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A leaseholder contacted us with regards exercising the Right to Manage. The apartment block was managed by a nationwide property management company. The leaseholders were not satisfied with the service level provided and were also concerned by spiraling costs. The relationship between the leaseholders and the landlord’s managing agent had deteriorated and leaseholders were seeking legal advice to investigate options.
They decided that the most effective way forward was to take control of the management from the Landlord, and change agents. Initially, we met with about 9 flat owners and explained the RTM process and and management services. From a Right to Manage perspective, it was a fairly complex set-up. There are 2 blocks on the development and parts of the freehold development had been sold off to other landlords. There remained a shared access way, gardens and shared car park.
Our Legal & Compliance Director worked as a solicitor specialising in property law for 10 years before joining Pembroke PM. She oversees out all our RTM claims and is an expert in Right to Manage legislation. We knew exactly what the RTM Company was entitled to manage within the development. The RTM Claim Notice was carefully drafted and submitted to the Landlord.
The Landlord’s solicitor responded and requested numerous documents relating to the company and the methods we used for serving the notices on non members. They carried out a thorough examination of the claim. Once they were satisfied with the validity of the claim they acknowledged that the leaseholders had successfully acquired the Right to Manage.
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During the 3 month management handover period we sourced new contractors to carry out the maintenance of the building, grounds and services on site. We prepared a budget for approval by the directors. For the first time, the leaseholders gained an understanding of the service charge costs up front, and they could have their queries answered. In the first year of handover, Pembroke PM saved leaseholders £7000 compared to their service charge payments in the previous year.
The handover was challenging. The Landlord’s managing agent tried to resist giving up the management of the shared access-way and car park. Our Legal & Compliance Director liaised directly with the Landlord’s solicitor and their managing agent explaining the legal points and how they should be practically adopted. The Landlord has now relinquished control of the estate to the RTM company.
The Right to Manage is not just about securing the Right to Manage your building. By having Pembroke PM carry out the Right to Manage process, deal with the handover, and manage the development afterwards, clients benefit from that expertise to ensure the leaseholders do not lose out on any of their entitlements.
If you own a flat in a large block and think you may be entitled to the Right to Manage, please call us for a free consultation. We take care of the legal process, but we also understand how it needs to be implemented in practice at the time of handover. We may also be willing to carry out the Right to Manage for FREE