The right to manage is provided by the Common hold and Leasehold Reform Act 2002 and it enables tenants with long leases of their flats to acquire the management functions of the building from their landlord.
It is important to remember that the right to manage is not enforceable only over landlords who have mismanaged their properties. In fact, it is not necessary to prove mismanagement by the landlord at all. The right to manage is even obtainable without the need for the landlord’s consent or a court order.
Exercising the right to manage enables you to be in direct control of the management functions of your building. It is important to remember that, as the tenants, you will not manage the property yourselves. Instead we will set up a right to manage company on your behalf.
Note that at least 50% of the qualifying tenants in the building must be members of the right to manage company, through which the tenants will acquire the management functions of the property.
Do you qualify for the right to manage?
You may qualify for the right to manage as a qualifying tenant if you have a long lease, which is:
- A lease with an original term of at least 21 years;
- A lease with a clause providing for the right of perpetual renewal;
- A lease granted under ‘right to buy’ or ‘right to acquire on rent or mortgage terms’; or
- A shared ownership lease where your share is 100%.
Your building may qualify for the right to manage if it:
- Is self-contained or, at the very least, capable of being redeveloped independently;
- Contains at least two flats of which two thirds of the flats must be let to ‘qualifying tenants’;
- Uses at least 75% of its total floor area for residential purposes;
- Is not be owned by a housing authority.