Right to Manage Acquisition Service

Our area of expertise

Right to Manage Acquisition Service

The Right To Manage process empowers the collective of leaseholders to take control of the site. The leaseholders form a company that becomes responsible for the repairs, maintenance and supply of contractors, services and insurances at the site. The leaseholders appoint a managing agent who directly serves their interests.

The end result is that those who pay the service charges at the site are entrusted to set their own annual service charge budget. The building becomes a more attractive place to live and a more valuable investment as leaseholders are no longer at the mercy of an absent freeholder who may be enjoying healthy commissions on insurance, electricity and maintenance contracts.

  • Initiative handles full Right To Manage lifecycle from delivery of Notices to defending Claims.
  • Appoint an agent who serves your interests, not those of an absent freeholder.
  • Take control of your property, ensure the covenants of the lease are upheld.
  • Experience of winning at the First-Tier Tribunal (Property Chamber).
  • Increased value and control for service charge monies.
  • Expert guidance without the burden of lofty legal fees.
  • Reduce your buildings insurance premium by £000’s!
Right to Manage
Empowering
Legal Structures
Our Process
Our Experience
Our Success

Right To Manage

Initiative Property Management has successfully orchestrated the Right To Manage at 18 different buildings, ranging in size from 4 units to 71 units.

We have vast experience in dealing with obstructive freeholders/solicitors during this process and on every occasion we have claimed a successful result for the RTM Company.

Empowering Lease Holders

If a building is built by a developer and no Residents’ Management Company is implemented to represent the leaseholders at that stage, the managing agent is instructed by the corporate freeholder.

Leaseholders are not party to this contract and typically experience a poor, unresponsive service from the agent. The Right To Manage (RTM) solution is perfect for leaseholders who find themselves in this predicament, suffering from high service charges and balancing charges.

Legal Structures

In this model, the freeholder is legally entitled to charge a commission on the buildings insurance premium and the communal electricity supply. We have seen a large number of instances where, having purchased their flat in good faith, flat owners have become frustrated and disillusioned at having no influence over the way service charges are spent. The Agent, spending money without reference to those who pay the service charge bills, has no real incentive so seek out good value for money from the contracts and services being administered at the site.

We are usually contacted by 2-3 disgruntled leaseholders initially to ask us what can be done. Dependent on the size of the building, we then invite all leaseholders to a free, no obligation meeting to discuss the Right To Manage process. At the meeting, we explain the benefits and potential costs. When flat owners realise they have the right to exert a much greater influence over their homes and investments for a relatively low sum of money, they are usually very interested in taking part.

Our RTM Process

In order to be eligible for the Right To Manage, 50% of the leaseholders must become members of the RTM Company. Before money is committed to the incorporation of a Right To Manage limited company, we ensure that at least 50% of the leaseholders are interested in proceeding.

With no fees required in advance, Initiative then incorporates the Company according to the prescribed Articles of Association, acting as Company Secretary. We then encourage leaseholders to become members of the Company, on behalf of the RTM directors.

A series of notices are sent out in order to satisfy the legislative requirements. Once the RTM Company has the requisite membership Initiative will administer the service of the claim on the freeholder. The freeholder will typically appoint a legal representative to verify or perhaps defend the claim. Initiative handles all communication on behalf of the RTM Company during this process.

Our RTM Experience

In 17 of the 18 RTM Claims Initiative has administered, the claim has been upheld without reference to the First-Tier Tribunal (Property Chamber).

1 claim has been referred to the Tribunal due to an obstructive freeholder.

The claim was successfully upheld at the Tribunal and the leaseholders at that 10 unit building are now enjoying the liberation of the Right To Manage.

Our RTM Success

The reaction of leaseholders once the Right To Manage is achieved is one of excitement and commitment.

Some leaseholders wish to become directors, facing off to the agent regularly throughout the year to ensure the good management of the site. Other leaseholders are content to watch from afar, attending an annual meeting perhaps, while they watch their service charges represent increased value for money.

Initiative encourages “RTM blocks” to begin to plan for the future rather than the reactive, unresponsive management of the past.

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Contacts

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HEAD OFFICE

1st Floor, Fairview House,
Hinton Road, Bournemouth,
Dorset BH1 2EE

Phone: +44 (0)1202 309 569
Email: contact@initiative-pm.com

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