Right to manage
The Commonhold and Leasehold reform Act 2002 created the opportunity for owners of Leasehold apartments to exercise the right to manage their development.
The procedure is most commonly utilised where the lease grants the freeholder unreasonable levels of control over services and costs, and apartment owners often feel that the priorities of the landlord are quite different to those who own apartments.
Even where the lease incorporates a resident’s Management Company the builders who have created the lease often impose conditions which are unfavorable to apartment owners as they need to draft the lease with half an eye on selling their freehold interest when the development is complete.
The creation of a right to manage company can override these onerous conditions and give the apartment owners a voice in how their development is run.
Yes, this all sounds wonderful, but the procedure is formal and will require professional help as what are called “prescribed forms” need to be used in the process and strict timescales are also involved.
The procedure can deal with all the practical aspects of running your development save for two. The remit of the legislation does not include Ground rent payments, which will have to continue as per the formula contained in the lease.
The Right to Manage Company cannot institute forfeiture proceedings to recover service charge arrears although other methods to recover service charges are available.
We appreciate that it can be advantageous to go down the right to manage route and will be happy to advise on individual circumstances. We will administer the whole process without cost to apartment owners as part of our service.
Call Antony on 01226 770088 or email on email@example.com to find out more information or to discuss your options.