Right to Manage (RTM) - Been through process or have an RTM? I have a few questions.

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    Right to Manage (RTM) - Been through process or have an RTM? I have a few questions.

    Right to Manage (RTM) - Been through process or have an RTM? I have a few questions.

    26-06-2020, 15:12 PM
    Hello everyone,

    My flat I live in, in East London, is in a block of 2 flats (converted house). Both leaseholders are interested in a RTM opposed to Enfranchisement due to premium of enfranchisement.

    We could at a stretch probably afford to buy the freehold, but would rather not if possible.

    My questions are around charges the freeholder could continue to charge going forward and any sneaky fees the freeholder could continue to add?

    What sort of things could a freeholder still charge us for that is not related to the day to day running of the block that we would be taking over responsibility for?

    The sort of things that come to my mind are:

    - Randomly sending 'professionals' to the building to check the condition. Could they send a surveyor to check the roof every year? Every month?

    - Could they send someone to check the drains, paint work, windows. Again, how often?


    What I'm trying to figure out is, if the freeholder wanted to maliciously rack up fees for us, what are they entitled to do?

    Are there any other sneaky things in the process to watch out for?


    Also, how much should we be paying professionals to complete the RTM process for us. I've heard people say a few hundred to a few thousand? Are there any companies that you've used/had dealings with that I could look into (PM me if you don't want to put there name on the open forum)?

    Thanks everyone

    #2
    We were in the same situation as you when we applied for RTM - a house converted into two flats. First thing is to informally speak to your freeholder about what their view would be if you applied for RTM. If they are supportive, then you can actually do all the paperwork yourself. Everything you need is available online.

    In terms of the ways the freeholder might try and make things financially difficult for you, the most likely way is to object to you acquiring the right in the first place so you have to go to tribunal.

    Once you have it, you are legally in charge of managing the building, not the freeholder. They can send whoever they like to look at things like the roof and drains etc but they can't charge you anything for it.

    The main area where the freeholder might try and make things difficult is in relation to approvals. You have to notify the freeholder when you plan to grant approval for a leaseholder to make alterations to their premises. Now the law says that technically all the freeholder can do is object and if you can't reach agreement then you need to go to tribunal to get the matter decided. That will obviously cost you money.

    However, I am not quite sure how this works but apparently some freeholders still charge for giving approvals in this situation, which doesn't really make any sense as they can't actually approve anything, only object. If you wanted to challenge that then I guess you're off to tribunal again.

    Comment


      #3
      After RTM commences administration, any payments ( excluding ground rent ) due to the freeholder or its agent, becomes due to the RTM.

      Comment


        #4
        Gordon999 Thank you very much, this is exactly what I was after! I don't suppose you could point me to the relevant part within the law about this, that I can refer to?

        chris1544 Thank you very much for your experience on this. It's been really helpful to read through what someone else has been through. I'll have to keep the other bits you mentioned in mind for the future regarding approvals etc - very useful info! Thanks again

        Comment


          #5
          See section 98(6) of the Commonhold & Leasehold Reform Act 2002. Better to study Sections 96-98

          http://www.legislation.gov.uk/ukpga/2002/15/section/98

          Comment


            #6
            One thing the more unethical managing agents have been doing since the explosion in RTM claims is charging a 'ground rent collection fee' as a way of chivvying money out of leaseholders. I don't think they can legally do this following RTM. But many of them are.

            Comment

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