Please note that the information given here is intended only as a guide and not a legal interpretation.

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So what is the Legislation that makes it possible for the management of our estate to be transferred?

Part 2, Chapter 1 of the Commonhold and Leasehold Reform Act 2002

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What does the Legislation do for us? The Legislation provides for a process that allows Leaseholders to nominate a new firm to take over the management. That takeover is done by setting up a special RTM Company of which you become a member. The RTM Company then holds annual and special meetings of its members to update them on what has been happening on the estate and decide what improvements they would like. The Landlord becomes (if he chooses to do so) a single member with equal rights to each of the other members.

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So what will it cost me?

As Professional Managing Agents we are keen to manage your estate and therefore encourage you to take this process. In exchange for the opportunity will absorb the reasonable cost of our professional work to achieve this. This leaves just the cost of incidentals such as setting up the RTM Company, postage and stationery, which may be as little as £15 to £30 per flat depending on the number of flat owners who participate. Plus the costs incurred by the current managing companies solicitors, once the process is completed. As long as there are no grounds for refusal to transfer the management within the provisions of the Act, we will provide a complete package, initiating and activating the whole legal process and takeover, then managing accordingly.

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What special reasons do you know of that might incur additional costs? It is possible under the Act for the Landlord to refuse to hand over the management for specific reasons. In such circumstances you will be able to consider whether to contest the Landlords refusal. The Landlord has only three grounds to refuse: Either the building does not qualify or the RTM Company does not comply with the legislative requirements or the RTM Company has insufficient participating tenants who qualify (50%)

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So what must the building be to qualify?

The building must be self-contained (or if part of another building, be capable of being redeveloped independently), the right relates to a definable individual building (whether attached or otherwise) but with its own internal services

It must include at least two flats, at least two thirds of which have leases that were originally longer than 21 years and although it can be part-commercial, the commercial part must not exceed 25% of the total floor area.
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Does it matter that some of the Leaseholders own more than one property on the Estates?
There is no limit on the number of flats which can be owned by one person.
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What has the Company to be, to qualify?
The process can only be exercised by a 'right to manage' company and the members of the RTM company must comprise a sufficient number of Flat owners with long leases (see above) of at least 50% of the flats in the building.
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There are lots of blocks of flats on our estate, all managed together, what happens then?

Provided that all the requirements are met, each block has to be processed separately but it makes sense for all the processes to be done at the same time.
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Is there an independent source where I can find out more about this?

Yes, The Leasehold Advisory Service (LEASE) provides free advice on the law affecting residential long leasehold property and Commonhold.

Go to http://www.lease-advice.org/rtmmain.htm or Address: 31 Worship Street, London, EC2A 2DX Telephone: 0845 345 1993 Fax: 020 7374 5373 Email: info@lease-advice.org

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How long does all this take?

Initially there is research to identify the full details of the estate. The longest time taken can be the locating and contacting of all the Flatowners and inviting them to become members; there is a Statutory way this has to be done but often people want to find out more information before adding their name to the process. Once the preliminaries are done the process is much defined. The claim may not be served until 14 days after the service of the Notice Inviting Participation, but once it is served on the Landlord he has one month to respond. However, the claim itself will specify a date of handover not less than 4 months after the claim.

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Will there be other problems?

No process is without its unforeseeable problems but it is very likely that the present Managing Agent will be slow and unhelpful in handing over all the documents and money in its possession as well as providing proper accounting for its management during previous tenure. SWA have a great deal of experience in this process and will make provision for such difficulties and keeping members advised as necessary.
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Why choose SWA Chartered Surveyors?

SWA are a firm of Chartered Surveyors who specialise in residential block management and assisting residents to gain control of their estates. We have many years of experience in such work and administer estates on behalf of residents over a wide area of the South East including London, Essex and Hertfordshire. For more details see: AboutUs And: ManagementServices

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But don't I need an Estate Manager who is just around the corner to me?

Most Estates in the UK are managed from a distance and there is no advantage to being close to your manager. If you live in London or a similar city area, using local managers is a definite disadvantage since their higher overheads are passed on to you. We have a number of estates within a few minutes of our office but have found no special advantage to the situation. Most work undertaken by us as estate managers is done by the use of modern office facilities and communication by Telephone, Fax and Email. What is most important is the staff that carry out the work.

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What does 'Participating Tenant' mean and if I become one how will it affect me?

If you participate you become a member in an RTM Company limited by guarantee with no shares. The Company is run like any other Company except that it is non profit making and exists for the sole purpose of estate management as provided in the terms of the Lease. It takes over most of the responsibilities and liabilities of the Landlord.

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Does the Company take over responsibity for insuring the block?

Yes, the Act transfers responsibility for 'Management Functions' which it describes as 'services, repairs, maintenance, improvements, insurance and management. There are also supplementary functions and those relating to approvals as well as a number of other provisions found in Part 2 of the Act, Chapter 1 Sections 95 to 103.

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