Tenants' Right to Manage

70% of Leaseholders unaware of their Right to Manage

A report in the Telegraph last week suggested that 7 out of 10 Leaseholders surveyed by property management firm Urban Owners were unaware of their ability to manage their own block and the options available to enable them to do so, despite being dissatisfied with their current management arrangements.

The report suggested that Leaseholders could make significant savings by taking on their own building management and cutting out commissions paid to agents and landlords on insurance and maintenance contracts and ensuring that works provide value for money.

There are a number of ways in which Leaseholders can take control of their own destiny in respect if Block Management.

The first is the Right to Manage. This is a no-fault process, so you do not have to prove that your current managing agents or Landlord are doing a bad job. You must have the support of at least 50% of the flats in your building. The process involves the service of notices in specified form and at specifies intervals on the other lessees and the landlord. The landlord may only object if your do not meet the criteria set down in the Commonhold and Leasehold Reform Act 2002. He cannot object simply on grounds that he wants to retain management.

The second way to take control is to compulsorily buy the freehold from the landlord. Again, you will need at least 50% of the flats in the building to support such a purchase and you  will need to obtain a valuation before you begin the process to see whether it is an affordable option.

It is not only flat owners that can benefit from the purchase of a freehold. Residents of houses which are held on long leases may also buy their freehold. Again, it is advisable to obtain a valuation before you begin.

If you want to find out more about any of the above options including whether your building or block would qualify then please call or email Gary Scott in our Property Litigation department.