Right to Manage
Choosing to buy the freehold title of your property may prove too costly or lengthy, which is why you may consider taking over the management responsibilities of the property from the freeholder instead. While this won’t grant you all of the benefits of owning the freehold, it will give you and your fellow leaseholders more control over the common areas of your property through a process known as Right to Manage.
One of the very clear benefits of having the Right to Manage is that is allows you and your fellow lessees the ability to collectively control how common areas of the property are used and maintained; this includes being able to choose which agencies service the property and switching providers if there is a better offer available, as well as securing long-term consistency of service. What having the Right to Manage does not achieve, however, is excluding the freeholder from having a say in how the common areas of the property are managed and it will not increase the value of your property like owning the freehold title would.
Having the Right to Manage means one resident will need to be willing to take on the onerous task of administration for all leaseholders, which could cause issues further down the line if there are any disagreements. A more secure way of exercising the Right to Manage is to establish a Right to Manage Company, which will provide flexibility for day-to-day decisions and allow greater input from residents. However, bear in mind it will allow the freeholder to be a member with voting rights, and also requires is own set up costs, legal processes and annual company costs.
Before considering whether the Right to Manage is right for you and your fellow building residents, it’s worthwhile talking to an experienced solicitor who can put your individual situation into perspective and advise on the best path forward. For a Free Initial Assessment, call the QualitySolicitors team today on 08082747557.