A Right To Manage company enables flat owners within a freehold owned block to manage their own affairs in relation to the upkeep and management of their building. It therefore gives you much more control over the place you live.
There are various steps you can take to set up a Right to Manage (RTM) company, including the following:
1. Check your eligibility. Ensure that your building meets the eligibility criteria for RTM, which include having at least two-thirds of the leaseholders in agreement and the building having more than 21 years left on the lease.
2. Form a RTM company: The leaseholders should form a company limited by guarantee and appoint directors. The company should be registered with Companies House.
3. Notify the landlord. Serve a notice on the landlord, informing them of the intention to claim RTM.
4. Acquire RTM. If the landlord does not dispute the claim, the RTM company becomes entitled to manage the building. If the landlord disputes the claim, it can be resolved through the First-tier Tribunal.
5. Start managing the building. Once RTM is acquired, the RTM company is responsible for managing the building, including maintenance, repairs, and insurance.
6. Get expert legal advice. It is advisable to seek professional legal advice throughout the process to ensure compliance with all relevant legislation.
Cadmus Property have partnered reputable solicitors in London and can provide you with details.
If you want to know more about forming a RTM company, our expert team is always happy to answer any questions. Simply contact us for more information today.
By Kalam Elias (MTPI & AssocRICS)
Cadmus Property Team
