If you and your fellow leaseholders are looking for more control over how your development is managed, then Right to Manage could be a cost-effective option, as Brady Solicitors explain.
Right to Manage is a legal right that enables leaseholders to acquire the right to take over the management of the freehold. Unlike collective enfranchisement, Right to Manage does not involve buying the freehold itself, which keeps costs down.
What are the costs involved in Right to Manage?
RTM is often considered the less expensive option because the leaseholders are only responsible for their legal costs together with the freeholder’s reasonable legal costs.
The costs will cover making the RTM claim and a set-up fee for the RTM company itself. These costs will vary depending on the number of flats, but leaseholders should expect to pay upwards of £200 each.
If you face a challenge from the freeholder, you can expect the cost of your Right to Manage application to rise by £3,000 to £5,000 to cover the associated legal costs.
It is worth using a specialist Right to Manage solicitor to make your application, as the costs of Right to Manage will escalate significantly if the freeholder can oppose your application on the grounds of something that was technically incorrect during the process.
Right to Manage is an affordable option for most leaseholders but it is important to be aware of the costs and to understand how to keep them low – for example by using expert RTM solicitors who can minimise the expensive risk of a challenge by the freeholder.