Right to Manage, or RTM as it is also known, is the process where long leaseholders of flats can take over the responsibilities for management functions of their block from either landlords and/or the existing managing agents, on a 'no fault' basis.
There are problems with the system as it currently stands in relation to costs, legal technicality and time frames to complete the process.
The Law Commission has identified such problems and the fact that change is needed. The Commission have been working on developing proposals to make the RTM process more user-friendly, which would assist both leaseholder and landlord.
The potential reforms are: expanding the RTM criteria so leasehold houses also can exercise the right; permitting multi-block RTM claims; the removal of commercial space restrictions; reducing the amount of notices to be served by leaseholders; introducing a statutory timetable (like those seen for lease extensions and collective enfranchisement claims); refining costs; and allowing the tribunals exclusive jurisdiction when disputes occur (currently this is split between tribunals and the courts).
Here at Dutton Gregory we are keeping our ears to the ground for any further progress with the amendments to the current process. If you are considering exercising your RTM as leaseholders, or have been served with a RTM notice as a landlord, or just have any questions in relation to the process, contact us and we will be happy to guide you through the current legislation.
The Law Commission has detailed a series of proposals with the intention of making the current right-to-manage setup quicker and easier to use.