RTM/RMC's
Are you unhappy with the level of your service charges, extortionate insurance premiums and lack of communication from your current Manging Agents? Right To Manage (RTM) gives you the statutory right to take the management of the building away from the Freeholder and gives you the freedom to have more say if not dictate in the running of your development. Praxis Block Management have experts to guide you successfully through the process. We are experienced in setting up RTM Companies and delivering the correct Notices on the Freeholder so leaseholders need not worry.
FAQ
Commonhold and Leasehold Reform Act 2002
If you are unsure as to whether your block is eligible then we would be delighted to guide you through the process. The qualifying criteria are as follows: (i) the building must contain at least two flats, (ii) at least two-thirds of the flats within the building must be owned by long leaseholders (i.e. leases have more than 21 years since granted) and (iii) at least half of the flats must support the RTM.
There are a series of steps that need to be correctly completed in order to achieve RTM status and like any legislative procedures, there are pitfalls. Our staff have the experience and legal know-how to help you reach your goal. We have summarised the steps for you:
Step 1 An RTM Company needs to be set up
Step 2 Serving invitation Notices of leaseholders and Notice of Claim on the Freeholder
Step 3 If the Freeholder does not contest the claim then the RTM Company acquires the right to manage in four months.
The process typically takes between five to seven months to complete.
Our Managing Agent Fees are applicable and can be discussed if Praxis Block Management are appointed as Managing Agents once the RTM process is completed. The RTM Company may be also liable to pay the Freeholder’s reasonable legal costs. This varies between Freeholders however fall between £600.00 and £3,000.00. The Freeholder’s costs can be challenged in The First Tier Tribunal.
Pros
- Absolute Control of Service Charge Funds
Leaseholders can tailor their budget to their requirements and affordability and thus spend their service charge funds in the best interest of the building. - Arrange Your Own Buildings Insurance
RTM allows leaseholders to negotiate their own buildings insurance through their own contacts and avoid any Freeholder commissions. - Absolute Control of Major Works
RTM gives leaseholders freedom to qualify and quantify any major works and allows them to use their own trusted builders and professional bodies. - Power to appoint Professional Managing Agents
RTM allows the leaseholders to appoint their own trusted block management company and still call the shots whilst removing any administration headache.
Cons
- Expensive
If for any reason the Freeholder disputes the RTM claim then the leaseholders take on the liability for the Freeholder’s costs. - Legal
Whilst there are benefits for RTM, there is still a lengthy legal process and room for errors at each stage. - Disputes
The RTM Company will be responsible to handle and resolve any disputes between leaseholders and any disputes raised against the decisions made by the RTM company itself. - Service Charge Arrears
The RTM company will be responsible to manage the service charge arrears of their fellow co-leaseholders and resolve any associated disputes. - Compliance
RTM Company will be responsible for the statutory compliance taken over from the Freeholder, i.e. Fire Safety.