Right To Manage
The Right To Manage enables you to take control management of your block away from your freeholder. With our help it is a simple, stress free process. In order to undergo the Right To Manage, you’ll have to get the support of 50% of your fellow homeowners, and your block will have to qualify under the legislated criteria.
Taking control with the Right To Manage is generally less expensive than enfranchisement as you’re not required to purchase the freehold.
If you use our service, we’ll ease your block through every step of the Right To Manage process – from undertaking due dilligence (to ensure that your block and homeowners qualify), to creating a Right To Manage company, to serving notices to your freeholder and finally informing the homeowners of their responsibilities upon takeover.
We charge a fee of £30 + VAT per unit for administering the entire Right To Manage process from beginning to end, with a minimum fee of £450 + VAT per block.
Note: Our service includes due dilligence i.e. checking if your block and the homeowners qualify. If you are looking at competitors for this service ensure you ask if their price includes due dilligence. Without it, you can end up with expensive liabilities if you end up at tribunal for the wrong reasons!!
Enfranchisement is the process of buying the freehold of your block from your landlord. Although more expensive than acquiring the Right to Manage, enfranchisement is beneficial in that it eliminates ground rent payments and potentially increases the value of your property.
As with the Right to Manage, if the qualification criteria are met, the landlord has no choice but to sell the freehold. From here there are legal steps to follow in order to agree a price for the freehold. Ultimately a company is created that owns the freehold, with the homeowners as shareholders and therefore in control of their block management.
As previously mentioned, the process you have to follow is dictated by law, and you will need to employ a surveyor in order to value the freehold and to help you to determine the offer you make to your landlord. You will also have to employ a solicitor to undertake all of the legal work.
Since there are usually large sums of money involved in the process, it may be beneficial to get professional assistance in bringing you and your fellow homeowners in the block together, agreeing the actions that will follow and in helping to determine the extent of the work and funding required.
We can manage the process on your behalf from day one to ensure that you follow the legislated steps correctly, and as with the Right to Manage, advise you on your block management options on the completion of your enfranchisement.
We charge £75 + VAT per unit (with a minimum charge of £750 + VAT for any block) to administer the enfranchisement process. This includes our cost of creating a residents’ management company for your block.