Problems With Your Freeholder or Managing Agents

Flat owners come to us for advice on various different issues with regards the upkeep or general management of their building; this might be a lack of repair that is impacting on their home or unreasonable service charges offering poor value to those that live in the building.

Usually, there are underlying issues, meaning that simply tackling each new issue as it arises might not be the best solution.

A longer term view of taking over management by way of a Right to Manage Company (RTM Company) or by buying the freehold through collective enfranchisement, might initially be more involved and expensive, but can resolve these issues in the long term.

Right to Manage

This is a no-fault based procedure, available to lessees to take over the management functions of the freeholder without having to incur the costs of buying the freehold. The freeholder will retain their ownership, but the lessees forming the RTM Company will make the day to day decisions such as what works need to be carried out and by whom. It is common for a RTM company to enlist a managing agent of its choice, but not essential.

Of course there are prerequisites for the building to qualify and number of tenants that must join in, upon which professional advice should be taken. If the process is followed correctly, the freeholder cannot refuse this right, although they can recover any reasonable costs they may incur in which are not usually significant.

The RTM Company should carefully consider how it manages the building and deals with approvals under the leases, such as applications for alterations or subletting, to ensure it complies with its obligations under the leases. However with the right set up and support, flat owners can take control of their block.

In most cases flat owners find that the process pays for itself once the lessees have been able to ‘shop around’ for insurance and maintenance contracts. In part 2 of this series we will look at collective enfranchisement as a long term solution to leasehold problems.

If you have any questions, would like a formal costs estimate or wish to set up a meeting with us then please contact:

Ricky Coleman - Solicitor at Dean Wilson LLP

01273 249251  rfc@deanwilson.co.uk