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The Commonhold and Leasehold Reform Act 2002 provides qualifying tenants with an alternative to purchasing the freehold that is the right to manage their building through a Right to Manage (RTM) company. In the main, the RTM will acquire responsibility for repairs, maintenance, insurance and services.
There is no premium payable and by comparison with other procedures the overall associated cost is low. Nonetheless, as managers of the building, the RTM company will have to comply with all the statutory and lease obligations as well as run the company amongst other things. Therefore, there is a lot to consider before deciding whether RTM is the most suitable option and we advise you seek professional advice before starting the process.
As with procedures under the 1993 Act, the process is started by qualifying tenants serving a formal notice. This notice has a contractual effect and triggers a strict statutory timetable and liability for the landlord’s costs. Therefore, we advise you seek professional advice before starting the process.
For further information please contact:
Andy Finkel (Harrow) on 020 8422 5678