RTM setup for 1 estate comprised of 2 blocks

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    RTM setup for 1 estate comprised of 2 blocks

    Hello,
    We are 2 blocks separated physically but located at the same address with one freeholder.
    We will be exercising our RTM with a large majority and we pay the SC in the same pot.
    We meet all criteria as qualifying tenants etc.
    Based on current law I understand 2 RTM companies will be required to be setup "Block 1 RTM Company Ltd" and "Block 2 RTM Company Ltd".
    1) How does "block 2" give the right to be managed by "block 1" at 100%?
    2) At which step in the process this needs to be done?
    3) Which Ltd company leaseholders living at this adress can they join as a member or a director? Can leaseholder living in Block 1 join the "block 2 RTM company Ltd" and vice-versa?
    Regards
    LH

    #2
    Hi there,

    I have found the following article on Lease:
    https://www.lease-advice.org/article...lding-estates/

    "those entitled to membership of an RTM Company are qualifying tenants of flats contained in the premises and landlords under leases of the whole or any part of the premises.
    Accordingly, if a company was an RTM Company in relation to premises A, only qualifying tenants of premises A and relevant landlords of premises A are entitled to be members of that RTM Company.
    Section 74 does not envisage that qualifying tenants of flats contained in premises B and relevant landlords of premises B are also entitled to be members of that RTM Company.
    [...]
    There would be nothing to prevent two or more RTM companies, which were established in relation to separate blocks on the same estate, from entering into an agreement to delegate management to one of the RTM companies, or indeed a third party manager, to act on behalf of both or all: the articles explicitly provide for delegation."

    So it answers my question on leaseholder's membership.
    Now, how do you make an agreement between 2 RTM companies for the delegation of admin and management? What does it mean for leaseholders / members of block 2 then compared to leaseholders./ members rights of block 1?

    Thanks for your help.
    LH

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