ABOUT THE RIGHT TO MANAGE

WHAT IS THE RIGHT TO MANAGE?

The Right to Manage (RTM) is a legal right that allows us, the leaseholders, to take over the management of our building without having to prove any fault with the current management company. This process empowers us to make decisions about how our building is run and who manages it.

WHY CHOOSE THE RIGHT TO MANAGE?

Currently, our freeholder is the decision-maker for our block. They decide on budgets, what work is required, and which managing agent they use. Once we exercise our Right to Manage, we have full control over the decision-making process, including setting our own budgets. While this might seem daunting, once established, we will form a company and pass all the daily duties of managing the block onto a professional managing agent.

ELIGIBILITY CRITERIA FOR THE RIGHT TO MANAGE

• Participation: At least 50% of the flats in the building must participate in the process.

• Local Housing Authority: The RTM process does not apply if the immediate landlord is a local housing authority.

• Qualifying Tenant: A "qualifying tenant" is a leaseholder whose lease was originally granted for a term exceeding 21 years.

• Non-Residential Areas: The building does not qualify if non-residential areas exceed 50% of the total floor area (excluding common parts).

THE RTM PROCESS

It is our responsibility to reach the agreed sign-up rate. Once achieved, SMSC will handle the remaining steps. The outline below details the process they will follow.

2. Company Formation:

SMSC will establish the RTM Company on our behalf. We will need to appoint the company directors.

3. Serving the Notice of Participation:

SMSC will download all Land Registry documents and issue the notice of participation to the leaseholders.

1. Initial Interest and Sign-Up:

Promote the initiative. Once we achieve the required sign-up rate, we will need to pay Save My Service Charge the £144 fee.

4. Serving the Notice of Claim:

SMSC will serve our Freeholder the notice of the claim.

5. Freeholder's Response:

The Freeholder has 31 days to respond to the claim. SMSC will handle any challenges from the Freeholder.

6. Select and Appoint Managing Agent:

Once the Freeholder accepts the RTM, we can proceed to select and appoint a new Managing Agent.