Can RTB flats' lessees use RTM/RTE against Council?

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    Can RTB flats' lessees use RTM/RTE against Council?

    Long story short, I bought the flat where I live on the Right to buy from the local council. I still have about 120 years lease to go. The flat is what used to be ex victorian houses split into upstairs/downstairs flats. Both flats have a door to the pavement/street and both have own back gates and back yards. Basically there are loads of flats like these in the country. In my road there are loads like it. Mostly are private but myself and my next door neighbour are both ex council.

    Ground rent is £10 a year. Managment charge used to be £25 a year but since they got a new managment company in it has gone to about £125 a year.

    (Compared to some that I have read I would say you must be saying "Not bad really"). Problem is the Managment Company are a pain in the rear. They seem to think they are something big and we are nothing. They kept sending these "newsletters" (or bragging letters as we call them) and they keep on about how "they own the property" and "we are only tennants on a long lease".

    Q: What needs to be done so that my neighbour and I can buy any rights (or whatever they are called) and make these flats like the other ones in the street? i.e. Get rid of this Managment Company and, instead of being on a long term lease become stanard residential properties (like the flat on the other side of mine)?

    My flat has just been valued at £97,000 (In the North East) and I know my next door neighbour bought the lease for hers for about £60,000 but she got it cheap cos it had been allowed to run down and had a lot of repairs to do. I thinks she has about 95 years lease left on heres.

    Thanks for any advise.

    #2
    As both you and neighbour (N) are leaseholders, and there are only two flats in the building, you can jointly use:
    a. RTM (Right To Manage); or
    b. RTE (Right To Enfranchise).
    There are many LZ threads on each. Also see the Leasehold Advisory Service website here: http://www.lease-advice.org.

    This assumes that the Council are no longer involved and that the 'management company' now owns the freehold reversion.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Originally posted by jeffrey View Post

      This assumes that the Council are no longer involved and that the 'management company' now owns the freehold reversion.
      Thanks for the reply. In respect of the above, the Council basically appointed a company (which we all know is kind of a subsidary in fact for example, if the Council is called AAA Council the managment company is called AAA Homes). All employees of the Council who are like plumbers, electricians etc got transfered to this company. In one of their leaflets it said something about how they can obtain more money like this from the Goverment re building and repairs.

      Also the Council is still the Freeholder and when we pay we go to a Council office (same as if paying tenancy rent) and make the cheuque payable to the Council even for the Managment Charge.

      By the way, I signed my long term lease before the Council brought in this firm to act on their behalf. The lease says that the Council can appoint another firm to act as their Managment representatives.

      I will have a look at the link you kindly gave me and also do a search. Also in case it may help, AAA Homes also manages the Council rented properties. It is supposed to be one office with 3 employees to look after long terms leaseholds and the others to look after the rented properties.

      Comment


        #4
        Aha- so the AAA Council still own the f/r. 'AAA Homes' seems to be merely a contractor which they created for these/other purposes.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          Originally posted by jeffrey View Post
          Aha- so the AAA Council still own the f/r. 'AAA Homes' seems to be merely a contractor which they created for these/other purposes.
          Got it in one. At one time it used to be AAA Council. Now anything to do with property (rented or leasehold) is AAA homes. Same offices, same staff. Just a new emblem on top of the building, vans a lick of paint and AAA Homes painted on them. BUT payments still made to AAA Council for rent and managment charges.

          So seeing how the subject topic has been changed, can RTB flats lessees use RTM/RTE against Council?

          Thanks for any info.

          Comment


            #6
            Why shouldn't they? The Council are no different from any other freehold reversioners when it comes to leaseholders' RTE.
            However, RTM will not apply if Council own f/r as local housing authority: para. 4 in Schedule 6 to the 2002 Act says so.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment

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