commonhold and Leasehold Reform Act 2002 gives the right to take control of the management of a block of flats (owned by the freeholder) to the leaseholders collectively. The Act does however contain certain criteria and it is likely that you will require the help and assistance of a Right to Manage Solicitor.

You should not try to take this on without help from a specialist right to manage solicitor.

You might be wondering if you have to prove that your landlord manages your block badly or that he has breached his/her obligations? Do you pay your landlord compensation?

Proof that your landlord is handling the management of the block badly is not necessary; it may be that the management company or landlord is simply too expensive. Collectively you may believe that you would be more compentent in managing your block and would be able to save every tenant money.

To follow this process you will have to form a special Right to Manage Company (RTM Company) this company will then have the right to manage the block. Is it that simple? Not everyone can apply for the Right to Manage, specialist RTM solicitors will inform you of what criteria must be satisfied:

- no more than 1/4 of the flats must be used for non-residential purposes.

- the lease is not a business lease.

- the freeholder cannot be a charitable housing trust.

- at least 50% of tenants agree to acquiring the right to manage.

- the building must contain at least two flats held by qualifying tenants.

- the lease must be terminable upon death or marriage, it must have at least an unexpired term of 21 years.

- 2/3rds of the amount of flats in the building are leased by qualifying tenants.

And what about the cost? You will need to fund:

- reasonable legal costs of your landlord.

- legal costs of your right to manage solicitor.

- how much it costs to transfer the freehold.

- the cost of setting up a RTM Company.

If you think that a right to manage company is for you, seek the advice of a right to manage lawyer and get started.

About the Author:
Tim Bishop is senior partner at Bonallack & Bishop, a firm of solicitors who deal with right to manage company cases. If you need advice on
right to manage leasehold
property, contact them today. Tim is responsible for all major decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 13 years and has plans for its continued development.



Article Originally Published On: http://www.articlesnatch.com


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