10th March 2021 by

Under Part 2, Chapter 1 of the Commonhold and Leasehold Reform Act 2020, the  leaseholders of a block of flats have a statutory right to take over the management of their building, providing certain criteria are satisfied. Generally, they will have the right to take over the management of their building if a majority of the tenants in the block take part and the statutory procedure is followed correctly. 

The landlord can only object in very limited circumstances, meaning a claim for the right to manage is a relatively safe process. In addition to being safe, the right to manage is normally a process that is undertaken where the leaseholders cannot afford or simply do not have the appetite to acquire the freehold outright. This process therefore provides an inexpensive alternative as there is no requirement to pay a premium.

The downside to the right to manage route is that the landlord will remain in the picture. However, once the right to manage claim is completed, the leaseholders will have the collective right to decide how the building is run, to include how charges are levied against the leaseholders in the building. It therefore provides a valuable alternative to the freehold acquisition process where outright acquisition is not possible.

Healys’ dedicated team of experts can guide you through the entire process from start to finish to achieve the best outcome for you.  

If you would like more information or require assistance in this area then please contact Daniel Winslow, Partner and head of this firm’s Leasehold Services department.