RTM company that did not take over?
Hi, my apartment block has a right to manage company set up with dormant accounts filed each year but we have never taken over. The company is ‘live’ and we are all shareholders.
I’m at my wits end with the management – ‘he’ works for the freeholder (who happens to be a billionaire and on the rogue landlord list can you believe) all enquiries go to the one man with it seems no back up staff, he goes months with no response!
Anyway, question is can we just issue a notice to the landlord and activate our right to manage or do we have to go through the process again.
I am a director of 3 other RTM companies and well aware of the shortcomings of the management companies but they cannot be worse than this.
Any advice would be appreciated,
Harlequin
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Member Since June 2013 - Comments: 1121
10:31 AM, 15th April 2024, About 2 years ago
It sounds like the freeholders tame poodle may have been put in place to thwart RTM.
If RTM was attained there would have been a ” date of acquisition”- the date on which the RTM should have had management transferred.
If it didn’t go ahead it was either because (1)the landlord counter- noticed and the RTM didn’t go to Tribunal, or(2) freeholder accepted the claim notice, date of acquisition came and went, and management wasn’t transferred- or (3) the RTM lost at Tribunal.
You need to know what it was before you can take next steps.
Member Since June 2013 - Comments: 1121
1:01 PM, 15th April 2024, About 2 years ago
Forgot – (4) – the RTM was formed, but RTM was not applied for due to funding issues. If that’s the case have a word with Cannonbury or the RTMF who will guide you through it.
Member Since October 2022 - Comments: 402
3:54 PM, 15th April 2024, About 2 years ago
How common does this happen that the management Co.and transfer of the landlord interest to the management co. (RTM /RMC) does not occur.
I would check where the service charge only due under provisions of the lease(s) is paid, and the GR.
If sc not paid into a section 42 LTA 87 trust/client account in name of man.co. with written confirmation by the bank and annual audited accounts provided as proof then the money not tax exempt is active trading and man. co. must declare for tax purposes. This is allegedly embezzlement of Landlords money.
Member Since May 2014 - Comments: 271 - Articles: 2
8:41 PM, 15th April 2024, About 2 years ago
Reply to the comment left by Fed Up Landlord at 15/04/2024 – 10:31
The leaseholders did not take over – so sounds as though it lapsed. It was before my time, there was a row over the use of the sinking fund to repair pavement lights – the person who had been very active in acquiring the RTM backed down and so said poodle remained in place, I know it did not go to a tribunal.
We do have concerns over the service charge as we are not getting budgets or accounts – I asked a few months ago and was sent them – there was an underspend for 3 years that no one was told about and we are told it will form the basis of the sinking fund – they didn’t ask and we would have said no as their history with money is not great.
Thank you.