RTM - what happens now?

[laurag1974]

Hi there,
I live in a building with 3 flats (flat A, B and C): all 3 flats are privately owned and we all have the same freeholder who is our Management Company too.
Myself (flat B) and the owner of Flat C have formed an RTM company to be in charge of the management of the building: we have served Flat A with a notice of participation and the management comapny with the formal notice required to take over. None of them replied.
We have also asked the current management comapny to provide us with all documentation regarding the building and access keys to Flat A garden so that we can use them if works ned to be carried out, but have heard nothing.

The official change over of managemnt is at the beginning of November.
What are our rights if the current management company keeps on ignoring us?
What happens if the owner of Flat A refuses to pay works we need to carry out?

Thanks very much

[leaseholdanswers]

Have you made sure that the notices have been served on the landlords address shown on invoices look for "notice under section 47/48 etc the landlord is..."

It must be served on the freeholder as named in your title, not the management company eg if Fred Bloggs is the freeholder and Fred bloggs estate managment the agent it must be served on the former.

It is worth going to HMLR and getting a copy of the entry for your flat so that you check the name of the freeholder is correct in your notice.

If they do not respond then you can assume RTM or apply to the LVT for determination.

You start afresh and therefore can change the locks as long as you have right to use the garden and repair responsiblity for the gate.

They are obligated to hand over all sums of monies held and again the LVT can rule on that as well.

[sgclacy]

if Flat A, fails to pay then you will need to start forfeiture proceedings and these will need to be taken in the name of the freeholder. the freeholder can request that the RTM indemnifies him on his costs. An RTM cannot threaten forfeiture it has almost no powers in it own right it has to liase with the freeholder

You will in any event need to advise the freeholder if any lessee is in arrears by more than three months

[andydd]

if Flat A, fails to pay then you will need to start forfeiture proceedings and these will need to be taken in the name of the freeholder. the freeholder can request that the RTM indemnifies him on his costs. An RTM cannot threaten forfeiture it has almost no powers in it own right it has to liase with the freeholder

You will in any event need to advise the freeholder if any lessee is in arrears by more than three months

Surely an easier route would be to start a county court claim against Flat A to recover the money ? (I'm assuming an RTM has this right).

It is well known the forfeiture is a very drastic option and rarely followed through to completetion (although depending on how savvy the tenant is, it may be a good scare tactic).

Surely forfeiture wouldnt benefit the RTM, only the freeholder, and I'm not sure even if forfeited how the RTM would get its money.

Andy

[laurag1974]

Thanks all

[jeffrey]

Surely an easier route would be to start a county court claim against Flat A to recover the money ? (I'm assuming an RTM has this right).

It is well known the forfeiture is a very drastic option and rarely followed through to completetion (although depending on how savvy the tenant is, it may be a good scare tactic).

Surely forfeiture wouldnt benefit the RTM, only the freeholder, and I'm not sure even if forfeited how the RTM would get its money.

No- RTMC has no right of forfeiture, as that's an incident of a reversion which RTMC does not own.

In fact, s.100(3) of 2002 Act makes that explicit.