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Mon 25 Feb 2019

An Update on the Law Commission Consultation on Right to Manage

An Update on the Law Commission Consultation on Right to Manage

Consultation Paper

The right to manage (“RTM”) was introduced to give leaseholders control over the management of their buildings.  Leaseholders can set up an RTM company, which can then acquire the landlord’s management functions. Once the transfer occurs, the leaseholders become responsible for things such as collecting and managing the service charge and the upkeep of communal areas.

What’s the problem?

It is apparent that there are numerous problems with the existing law.  The Law Commission as part of its 13th programme of review has been tasked with reviewing the existing RTM legislation and providing proposals for reform.  Some of these proposals include:

  • relaxing the qualifying criteria, so that leasehold houses, and buildings with more than 25% non-residential space, could qualify for the RTM;
  • permitting multi-building RTM on estates;
  • reducing the number of notices that leaseholders must serve, and giving the tribunal the power to waive procedural mistakes;
  • setting out clearer rules for the transfer of information about management functions, and for the management of property which is not exclusive to the premises claiming the RTM; and
  • requiring each party to bear its own costs of any tribunal action, and exploring options for the landlord’s non-litigation costs.

 

Consultation events

The Law Commission has been holding a number of consultation events across England and Wales. The events seek to encourage discussion amongst those interested in the RTM to help shape the final recommendations for reform.

Yashmin Mistry, Partner and Head of the Property Practice Group was invited to sit as an expert on the panel at the Law Commissions symposium event held on 12th February 2019.

The Law Commission’s consultation will be open until 30th April 2019.

If you are involved with RTM or have views on how the existing framework can be improved, comments may be sent to the Law Commission using the online form, accessible here.

Alternatively, comments may be sent:

  • By email to rtm@lawcommission.gov.uk.
  • By post to Right to Manage Team, Law Commission, 1st Floor, Tower, 52 Queen’s Anne Gate, London, SW1H 9AG.

 

For more information on the consultation visit the Law Commission’s website - https://www.lawcom.gov.uk/project/right-to-manage/ or contact Yashmin Mistry – Tel: 0207 644 7294 or email: ymistry@jpclaw.co.uk

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