Right to Manage

BNS buildings
BNS buildings
BNS buildings
BNS buildings

INTRODUCTION

Did you know; it is your right to manage your development, the way you want it managed?

When the Government introduced the Commonhold and Leasehold Reform Act 2002 it provided leaseholders with a right to take control of the management of their building. This process is known as the 'Right to Manage' (RTM) and is open to all owners of private leasehold flats subject to a few perfectly reasonable criteria.

There are in excess of one and a half million flat leaseholders in the UK. The majority of leaseholders do not own their freehold and have little control over the management of their building. Unwarranted loading of leaseholder service charges is a widespread and common problem. There are other legal processes available to provide redress for unreasonable charging but these are time consuming and few go to the leasehold valuation tribunal to seek redress.

Unsurprisingly most leaseholders of private residential flats are interested in having a direct say in how their building is managed, in reducing their service charges and in making the managing agent accountable to them.

At BNS Management Services, we take care of the administration of, and establish the RTM for you by engaging the services of competitively priced specialist local solicitors and applying our knowledge, skills and experience to the process. Once you have acquired your RTM we have a range of supporting services tailored to your development.

 

CONDITIONS & QUALIFYING CRITERIA

There are only three conditions:

  • at least half of the flat owners must agree to do this
  • at least 75% of the building must be residential
  • and at least two-thirds of the flat owners must have long leases

The lessees are not required to prove their current landlord is failing in their duties, or that their current agent is managing the building poorly. The lessees are not required to pay any compensation to the landlord for taking control of the management of the building. All leaseholders in the property are entitled to be part of the RTM company and have equal rights and voting powers.

Advantages of RTM

  • RTM allows leaseholders to gain control of the management of their block from ineffective landlords without requiring any consents or court orders
  • Allows the replacement of under-performing managers
  • Helps maintain standards and ensures competitive pricing and continued value for money
  • Gives the lessees full control over the decision-making process relating to the running of the development
  • Decision making, such as the placement of the Buildings Insurance, engagement of contractors and level of service charge will now be firmly in the lessees control

 

HOW LONG WILL THIS TAKE?

From the date of incorporation of the RTM Company, the process takes approximately five months, providing you can get at least half of the flat owners to sign up within two weeks of incorporation. If they have signed up before you decide to incorporate, then it takes just over 19 weeks from incorporation.

However, there is no guarantee that it will be all plain sailing, although our experience is that, generally, most Landlords are resigned to the new rights of lessees, and we are experiencing high demand for the formation of RTM Companies.

 

WHAT DO YOU DO NOW?

If the details above interest you, we need to talk. This will enable us to outline the services we can offer in supporting you through this process and additionally running the RTM company on your behalf.

If, however, you have been sent this information by your appointed committee you should advise them directly of your support for this.  You may be invited to a meeting where this is formally proposed and your indication of support formally documented. After this, you really do nothing. We handle the process in conjunction with a specialist local Solicitor who will form the company and carry out the legal obligations for you.

Once the company has acquired the right , you will immediately have a direct say in how the development is managed.

 

WHY BNS?

BNS is the leading Block Management Specialist in the Bristol region.  Managing buildings from small, independently owned, sub-divided homes to large scale mixed use developments.

We are members of the recognised trade body ARMA - The Association of Residential Managing Agents; which underlines our commitment to fair trading and ethical working relationships with both client and contractor alike. Furthermore, we are a Local Authority Approved Contractor, which highlights our dependable service endorsed by stringent vetting procedures.

BNS operates a 24 hour service for added peace of mind, meaning we are always available to deal with your requirements and for more serious issues our out of hour’s team will attend the development to assist you where necessary.

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