Alterations under a RTM

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    Alterations under a RTM

    Myself and a fellow leaseholder recently acquired the RTM of our building. A converted Victorian terrace with 4 flats and separate shop to the front. We are the two directors of the RTM company.

    I own the ground floor flat, which has a garden office. I would like to extend the garden office / build another building beside it.

    We obviously need to get a license to alter for this.

    My understanding is that the RTM has the power to agree alterations, and then give the freeholder a notice period of 30days to raise any objections they may have as set out on the Leasehold Advisory Service information below

    The right for leaseholders of a building containing flats to take over the management of the building. For a brief summary see the Right to Manage fact sheet. APPROVALS

    Most leases contain provisions requiring the consent of the landlord to certain actions by the leaseholder; these can include sub-letting, assigning the lease and making alterations to the flat. The power to issue such approvals passes to the RTM company, although the company must keep the landlord informed. Before granting any such approval, the RTM company must give notice to the landlord:
    • for approvals relating to assignment, sub-letting, placing a charge on the unit, parting with possession, making structural alterations or improvements or changing the use of the unit, the RTM company must give 30 days’ notice.
    • for all other approvals, 14 days’ notice.

    The RTM company does not require the specific consent of the landlord, and if he does nothing, the company may grant the approval. Where the landlord objects, consent may not be granted until the landlord withdraws his objection, or the matter is decided by the First-tier Tribunal (Property Chamber). Where the landlord wishes to object, he must do so by notice to the RTM company and to the leaseholder concerned (and, if the case concerns a sub-letting, to the sub-tenant). Applications to the Tribunal may be made by any of the parties.

    I have discussed this with our newly appointed managing agents who have responded with something different to this saying thier understanding is that the RTM deals with the block building but as my garden office is a separate building on the Freeholders land you would need permissions from them to extend this so If you have obtained this permission from the Freeholder then you can go ahead with your plans.

    I understand this to be incorrect.

    Our lease has the usual clause saying any consent for alterations is not to be unreasonably withheld.

    As this is a standalone new building, I don't see how there can be any grounds for refusal.

    Any help on the above would be greatly appreciated.


    #2
    Apart from the right to do it, there is the small matter of payment. How much are you planning to compensate FH for building on his land (and uplifting value)

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      #3
      to be discussed, hopefully as little as possible

      Comment


        #4
        Originally posted by jazzythumper View Post
        to be discussed, hopefully as little as possible
        And why do you think that might be acceptable. Typically if you build an extension (if it is consistent will all the leases) you might expect to pay perhaps £100,000 in compensation.

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          #5
          Originally posted by AndrewDod View Post

          And why do you think that might be acceptable. Typically if you build an extension (if it is consistent will all the leases) you might expect to pay perhaps £100,000 in compensation.
          I've been through this previously with our pervious freeholder and paid nowhere near that.

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            #6
            Compensation aside, my question was more about the correct process

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              #7
              just wondered if anyone had any comments or advice on the correct process for alterations with a rtm company.

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                #8
                From the sounds of things this alteration is not within your demise. Is it?

                The RTM has taken over management responsibilities with respect to common parts., and can also agree to "not to be unreasonably withheld alterations within demises".

                If not within your demise or if it is an alteration prohibited by the lease (e.g. a change of use) the FH has absolute right to refuse, or to demand a premium. This is not a matter for the RTM at all (beyond acting as a second layer of rejection). So I don't think there is any "correct process". The RTM does not have power to agree to alterations over which it has no power. If the RTM gave such an agreement and it was acted upon, that would be trespass.

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                  #9
                  Originally posted by AndrewDod View Post
                  From the sounds of things this alteration is not within your demise. Is it?

                  The RTM has taken over management responsibilities with respect to common parts., and can also agree to "not to be unreasonably withheld alterations within demises".

                  If not within your demise or if it is an alteration prohibited by the lease (e.g. a change of use) the FH has absolute right to refuse, or to demand a premium. This is not a matter for the RTM at all (beyond acting as a second layer of rejection). So I don't think there is any "correct process". The RTM does not have power to agree to alterations over which it has no power. If the RTM gave such an agreement and it was acted upon, that would be trespass.
                  I'm confused, the studio is in the demise of my leasehold flat, the extension to this would also be in the demise of my flat. The RTM has taken over management of the building that contains the 4 leasehold flats. As advised by the Leasehold Advisory Service in the text at the top of the post wouldn't that mean we need to follow that process?

                  Thanks for your help.

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                    #10
                    So your flat owns the land. Good then, fine.

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                      #11
                      Originally posted by AndrewDod View Post
                      So your flat owns the land. Good then, fine.
                      It’s in the demise of our flat yes, does that mean the advice from the Leasehold Advisory Service applies with the 30day notice period etc?

                      Comment


                        #12
                        Originally posted by AndrewDod View Post
                        So your flat owns the land. Good then, fine.
                        It’s in the demise of our flat yes, does that mean the advice from the Leasehold Advisory Service applies with the 30day notice period etc?

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                          #13
                          Not sure why the above has posted twice, does anyone have any further advice on whether the leasehold advisory service are correct in their advice?

                          Comment


                            #14
                            Just wondered if anyone had any further advice on this?

                            Comment


                              #15
                              No, because we can't read your lease from here

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