Whether you are a leaseholder looking at the way your block is currently managed or actively seeking to apply for the Right To Manage, we hope our list of FAQs is useful.
How many Leaseholders must be in agreement to take over the management of the block?
A minimum of 50 per cent with each property eligible for one vote only.
Who completes the RTM application / documentation?
There are THREE options: 1. Do it yourself. 2. Hire a solicitor. 3. Use a specialist property service provider.
How can Charlesons help with the RTM process at the outset?
Our flexible approach provides a fully scalable service to coordinating your application. Key services can include, (i) Contacting all leaseholders to take part in an RTM application, many of whom may not be resident at the block (ii) Collecting all necessary documentation and signatures (iii) Organising and hosting residents meetings to update RTM process, (iv) Negotiating terms of RTM takeover directly with the freeholders.
Is there a fee for helping with coordinating the application?
Subject to individual block requirement, a covering fee may be applied. Charlesons is pleased to help and look forward to continuing our relationship as your appointed block managing agent once the application is complete.
Will there really be a reduction in running costs under new block management?
Following a detailed building assessment, an estimated budget will be supplied at an early stage to all leaseholders, which will include contractor maintenance costs. Under RTM, running costs can see a reduction of around 25 per cent.
When is payment required for the RTM process?
Payment is only made after the RTM process has successfully completed. There are no up-front fees.
How long does it take for a RTM application to go through?
Once the required number of leaseholders have agreed to participate, the application can then be made to the Freeholder, and is usually completed within 3 months.
Who will be directors of the new RTM Company?
Charlesons recommends that at least three directors who express an interest in taking a more active role should be selected from RTM company leaseholders residing in the block. All leaseholders participating in the RTM Company will become members and are eligible to vote on major block decisions at annual general meetings. Those leaseholders not involved in the RTM company will not become members and therefore, have no say in decisions affecting management of the block.
What qualifies Charlesons to be better than the current managing agent?
Transparency and communication are core to our established property management approach. Budgets are always based upon using local independent contractors and our management agreement allows leaseholders to leave at any time.
What if the freeholder objects to the RTM application?
If the building qualifies and 50 per cent of its leaseholders are in agreement, the freeholder may object but is unable to prevent an RTM application from proceeding.
Can tenants who rent their properties in the block participate in the RTM?
No, only leaseholders are eligible to apply.
If a leasehold property is held in joint names, are both able to vote?
Unfortunately not, there is only one vote per property.
Can leaseholders who live overseas still be eligible to vote?
Yes. Our management systems are able to contact owners who live abroad.
Can an RTM company take over more than one building on an estate?
Currently, the scheme provides only for one company per building and application.
What are the common obstacles to taking over the management in a block?
Leaseholders have a statutory right under the Commonhold Reform Act (2002) to apply for RTM. The key two obstacles are failing to obtain agreement from 50 per cent of the leaseholders, and where more than 25 per cent of the property is used as commercial space.
Can leaseholders take over the management of an estate using RTM?
Not at present. Formation of a RTM company enables participants to oppose from a stronger position as well as possessing an agent acting on leaseholders' behalf.