Here are three recent case studies where Your Right to Manage was able to help leaseholders achieve a better deal.
A block of 5 flats in west London
The property, a Victorian mansion block, had been mismanaged and neglected by the landlord’s managing agents. The managing agents subsequently went into receivership and were absorbed into a large group who did not inspect our client’s property. They also had a block insurance policy agreement across their estates.
We assisted two of the leaseholders to identify the absentee leaseholders in the block and gain a majority interest to form a Right to Manage company. We subsequently project managed a long overdue common parts refurbishment.
We were retained to handle the on-going management and, in the first year, reduced the service charge whilst improving the services provided. This was achieved largely because we negotiated a much lower insurance premium. This was reduced from £3,000 to £850 per annum for the same level of cover.
A block of 25 Flats in Holborn, London, having three commercial properties beneath
During the creation of the Right to Manage company the Freeholder tried to claim that the commercial area was greater than 25%. This was subsequently refuted. After the Right to Manage company took control and the papers were released by the landlord, it was apparent that widespread overcharging for most service contracts and maintenance had taken place. We were able to achieve significant savings to maintenance costs, remove the inefficient and probably fraudulent cleaning company, and find substantial savings on the insurance premium.
A block of 10 flats in North London
The property, a 1960s built block, had a flat roof that was in urgent need of replacement. The Freeholder, a Trust, insisted on using an expensive firm to repair the roof. Every year various reports were written and the proposed costs escalated for what was a relatively simple job. Still the water kept seeping through. Eventually three active leaseholders asked us to help them gain control from the Freeholder. A RTM company was formed and, with our assistance, the leaseholders were able to get a 20 year warranted roof replacement undertaken for just 70% of the price the Freeholder’s contractors had quoted.
A block of 5 flats in South London where the Freeholder landlord occupied one of the flats
We advised that the block was large enough to qualify under the act and successfully applied on behalf of the remaining 4 leaseholders to take control of the block.
The landlord/ freeholder eventually vacated the flat they were occupying and the leaseholders subsequently bought the Freehold in.
A multi-use building comprising a commercial ground floor and basement let as a gym with 14 flats above
We advised the leaseholders whether they qualified to take over the right to manage on the grounds that over 50% of the property was in residential use.
We inspected the property and measured it in accordance with the RICS code of measuring practice following the guidelines as to which elements of the building could and could not be included in the calculation. We reached agreement with the freeholders surveyor that the property qualified and they were able to win control . We subsequently advised the members of the RTM company on the creation of a service charge regime that reflected the mixed responsibilities for the residential and commercial elements of the building and were appointed managing agents for the RTM company.
A multi-use building in NW London comprising two joined blocks of 12 and 3 flats that although separately accounted for service charge purposes formed part of a larger estate
We inspected the property and examined the Service charge records construction plans etc to determine whether the property could be considered self contained under the provisions of the legislation. We concluded that because part of a carpark and certain roof gardens were in fact directly above and below the adjoining building, which was also owned by the freeholder, that the property could not be considered self-contained . We advised the leaseholders of this decision before they applied for RTM or formed a RTM company. Thereby saving time and costs.
