Is Setting Up A Right To Manage Company A Difficult Process?
When considering retirement money is extremely important. You do not want to find yourself in your nice new retirement flat paying out a ridiculous amount of service charge money to an unscrupulous landlord whom is slap dash with maintenance.
If you are living in a leasehold retirement flat and feeling stressed by service problems, it may be that a right to manage company (or RTM company) is needed. Are the problems included in what is covered by the service charge and they are not being dealt with in line with the right standard? Are you paying a high fee and wonder where on earth it goes?
Well, you may be interested to know that RTM exists for retirement flats and can be a simple process, if you consult a lawyer who specialises in setting up right to manage companies. You and your felllow tenants must want to take on another RTM management company. Self-management is not advisable as there are many statutory obligations that need to be understood and followed.
The collective owners of the flats will need to select a management company; this is not as difficult as it sounds. Your right to manage lawyer will guide you through this procedure and the new company will be decided by your own appointed committee. This means from the start, you have control - without the stress.
You may shudder at the thought of the legal fees but speak to your right to manage lawyer; it is likely this will be offset by lowered service costs. It is not always necessary to pay the landlord a compensation fee and certain solicitors may offer a retirement scheme for the Right to Manage and this is worth looking into. Most blocks of retirement flats qualify for RTM although their are requirements to be met, however those which are owned by the local authority do not:
- RTM is applicable to leasehold owners of flats, not to houses or bungalows.
- an RTM claim must be submitted for each block in an estate.
- legislative qualifications re the building and the applicants must be satisfied.
- the building must be detached or part of a structurally independent building.
- the lease should have been originally granted for 21 years or more.
- at least two thirds of the flats are leased to qualifying tenants.
A lawyer whom specialises in right to manage companies will have a good knowledge in this are of the law. He may think it a good idea for him to visit all the tenants and do a free overview talk about the process and allow them to ask him questions. Why not ask?
If you are living in a leasehold retirement flat and feeling stressed by service problems, it may be that a right to manage company (or RTM company) is needed. Are the problems included in what is covered by the service charge and they are not being dealt with in line with the right standard? Are you paying a high fee and wonder where on earth it goes?
Well, you may be interested to know that RTM exists for retirement flats and can be a simple process, if you consult a lawyer who specialises in setting up right to manage companies. You and your felllow tenants must want to take on another RTM management company. Self-management is not advisable as there are many statutory obligations that need to be understood and followed.
The collective owners of the flats will need to select a management company; this is not as difficult as it sounds. Your right to manage lawyer will guide you through this procedure and the new company will be decided by your own appointed committee. This means from the start, you have control - without the stress.
You may shudder at the thought of the legal fees but speak to your right to manage lawyer; it is likely this will be offset by lowered service costs. It is not always necessary to pay the landlord a compensation fee and certain solicitors may offer a retirement scheme for the Right to Manage and this is worth looking into. Most blocks of retirement flats qualify for RTM although their are requirements to be met, however those which are owned by the local authority do not:
- RTM is applicable to leasehold owners of flats, not to houses or bungalows.
- an RTM claim must be submitted for each block in an estate.
- legislative qualifications re the building and the applicants must be satisfied.
- the building must be detached or part of a structurally independent building.
- the lease should have been originally granted for 21 years or more.
- at least two thirds of the flats are leased to qualifying tenants.
A lawyer whom specialises in right to manage companies will have a good knowledge in this are of the law. He may think it a good idea for him to visit all the tenants and do a free overview talk about the process and allow them to ask him questions. Why not ask?
Source...