Right to Manage

Right To Manage

Under the Commonhold and Leasehold Reform Act 2002 the Right To Manage came into force at the end of September 2003 and Commonhold was introduced in September 2004.

Right To Manage gives qualifying lessees the right to take over the management of their building without having to prove that the freeholder is at fault. It is not a step lessees should take lightly as responsibilities come with the powers, including an ongoing responsibility to the freeholder.

There are prescribed qualifying rules and procedures that have to be strictly followed. In addition, qualifying lessees through their RTM company (a special company that is limited by guarantee) will need to thoroughly research the current status of the property, eg. arrears, ongoing building works etc, and its future needs eg. day-to-day management, cash flow, major cyclical maintenance etc.

MBC currently manages two residential block who have chosen the Right to Manage avenue. Please read the publication from ARMA below.