Latest News Article "A wake-up call to property owners who allow others to occupy land they own as if it were the squatters' own land" View Articles >   Please contact us on 0208 989 3000 or email tmurphy@huggins-law.co.uk RIGHT TO MANAGE ARE YOU AN OWNER OF A FLAT IN A BLOCK? ARE YOU UNHAPPY WITH THE WAY YOUR BLOCK OF FLATS IS BEING MANAGED? In 2002, the Commonhold and Leasehold Reform Act 2002 introduced a right for qualifying tenants owning flats in a qualifying block* to come together and collectively take control of the management of their block without having to purchase the freehold from their Landlord. Benefits: As tenants exercising your collective right to manage you are in control of the management of your block without having to purchase the freehold interest in the building You do not need to obtain your Landlord’s consent You do not need to prove that your Landlord has mismanaged your block You do not need to be resident in your flat to participate You can each own more than 1 flat in the block and still participate You instruct Managing Agents of your choice and set the budget for the Service Charge payable including any reserve and sinking funds, saving money on maintenance and repair. Alternatively, you can manage the block yourselves. You instruct the Insurers of your choice and negotiate the Insurance policy and Premium payable. There is no price to pay to exercise the right to manage (but you will have to pay your Landlord’s reasonable costs). * You will collectively qualify for the right to manage if:- Together you are the leaseholder owners of flats, not houses Your building must be a self-contained block of flats (or at least not part of another building that could be independently redeveloped) Your block must contain more than 2 flats More than 2/3 of you must own leases granted for a term longer than 21 years (e.g. if there are 10 flats in the block, at least 7 must be held on long leases) The minimum number of qualifying tenants represents at least 50% of the flats in the block (e.g. if there are 10 flats in a block owned by tenants on long leases, at least 5 must join in) Less than 25% of the total floor area in the block is used as commercial premises To exercise the right to manage, the process involves the creation of a specific company in which all of you who are participating tenants (and where elected, your Landlord) are shareholders (“RTM Company”). The process then involves the service of Notices and Counter notices, with your Landlord only being able to object on the basis that (a) your block does not qualify; (b) your RTM Company does not conform with company law requirements; or (c) that the minimum number of qualifying tenants is not satisfied for the exercise of the right to manage. Once the Notices have been served and your right acknowledged, a date will be agreed for the transfer of the management from your Landlord to you. Your RTM Company will be liable for your Landlord’s reasonable costs incurred as a result of you exercising your right to manage. Our costs are dependant upon several factors but will be based on advising you of your rights and carrying out the legal formalities involved in exercising your right, including the transfer. At Huggins we can advise and guide you through the complex and technical statutory process of exercising your right to extend your lease and we look forward to discussing this opportunity with you. Please contact us on 0208 989 3000 or tmurphy@huggins-law.co.uk " This guide is intended as general information only and it does not seek to summarise the relevant legislation which is a complex and technical area of law. This guide should therefore not be relied upon and you should take specific professional legal advice relating to your personal circumstances prior to proceeding with enfranchisement."