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    Hello, can anyone assist me with RTM rules.
    I live in a block of apartments who are at present being managed by a Management Company, some of the residents are considering changing to RTM. There are some leaseholders who do not wish to form or join the RTM if the management changes. From my understanding 50% of the leaseholders have to agree, my fear is that they will achieve their quota, if this happens, have we any rights, or have we got to join RTM, or is there any way we can make an appeal not to join.

    It's the leaseholders CHOICE to join or not, it's that simple.
    If you don't join, you can't go to RTM meetings, and it is in your interest to know whats going on.
    Just join,BUT you will be asked to pay your share of the costs for forming the R.T.M.
    ( no pay, no can join - usually )


      If a block of flats has just been built or converted, the cost of forming a company to manage, together with writing all the leases ( rtm wont tough the leases - they stay the same ) all the legal costs making that company is put on the price of the flats. so the costs of making an R.T.M company has to be passed onto the leaseholdrs who join the company.

      if you want to join later, and they let you, you will have to pay the same as everyone else paid, and not a percentage of one more flat in the equasion, as why should you pay less than everyone else.

      example - 10 ftats costs each £ 200 for the £ 2000 bill.
      But if another joined later, it's not £2000 divided by 11, as that would mean you only paid £ 181.81 before someone trys to say they should pay less.


        The advantages of RTM are pretty obvious, i.e the leaseholders actually get to decide on maters instead of a (sometimes) distant freeholder, the fact you have a management company is bit irrelevant as at the moment they do the FHs bidding but it can be the case that the RTM employs the same management company who will then take orders from the RTM, you will have greater control over maintenance and finances, and in theory may cost you less.

        I dont understand the above calculations, whether you are a member of the rtm or not you will still pay the same as per obligations of the lease, you will be managed by the RTM whether you choose to join or take an active part.
        Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

        I do not accept any liability to you in relation to the advice given.

        It is always recommended you seek further advice from a solicitor or legal expert.

        Always read your lease first, it is the legally binding contract between leaseholder and freeholder.


          Originally posted by andydd View Post
          I dont understand the above calculations, whether you are a member of the rtm or not you will still pay the same as per obligations of the lease, you will be managed by the RTM whether you choose to join or take an active part.
          The calculation weren't or costs that are to be paid under the terms of the lease, they were for the cost of getting the right to manage.

          If a RTM is successfully set up leaseholders will be managed by them whether they choose to join or not - the cost is for if they want to be a member of the RTM company and have the right to vote on decisions affecting the block.
          Members get more opportunity to influence the way a block is managed; non-members only have their statutory rights.


            Under the leasehold system and the terms of the lease , the leaseholders are required to pay annual service charge to the landlord/freeholder who has the legal right to demand service charge payment under the lease .

            Very often, the freeholder could appoint a managing agent to operate the service charge account, giving benefit of the freeholder such as demanding insurance commission from the insurance company. This raises the cost of annual service charge and other charges ( registration of mortgage, subletting etc ) paid by the leaseholders. The service charge payment in advance is really a blank cheque , extracted from the leaseholders.

            The RTM company has the legal right to claim the right to manage of the service charge account from the Freeholder, but to set up the RTM company, it must be supported by more than 50% of the leaseholders in the block of flats.

            The RTM company in control of the service charge account should be better for the leaseholders because leaseholders are unlikely to suffer abuse of their blank cheque ( paid to the service charge account).


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