Good news for lessees of flats! On 30 September, Part 2 of the Commonhold and Leasehold Reform Act 2002 came into force, heralding greater freedoms for such leaseholders.
The right to manage (RTM) provisions in the second Commencement Order will give collective lessees greater control over the level of service charges, and will enable them to choose their own managing agents and insurers: see James Driscoll’s article
The pros and cons of lessees exercising their RTM rights via companies set up for that purpose have been carefully considered by John Spencer-Silver, of Rooks Rider, in his article
See also Cordelia Brabbs’ article
Keep an eye out for the remaining provisions under the Act, which are expected to come into force in spring 2004. These are likely to include provisions that will further ease the enfranchisement of flats and to prevent landlords from forfeiting leases following trivial debts.
Related point:
PP 2003/58
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Good news for lessees of flats! On 30 September, Part 2 of the Commonhold and Leasehold Reform Act 2002 came into force, heralding greater freedoms for such leaseholders.
The right to manage (RTM) provisions in the second Commencement Order will give collective lessees greater control over the level of service charges, and will enable them to choose their own managing agents and insurers: see James Driscoll’s article The blocks are off for leaseholders Estates Gazette 25 October 2003, p128.
The pros and cons of lessees exercising their RTM rights via companies set up for that purpose have been carefully considered by John Spencer-Silver, of Rooks Rider, in his article Management power Estates Gazette 1 June 2002, p128. He warns that the task of administering an RTM company, with both qualifying tenants and landlords carrying out the management functions, is “not for the faint-hearted”.
See also Cordelia Brabbs’ article Tenants get in on the Act Estates Gazette 13 July 2001, p110, which looks at the potential pitfalls that lie in wait for both tenants and managing agents.
Keep an eye out for the remaining provisions under the Act, which are expected to come into force in spring 2004. These are likely to include provisions that will further ease the enfranchisement of flats and to prevent landlords from forfeiting leases following trivial debts.
Related point:
PP 2002/157 (first Commencment Order).
