A leaseholder’s right to have control of or input into how their property is managed is a right that many are either unaware of or are unable to exercise.
The landlord (freeholder) under the terms of the lease is in all but a few instances responsible for managing a property and will usually appoint a managing agent to undertake this function on their behalf. In a large number of cases, the freehold of the building is vested in a company which the leaseholder’s own a share of and therefore have a say in the management of their property. Such companies rely on a few leaseholders to step forward as directors to run the company and appoint managing agents. Leaseholders/shareholders will meet annually at an AGM to appoint those directors and agree to the appointment of managing agent, accountants etc.
For many this is not the case and they find the freehold of their property is owned by a third party with little interest in the property save for the collection of the ground rent and placing the insurance from which a commission is usually earnt. Freeholds are bought as investments and there are many investment funds, which are now buying up freeholds, particularly from developers on completion of the disposal of the flats in the new development.
Those leaseholders that feel that their property is not being managed how they would like having rights, which are simple to effect. The right to manage is a no fault right to acquire the management of your property from your freeholder. It requires a majority of the leaseholders in any property to form and join an RTM Company which can be bought off the internet for less than £100 and then serve statutory notice of their wish to take over the management against the freeholder who has no grounds to object except if there is an error in the administration process.
It is therefore important to take professional advice from a solicitor or a managing agent who specialises in this field and has the necessary knowledge and experience.
Once the right has been acquired, it is then the job of the members of the RTM company to find themselves a new managing agent and take control of the management of their property with the professional assistance of a suitably qualified management company. There is another grey area with an ever – increasing number of unqualified firms offering a management service. Look for an agent who is a member of either the RICS or ARMA and who complies with The Code of Management Practice, which is adopted in law and the widely accepted reference guide for good practice in the industry.
It is easy to complain about your landlord or your agent but remember you have no power to do something about it if you choose. For advice and information please do not hesitate to contact myself or any of the professional organisations listed below.
Peter Dack FRICS
Director
