Where do I start?

In order to qualify to form a Right to Manage company: 

• Over 50% of the leaseholders need to support the idea.
• The residential element of the building must be at least 50% of the property. So if there are commercial parts to your building they must not exceed 50 % of the total floor area.
• 66% of the leaseholders must have ‘long leases’ defined as one originally granted for more than 21 years at a premium and a low annual rent.
• The building must be self-contained and have 2 or more flats.
• There are special regulations if the freeholder lives in the building.
• The landlord is not a Local Authority.

What should I do I next?

Informally canvass your fellow leaseholders to see if a majority of them want to join a RTM company and whether they qualify.

If you do not know any of you neighbours we can assist you in contacting them.

Then contact us

Once at least 50% of your co-leaseholders have indicated that they would support the formation of a Right to Manage company we can assist by:

• Formally canvassing all the tenants
• Preparing the paper work
• Attending a leaseholders’ meeting to explain the procedures, costs, potential savings and timings
• Setting up and registering the RTM company

We will also provide detailed Factsheets to guide you through the process and highlight the potential issues and pitfalls.

Timing

To set up the RTM company and go through the entire process could take an average of six months assuming the landlord does not object. This depends on how quickly all the leaseholders can be canvassed and agree to the principle. 

To set up the company you will initially need 1-2 directors and a secretary, we can take on the secretary role until the application is successful. Whereupon the leaseholders can decide who will take on that role. 

Leaseholders are then sent a formal invitation to participate.

Provided a majority agree, over 14 days later notice is served on the Landlord. This notice must be filled in correctly with precise details of the participating leaseholders and details of their leases so when the invitation to participate is sent out this information is requested. This is served under Section 79 of the Commonhold and Leasehold Reform Act 2002.

It would be prudent to also set up a company bank account at that time or consider if you need a property manager to use their client account we can advise how many accounts may be needed this will depend on  the size of the block and whether there are is a reserve fund (sinking fund)in place or needed.

The Landlord then has 1 month to object and if he doesn’t after 3 months the management is transferred to the RTM Co. The freeholder has to then pass over all relevant documentation and funds to the RTM company.  

On-going management

Once the RTM process is approved and your company is in place, if you so desired, we and JP Elliott could then manage the building on your behalf and set up all the payment processes.

In the first year of management, we would also review all existing contracts, the performance of the contractors and establish an effective building maintenance programme.

Insurance is often one of the largest items of expense – often because in the past landlords have been able to earn sizeable commissions for inappropriate block policies. It is our policy to pass on all insurance savings and commissions to our clients – you the leaseholders. By this simple process alone we can achieve considerable reductions to your service charges and sizeable savings are often possible.

We will report to you, the members of the RTM company, monthly, quarterly or annually as requested. We will also organise the Annual General Meeting (AGM), appoint auditors and will be available to solve all your maintenance or repair problems no matter how big or small.

Your funds will be held in a ring-fenced client account, which is independently audited and RICS regulated.

We regard good communications with our clients as a vital part of our service. While we use the postal services when required, we encourage our clients to contact us by telephone, email or WhatsApp group. We also provide each group of tenants with their own dedicated website portal which only they have access to. As well as offering useful general information, from this site clients with internet access can download AGM minutes, accounts and up-to-date maintenance schedules.

Ethos

Our professional practice has been built on personal service and, as we grow, we have ensured that the people we employ always remember and live by that maxim. We know that silence is often the worst thing. Managers that don’t communicate or ignore complaints because their employers, the landlords, cannot be bothered can be intensely frustrating. This is often cited as one of the main reasons why people set up Right to Manage companies in the first place. We, on the other hand, are answerable to you.