The Right to Manage or not?

by Readers Question

9:41 AM, 23rd October 2018
About 4 weeks ago

The Right to Manage or not?

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The Right to Manage or not?

I simply would like to know the best way to change the management company of a small block of 3 flats? I am one owner and and the other owner owns the other two flats.

We don’t want to manage the block ourselves, but we do want to get rid of the inept management company who we pay monthly to insure and sort the general up keep of the building. They have not done this at all for 8 years to our satisfaction so we have now eventually had enough and would like to know how we change them for a new block management company.

Yes I have a list as long as my arm to explain why we want them gone, it’s not just on a whim.

Many thanks

Alex



Comments

RobertHDean

11:24 AM, 23rd October 2018
About 4 weeks ago

do you have a two or three party lease? is the landlord responsible for maintaining and insuring the premises?

David Price

11:27 AM, 23rd October 2018
About 4 weeks ago

Set up a Right to Manage company, it's a long winded process but there is plenty of help to be had on the L.E.A.S.E website. I did this for my block of 100 flats some fifteen years ago and immediately the insurance premium went down from £38,000 to £5,000.
If possible purchase the freehold, when the freeholder realises that his cash cow of service charges has gone he may well be anxious to sell.
Insist on audited accounts and ask (demand would be more appropriate a term) to see the receipts for all work undertaken. Check that the service charges have been demanded properly, for if they have not you have no obligation to pay.

Mark Weedon

12:08 PM, 23rd October 2018
About 4 weeks ago

It might be worth trying to contact the freeholder directly to see if he would sell or if he would agree to another agent being appointed. Sometimes freeholders just leave the managment companies to get on with it.
We had a very similar situation. When we spoke to the freeholders they were happy to sell to us. It turns out the management company was doing as it pleased and linning its own pockets.
It could save you a lot of time and hassle.
If not an RTM is probably best.
Good luck.

Ms Leaseholder

13:04 PM, 23rd October 2018
About 4 weeks ago

Although you are in the process of getting rid of the incompetent fools (lucky you) please would you complete the consultation about leasehold issues - even if it's only to list the issues that you have had with your managing agents.
The full document is the first link, but I have posted the relevant information to complete the form, below that.

https://s3-eu-west-2.amazonaws.com/lawcom-prod-storage-11jsxou24uy7q/uploads/2018/07/Consultation-Paper-Summary.pdf

Responding to the Consultation Paper
1.4 The Consultation Paper is available online at http://www.lawcom.gov.uk/project/leaseholdenfranchisement/.
The deadline for responses is 20 November 2018.
1.5 Comments may be sent to us using the online response form at
http://www.lawcom.gov.uk/project/leasehold-enfranchisement/. Where possible, it would be helpful if this form was used.
1.6 Alternatively, comments may be sent:
(1) by email to propertyandtrust@lawcommission.gsi.gov.uk; or
(2) by post to Leasehold Enfranchisement Team, Law Commission, 1st Floor, Tower, 52 Queen Anne Gate, London, SW1H 9AG.
1.7 Our website also includes a short survey which we invite individual leaseholders to complete in order to share with us their experiences of the enfranchisement process.
1.8 For further information about how the Law Commission conducts its consultations, and our policy on the confidentiality of consultees' responses, please see page iii - iv of the
Consultation Paper.

Alex Russell

15:18 PM, 24th October 2018
About 3 weeks ago

Reply to the comment left by RobertHDean at 23/10/2018 - 11:24
The lease is for the 3 apartments. Basically the freeholder just takes the ground rent and does nothing else and then we have a company that managers the building. I don't think the freeholder has any contact with the management company because they are in Cornwall and the property in Liverpool. The management company was in place before the freeholder bought the freehold.

Alex Russell

15:23 PM, 24th October 2018
About 3 weeks ago

Reply to the comment left by Mark Weedon at 23/10/2018 - 12:08
I have tried to call the freeholder but they are one of those companies that hides behind a wall when it comes to phone or emails, I think a hand written letter it will have to be.
I don't want to buy the freehold, I am trying to sell the flat, but I have an offer but only if we change the management company because they can see they have not done what they are paid to do.
I think the freehold was sold after this company was already appointed so the freeholder has no interest.

Alex Russell

15:52 PM, 24th October 2018
About 3 weeks ago

Reply to the comment left by Alex Russell at 24/10/2018 - 15:23
I have spoken to the Freeholder and he has no control over the management company, they are basically employed by us the lease holders of the flats. So does that mean that we are going to have to go down the 'Right to Manage' road or can we just give them notice and change companies?

Mark Weedon

16:41 PM, 24th October 2018
About 3 weeks ago

I imagine the lease gives the freeholder the right to appoint whoever he chooses to manage the property. It sounds to me as it is convenient excuse and he has no interest. The RTM will put the lessees in control of the management.

Ms Leaseholder

14:51 PM, 25th October 2018
About 3 weeks ago

Sounds like he isn't at all interested - bonus! I'd definitely go through a RTM


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