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Right to Manage | RTM http://www.canonburymanagement.co.uk/Web/Right-To-Manage.aspx
Why claim your Right to Manage?
If you live in a block of flats and do not have a say in who runs that block then you can benefit from the Right to Manage process. The right is available to all flat owners, in all blocks, where they fulfil the following criteria:
1. At least 50% of the flat owners within the physical block of flats must want to go through the process.
2. At least two thirds of the flat owners within the physical block must have long leases ( more than 21 years at the time of issue).
3. No more than 25% of the block may be used for non-residential use (excludes car parks and common areas connected with the flats).
If your block fulfils these criteria then it is highly likely you will be able to go through the Right To Manage process with 100% success. There are a small number of technical legalities that can prevent some being eligible so you should discuss with our sales team beforehand whether to progress your claim as one claim or several for your complex.
If you find that you are not eligible for the process, we may be able to help by offering to assess the issue you have for a fixed fee and then in come cases, it may be possible to make an application to the Leasehold Valuation Tribunal - please contact our Sales Team (Contact.aspx) for further information.
Other Costs & Information
There are a few other things that you must know before proceeding with the Right to Manage process:
The freeholder’s reasonable legal costs
If you go through the process, you are liable to pay the reasonable legal costs of the freeholder. These, in our experience are claimed in most cases so you need to ensure you are prepared for the possibility of additional costs. This is, however, a charge levied by the freeholder’s solicitors and so we would have no control over this. If they do levy a charge and you consider it too high then you can apply to the Leasehold Valuation Tribunal for them to determine this. We can do this for you but only if you are successful in the Right to Manage claim and we are appointed as managers for your block.
Leasehold Valuation Tribunal
If a counter notice is received then an application must be made to the Leasehold Valuation Tribunal. There is no alternative to this, even though it is highly likely that the freeholder will have no valid reason for the counter notice. Canonbury charges £1500 including VAT for the preparation of the application and attendance to the hearing. It is always advisable to attend the application to argue the case otherwise all details may not be fully considered by the panel. As we have all the information to hand, applications are likely to be cheaper and more accurate than those prepared by a solicitor. The application should be made immediately as there are time limits, so we would advise that you decide promptly. In the rare event that your claim may not be successful at the tribunal, you would be liable to pay the reasonable legal costs of the freeholder in attending the hearing. We would estimate that these are likely to be around £1500 + VAT but in some cases they could be higher.
Further Information
Canonbury Management has a wealth of knowledge and experience in this field and much of this information is on our website. We constantly review the data on the site following reviews of case law, however, if you can’t find the answers you are looking for, please give us a call on 0207 1188 400 or email us at sales@canonburymanagement.co.uk (mailto:sales@canonburymanagement.co.uk) and one of our experienced staff members will get back to you.
Frequently asked questions about Right To Manage How long does the Right to Manage process take?
The Right To Manage process takes 5 months from payment of the invoice to you receiving your final letter from us. If the freeholder contests the claim then it may take a further 3¬–4 months for the LVT application to be concluded.
Do we need a solicitor for this process?
The simple answer to this is NO and we would advise against using them for this process. We are a specialist legal service provider and will have more experience in this field than a firm of solicitors as we conduct around 85% of all RTM claims at the time of writing. We have done more RTM Claims than any other company and have a 98% success rate for this process. Our applications to the Leasehold Valuation Tribunal (LVT), in the event of a counter notice having been provided by the freeholder, are prepared by qualified barristers, and our experienced staff will attend the hearing to ensure that your claim has the best prospect of success.
Do I have to pay the reasonable legal costs of the freeholder and what might they be?
Yes, the law requires that you pay the reasonable legal costs of the freeholder and we would say that costs should be around £600 + £25 per flat up to a cap of £3000. If costs are higher than this formula then you may want to consider making an application to the LVT to have the reasonableness of the costs assessed.
What are the legal responsibilities of the RTM Company and its directors?
The directors of the RTM Company have the normal responsibilities of any limited company, however, they also are responsible for the maintenance of the building as the freeholder would have been before. They effectively replace the freeholder with regard to insurance and maintenance. We would always advise you outsource this role to a managing agent, as they will have the necessary systems, expertise and insurance cover to assist in the collection of revenues, and insurance and maintenance arrangements.
Should we continue to pay service charges during the RTM process?
We recommend that the service charges continue to be paid to the incumbent agent during the RTM process to ensure continuity of services.
What annual returns do we have to file for the company?
Our advice would be to appoint a managing agent who can take care of these matters for you and would allow you to make the company dormant and thereby reduce accounting costs. If you decide to manage the building yourself, you will need to file annual accounts and an annual return and you would be responsible for the maintenance of the statutory register of members and filing of HMRC tax returns for the bare trust.
What happens after we have filled in our online questionnaire with Canonbury?
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