A few right to manage (RTM) questions

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    A few right to manage (RTM) questions

    Hi — based on unsatisfactory building management, I’m in the early stages of looking at forming a right to manage company for the building I live in with 65 residential units (a mix of private, affordable and shared ownership). I have a few questions and would appreciate someone’s help:
    • I understand that I need at least 50% participation from leaseholders — does confirmation on email count as confirmation of participation?
    • I live in a building with 65 residential flats which has a mix of private, affordable and shared ownership flats. Is it 50% of the private flats I need to participate or all flats including shared ownership and affordable housing?
    • How many people are required to form the RTM company? I have read a minimum of one or two depending on the website. Also, is it only leaseholders or can tenants (non-owners) also join?
    • How do I reclaim the legal costs I will have to pay? Can this be added to the service charge after the RTM claim is successful?
    • Finally, I understand as part of leaseholder reform that’s been announced that some of this might become easier/cheaper — is that fair to say and worth waiting for? If so do you have an idea of when the reform will be implemented?


    Thanks in advance for your help.

    Kind regards,

    #2
    Download the free guide to RTM :

    https://www.lease-advice.org/advice-guide/right-manage/

    Comment


      #3
      To form the RTM company requires one director.

      Your fellow neighbours will need to sign the companies house IN01 form as either director or member when registering the RTM company.

      Once the RTM is formed, neighbours will need to fill in a membership form as stated the Articles, if they wish to join at a later date.

      You can form RTM company for £40 through postal application. Its imperative to get the Articles of Association right.

      You can go download the freehold title for £3 from the Land Registry -this should list all the parties, ie 65 lessees if there is no intermediary landlord. If so 33 lessees need to become members of the RTM at the time of the Claim Notice is issued to the freeholder.

      If its pure residential properties and no commercial property, this makes the process simpler.

      Legal costs are separate to the service charge account.

      Comment


        #4
        I recommend that you seek professional advice especially if your right may be challenged. You need to serve notices under s78 and s79 CLRA 2002, you are required to pay the freeholder's costs and they will be greater if there are errors within the notices.

        Comment


          #5
          Originally posted by Callan1 View Post

          You can go download the freehold title for £3 from the Land Registry -this should list all the parties, ie 65 lessees if there is no intermediary landlord. If so 33 lessees need to become members of the RTM at the time of the Claim Notice is issued to the freeholder.

          .
          Hi Callan1 On https://eservices.landregistry.gov.uk/, I cannot find the way to download the freehold title: after entering the postcode and house number, I have the list of each flat/properties of my block where I can download the title register at £3 each but there is no solution to pay £3 and list all the parties within 1 title register. Can you advise? Thanks so much.

          Comment


            #6
            stokey83,

            The freehold title doesn't list all parties, you will need to pay £3 for each flat title to get the owner's names, however often if will only give flat address even if it's rented out so best bet is knock on doors or leaflet each flat and say what you're doing first.
            That way you can judge enthusiasm and see how likely you are to get 35 supporters before downloading more titles

            Comment


              #7
              When we did this in one block we started a FB group and stuck a note on the main door inviting people to join.

              Comment


                #8
                stokey83,

                i think against each property there is a leasehold title and freehold title..The freehold title is the same for each leasehold title so you only need to download once. I was working from memory - the f/h title does not list the parties but it does list all leases of the properties - at least mine does.

                Its a straightforward process if you do your research and there is enough information out there to help. However the more variables there are ie number of properties, different types of owners, intermediate landlords etc you may well be advised to seek professional advice as eagle2 suggests.

                Comment


                  #9
                  Callan1,

                  Thank you for the information. Much appreciated.

