What is the Right to Manage?
The Commonhold and Leasehold Reform Act 2002 provided the right for owners of long leases to manage their building themselves rather than through the Landlord and/or his agents.
This allows Leaseholders to decide such issues as insurance, repairs, service charges etc.
The Legislation requires certain conditions to be satisfied in order for the right to arise; namely:
- The building must include at least two flats;
- The building must be self-contained (or if part of another building, be capable of being redeveloped independently);
- At least two-thirds of the flats in the building must be let to 'qualifying tenants;
- A 'qualifying tenant' is a leaseholder whose lease was originally granted for an original term of more than 21 years. There is no requirement for any past or present residence in the flats, nor any limit on the number of flats which can be owned by one person.
- The building can be part-commercial but the non-residential part must not exceed 25% of the total floor area.
- The right to manage may only be exercised by a right to manage company and the members of the company must comprise a sufficient number of qualifying tenants.
- The required minimum number of qualifying tenants must be equal to at least half the total number of flats in the building.
There is no need to prove mismanagement by the landlord or the current managing agent to implement the right. The Landlord's consent is not required and provided the above are satisfied there is reason why tenants can not govern the future of their building themselves.
How Can Setfords Help?
Our many years of property experience allows us to assist you to utilise your right to manage by assisting with such issues as:
- Establishing the Management company and advising new directors on their various duties and responsibilities
- Preparing and serving the Invitation Notices and the Notice of Claim
- Practical as well as legal advice through out the process
To find out more contact us 01483 408780 or email info@setfords.co.uk
