Page 2 - right_to_manage

A step by step guide to right to manage 1

Step 1 - Ask around

To start the Right to Manage (RTM) process, first you will need to know whether or not your block will qualify.
If your block passes the following four tests, the next step is to form a Right to Manage Company (see
Step 2).

Can we qualify for RTM?

Test 1 - Are there two or more flats in the block?
Test 2 - Are there two leaseholders willing to be directors of the RTM Company?
Test 3 - Does your block consist of a self-contained building or self-contained part of a building (ie, it could
be redeveloped independently and has, or could have, its own services)? If there is any commercial/non-
residential element this to be no more than 25% of the floor area.
Test 4 - Do at least two thirds of the flat owners have long leases (original length of lease more than 21
years)? It does not matter if flat owners do not live in or rent out their flat.

Once you are satisfied that your block will qualify, we recommend that you send a letter
explaining what RTM is all about, that you would like to help your block claim RTM and setting
out the reasons why RTM would benefit your block.

You will need the names and addresses of the other leaseholders in your block to tell
them about RTM and invite them to participate. You will need to invite every leaseholder
and the freeholder to participate in your RTM claim, so you should encourage everybody
to respond.
There are several ways find out who your fellow leaseholders are:

• You can knock on doors;
• You can ask any sub-tenants who they pay rent to;
• If they pay rent to an agent, ask the agent to forward on a letter to the owner;
• Write to the freeholder asking them for a list of lessees;
• Instruct us to do a land registry search on each flat at a cost of £10 + Vat per flat; or
• Instruct us to serve an information Notice for you at a cost of £250 + Vat.

You will need support from at least one other leaseholder to get started –as two leaseholders
are needed to initiate the process.

If you don't get a response from every leaseholder and the freeholder you will need to serve a
formal Participation Notice (see Step 3) which cannot be served until you and at least one
other leaseholder have formed an RTM Company. You don't want to go to the expense of
forming your RTM Company if there is insufficient interest, so gaining. The support of your
fellow leaseholders is a vital first step.

www.leaseholdguidance.co.uk Solicitors | Surveyors | Accountants | Property Managers
Tel: 0207 428 1977 Presented by the Ringley Group