Through the Right to Manage (RTM), brought in under the 2002 Commonhold and Leasehold Reform Act, leaseholders can take control of their block from the freeholder, and decide how it is to be managed.
Only half of a block’s leaseholders are required to support the RTM process, and there is no need to prove incompetency on behalf of either the freeholder or managing agent, meaning it is a straightforward option for most blocks of flats.
However, new research by Urban Owners has revealed widespread ignorance in the area, with seven in ten leaseholders unaware of their right to take control through the RTM. This is despite the fact that only 31% are satisfied with the management of their property and less than a quarter (24.1%) feel that their managing agents’ service charges represent good value for money.
Furthermore, almost 40% (38.7%) of leaseholders surveyed believe they would be unable to make any reduction to their service charges if they were to take control of their block, when in reality each flat owner can save an average of £400 per year after taking control
Director Steve Wylie said:
“The Government brought in legislation eight years ago because it recognised that a huge number of leasehold flat owners were being ripped off by freeholders and their managing agents. This research shows, however, that many leaseholders are still suffering high charges and poor service from managing agents and are unaware of their power to take control. Our Block Administration Services are completely transparent, giving leaseholders full control over the management of their block without any hassle. They direct how their own money is spent and save money as a consequence.”
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