                  Comment


                    #10
                    Originally posted by charlie8899 View Post
                    [*]How do I reclaim the legal costs I will have to pay? Can this be added to the service charge after the RTM claim is successful?[/LIST]
                    You can't unless your lease says you can and that is very very unlikely. Best to get your co applicants to help fund it as if the building is large and lucrative your freeholder may put up a fight and things can get expensive. In any event, tribunal applications and the like may be necessary - it's worth ensuring your stakeholders know they might have to put their hands in their pockets in the first instance.

                    I would recommend getting a third party to do the RTM for you if your freeholder is aggressive.

                    Comment


                      #11
                      Thanks. I can see why the RTM process is being reviewed as part of leaseholder reform. When dealing with a large(ish) block it becomes challenging to orchestrate this, that's why I was hoping to be able to pay myself and claim it back. It's been pointed out to me that some building management companies will take care of the legal costs based on you signing up with them for a period of time -- not ideal, but might be the easiest option.

                      Comment


                        #12
                        I have heard that some managing agents will guide you through the process and will not seek any upfront monies as long as you agree to appoint them for at least one year. That helps when you are up against a difficult freeholder. I am not aware that a managing agent will pay the legal costs, you would be told that it is unnecessary to instruct solicitors but you would still have to pay the freeholder's costs,

                        Comment


                          #13
                          Originally posted by charlie8899 View Post

                          Thanks. I can see why the RTM process is being reviewed as part of leaseholder reform. When dealing with a large(ish) block it becomes challenging to orchestrate this, that's why I was hoping to be able to pay myself and claim it back. It's been pointed out to me that some building management companies will take care of the legal costs based on you signing up with them for a period of time -- not ideal, but might be the easiest option.
                          You have no legal costs initially except land registry charges if needed to trace flat owners. The first thing you need to do is get 35 flat owners to commit to joining the process, everything else is a waste of time.
                          (Any owned by landlords with more than one property only count as one vote)

                          Comment


                            #14
                            You need to be extremely confident to be able to deal with the entire process yourself. There are other costs such as the Company formation expenses including the special Articles of Association and you cannot avoid the freeholder's costs, If the freeholder is uncooperative, you should expect him to employ solicitors to find small technicalities in order to frustrate the process.

                            Comment


                              #15
                              Originally posted by charlie8899 View Post

                              Thanks. I can see why the RTM process is being reviewed as part of leaseholder reform. When dealing with a large(ish) block it becomes challenging to orchestrate this, that's why I was hoping to be able to pay myself and claim it back. It's been pointed out to me that some building management companies will take care of the legal costs based on you signing up with them for a period of time -- not ideal, but might be the easiest option.
                              That's not quite the same thing I'm afraid. There are companies out there who will take on the responsibility of doing the RTM on your behalf in exchange for managing the block for a few years. They'll apply for the RTM, they'll fill out the paperwork, they'll send the applications and ensure they're received, and they'll manage the end to end process. It is brilliant and I recommend it.

                              They may even - if you are lucky - agree to throw in any tribunal applications (if necessary, if your freeholder isn't playing ball) as part of the process. However, it is very unlikely that they will throw in any legal representation required at those tribunals. That is a cost which can spiral.

                              Even if by some miracle you find someone who is good enough to throw in that freebie, you will STILL ALWAYS be responsible for the freeholder's legal costs. No managing agent will pay that. You'll have to do it. And if your freeholder is difficult, that can come expensive.

                              My freeholder attempted to claim £8k in legal costs. At tribunal we got this reduced to £4k. But of course we had to pay for that tribunal application too, and the legal costs involved in filling out the claim.

                              Basically what I'm saying is, do not half arse this if your freeholder is aggressive. In my block, a guy tried going for RTM before me and he failed, losing a lot of people their money, many of whom became sick - one died - as a result of the stress. I'm not trying to take the wind out of your sales - I think you should do RTM - but I also think you should align yourself with someone who knows the worst case scenario so you can manage your stakeholders correctly.

                              I went with Canonbury Management and they were excellent. I recommend at least talking to them for a view on what your freeholder is like. If he's aggressive, be careful.

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X