The right to manage finances

At a time when every pound is being made to stretch further than ever, it's vital we retain a solid grip of how and where our money is spent. But what of leaseholders whose decisions are taken out of their hands by their landlords and management companies' According to Robert Plant, Commercial Property Partner at leading law firm Tolhurst Fisher, there is a simple solution that can pay for itself within just a year.

He commented, "The Right to Manage means tenants of residential flats can take the management of a block away from the landlord. This gives them full control over key decisions, with real cost saving potential, which could prove vital in the current economic climate. It is also a right the landlord cannot refuse.

"Compared to buying the freehold outright, Right to Manage offers all the short to medium term benefits, but at a fraction of the cost. All it takes is the backing of 50% of the block's qualifying residents and the formation of a Right to Manage company, of which they will be members.

"From there, it is an easy process but one that is critical to get 100% correct - otherwise the door is left open for the landlord to decline, with the tenants left to foot fruitless legal costs. This is why it's important to choose a solicitor with specialist knowledge in this field."

Under the Right to Manage, tenants can employ their own management company or take full responsibility for the building's upkeep themselves. Either way, there is a wide range of areas where costs can be driven down. This includes insurance, landscaping, repairs, maintenance and any other contracts, plus the ability to get their hands on any "sinking" or reserve fund set aside by the landlord for a rainy day.

The Right to Manage is also a great selling factor for the flats, with any new owner automatically becoming part of the management company. In some cases it could even make the difference whether the property sells or not, simply because people will refuse to live under certain notorious management companies. With the decisions put in their hands, they enjoy the peace of mind that everything is maintained adequately.

 

Tolhurst Fisher is a leading law enfranchisement law practice and a member of the Association of Leasehold Enfranchisement Practitioners, with extensive specialist knowledge of all aspects of lease extension. This includes experience in representing clients throughout the right to manage process.