Does Setting Up Right To Manage Companies Help With Overpriced Service Charges? - By: Tim Bishop

If you feel oppressed by the way that your landlord runs and manages your block of flats there is something you can do about it. Under relatively new legislation groups of tenants living in flats have the right to manage their building and take this away from their landlord.

Before contacting a right to manage (RTM) solicitor, it is a good idea to learn a little first about the right to manage flats in general. RTM needs to be under the control of an RTM company which is incorporated with prescribed articles.

Don't get this mixed up with a normal company which has shareholders; right to manage companies are limited by guarantee with all leaseholders occupying the block being entitled to become members with individual liability limited to £1.

After November 2009 the law was changed so that RTM companies only needed one director. Nevertheless, it is advisable that you have 3+ on the board of directors.

These directors will not necessarily be leaseholders of the property but to maintain better control, it is a good idea that they have at least some interest or association with the property such as being a relative of one of the residents.

This is all very well, you might think, but what about the lurking hazard of complaint that the procedure is undemocratic. Well it is for this reason that many leaseholders in a block will aim for 2/3rds of tenants to agree to join the new right to manage company before an RTM claim notice can be issued. Unlike the statutory requirement of 50%.

Beyond this, you will need other outside support and definitely a solicitor who specialises in setting up right to manage companies.

A frequent question will be: is this going to be a long, drawn out process that takes years and endless meetings and form filling before being finalised? In other words, is it going to be worth it?

Once you have legally created your RTM company, the actual RTM process can begin. This begins by serving a statutory claim notice on the freeholder, which your RTM solicitor will do for you.

After this there is a fairly standard route to follow and your right to manage solicitor serves further notices and counter notices.

The process of setting up right manage companies can often be finalised within two months with the right to take over management following three months later.

In order to set up your own RTM company and more information about the whole process, get in touch with a specialist RTM solicitor.

About the Author

Tim Bishop is senior partner at Bonallack & Bishop, a firm of solicitors experienced in advising on the right to manage flats and right to manage companies. He is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 12 years and has plans for its continued development.

Article Directory Source: http://www.articlerich.com/profile/Tim-Bishop/62652

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