Right To Manage (RTM) – Advice Please?

by Readers Question

10:54 AM, 11th May 2015
About 4 years ago

Right To Manage (RTM) – Advice Please?

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Right To Manage (RTM) – Advice Please?

I am one of 5 leaseholders in a small block of flats where the freeholder has the right to appoint the managing agents. The freeholder has agreed a fee of nearly £300 per flat to manage the building which has no lift nor a car park and I am told we have to lump it. I can easily get over half of the leaseholders to agree to set up a RTM company.  Right To Manage (RTM)

However, my experience of trying to set up a RTM company on a larger block has put me off trying to set up a RTM company on this small block. The biggest issue was the fees the solicitors wanted to set up the RTM company.

Has anyone got any experience of being involved in setting up a RTM company and can anyone recommend a decent solicitor who knows what they are doing?

Thanks

Jon Bourne



Comments

Advance Block Management

12:50 PM, 11th May 2015
About 4 years ago

Dear Mr Bourne,

Forming a RTM would be the best move for the development. The freeholder's charge of £300- per flat is expensive and other high may follow too. Such as Section 20 charges, comissions etc.

The solicitor fees shouldn't be much compared to the long term savings you will make and gaining control on the management of the block.

All the best.

Advance

Mandy Thomson

13:09 PM, 11th May 2015
About 4 years ago

Hi Jon

I'm afraid my experience of RTM in a similar sized block is a very negative one, firstly because of the considerable expense involved in maintenance, and secondly, although we have had an efficient and organised manager with book keeping skills, she is not trained in block management, which I am learning the hard way is a discipline in its own right, thanks to the complex legislation around leasehold titles.

I won't go into too much detail, but the issues we've had have been lack of knowledge of building and structural issues, leading to short cuts being taken with building works, necessitating expensive repairs to put it right; being small, we have been unable to attract the best builders and tradesmen; a difficult trust member who drags her feet over paying regular maintenance, let alone pay for additional works or an increase in charges (the fact that the proper legal procedures weren't followed when requesting payment has provided this person with a handy defence against paying), leading to the trust running short of funds and individuals having to pay thousands out of their own pockets for large building works to common parts.

There is of course the option to appoint our own property management company, but this is extremely expensive.

I own another flat in a block that's owned by a freeholder and managed by a property company. Although I do get hassled for some additional expenses, my maintenance costs are much lower overall as it's being properly managed, and when there is a problem, it's such a relief to know it will be taken care of!

Karen Peel

16:21 PM, 11th May 2015
About 4 years ago

Hi Jon

I organised a RTM on a block of 137 so it can be done successfully. I have also helped quite a few other developments get RTM.

If you would like some hints and tips, please message me your email address via 118 and I will be happy to pass on what I have learnt the hard way, free of charge!

It doesn't have to be a nightmare with a bit of planning..

Regards

Karen

Mark Alexander

16:55 PM, 11th May 2015
About 4 years ago

Hi Karen

Why not share what you have learned from your experiences via this discussion thread?

That way, thousands of people may benefit from your experience as opposed to just one.
.

Karen Peel

16:59 PM, 11th May 2015
About 4 years ago

I will Mark.

Karen

Nick Bignell

11:23 AM, 12th May 2015
About 4 years ago

Dear Jon,
The RTMF http://www.rtmf.org.uk has assisted over 270 blocks exercise Right to Manage in both extremely large developments and smaller buildings like yours. I agree that it doesn't have to be a nightmare experience, and at the very least you will have the freedom to choose who manages your building.
ATB
Nick

Nick Bignell

11:43 AM, 12th May 2015
About 4 years ago

The Right to Manage Federation provide RTM services to leaseholders like yourself. To date assisting more than 270 blocks through the Right to Manage process, including the 967 unit development at Century Wharf, Cardiff, and the 422 unit Metro Central Heights building in Elephant and Castle, and many blocks similar to your own.

jonney

15:58 PM, 12th May 2015
About 4 years ago

Many thanks Nick that's just what I was looking for. Cheers. Jon

Regalty Estates

17:07 PM, 12th May 2015
About 4 years ago

Hi There! Right to Manage is a VERY easy process - our in-house legal team could give you free advice on the best way to proceed. Give us a shout if you need any free advice by dropping me an email at alan@regalty-estates.co.uk - happy to help in any way I can!

Mark Alexander

17:11 PM, 12th May 2015
About 4 years ago

On this occasion, as you are a new member, I have allowed this comment to slip through the net. However, please note that it contravene's our House Rules - please see >>> http://www.property118.com/house-rules-business-sponsorship/
.

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