Last edited 18 Dec 2020

Right to manage for leaseholders

The Commonhold and Leasehold Reform Act 2002 introduced the ability for leaseholders to transfer the management of flats from the landlord to a right to manage company, set up by the leaseholders. The ownership of the building remains with the landlord.

For leaseholders to take over management of their property, the property must have the following qualifying features:

It is not necessary for leaseholders to obtain the landlord’s permission in order to transfer the management and it is not necessary for there to have been any problems with the way the property was managed by the landlord.

To exercise the right to manage, a formal notice needs to be served on the landlord. The management will then transfer to the right to manage company. The landlord is eligible to become a member of the right to manage company.

It is possible for the landlord to dispute the application by serving a counter-notice to the right to manage company. This must outline the details of why the landlord does not think the company is entitled to management. This can include:

The right to manage company can apply to the Leasehold Valuation Tribunal within 2 months of the counter-notice and the tribunal will then decide if the company can manage the building.

The right to manage company will be responsible for:

It is not possible for the right to manage company to stop maintaining the building as a way of saving money.

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