The right to manage a block of flats will usually sit with the landlord. However, rights to manage applications can be made, and management functions transferred to a new ‘right to manage’ company (RTM) run by the leaseholders. This cannot be achieved automatically; there are certain conditions which must be satisfied prior to transfer.

Do we have to be dissatisfied with current management to make a rights to manage application?

No. An RTM company can be set up regardless of the existing management of the building. The reasoning behind the rights to manage applications process being made available to all tenants was initially to have a way to release property from bad management. But it is also a common sense step to empower those who actually hold the majority share in the value of a property.

Accurate legal advice is a must in these circumstances to ensure that the whole process goes smoothly. Simply.Law member lawyers have all the necessary skill and experience required to advise and assist in right to manage applications and can help to ensure a successful takeover.

What are the conditions for making rights to manage applications?

The conditions are varied, but they include; that the building must contain at least two flats, two thirds of the flats must have qualifying tenants ie, those who have more than 21 years left on their lease, and at least half of all leaseholders must be in agreement to making a right to manage application. There are further qualification credentials for properties which have a mix of residential and commercial use, so it always pays to do homework before making an application.

Once the criteria have been satisfied a formal claim notice can be served on the landlord.

Legal advice is recommended

Throughout this process there are certain procedures which must be followed. Seeking expert legal advice from Simply.Law member solicitors will help to ensure that you follow these to the letter and obtain the outcome you want.