Right to Manage New Legal News- how might this affect you?

Rules are changing relating to forming RTM companies, this may affect you if you are in a large estate and are wanting to move managing agents, and ultimately have more control of your block.

The case: Triplerose Limited v Ninety Broomfield Road RTM Company prevented the estate to form one Right to Manage Company, they stated that one RTM company should be made for each block.

The reasons were

  1. One block might want to increase service charges whereas the other might not;

  2. One block might wish to grant approvals for, e.g. sub-letting to periodic tenants, whereas the other might not;

  3. One block might wish to undertake major works (e.g. at a particular time) whereas the other might not;

  4. Estate rules and regulations might be varied to benefit one block at cost of another, e.g. allocation of parking, storage use of gardens, etc.

This does complicate matters for estates wanting to get together and take more control over their block. It will also raise the question of does an estate just wish to get together and buy the freehold rather than forming an RTM company first?

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