Low Adoption of Leaseholders Managing Their Property

• A survey at the Ideal Home Exhibition revealed that only 12% of leaseholders self-manage their properties, with 78% aware of the right to manage but unsure of the benefits or how to claim it.

The Right to Manage: A Missed Opportunity?

• The Commonhold and Leasehold Reform Act 2002 grants leaseholders the right to manage their property without needing to prove mismanagement by the landlord. Despite this, most leasehold flats are still managed by freeholders or managing agents.

How the Right to Manage Works

• Leaseholders can form a special company to manage their property. To qualify, the building must have at least two flats, two-thirds of the flats must be let to qualifying tenants, and no more than 25% of the property can be non-residential.

Benefits of Self-Management

• By managing their block, leaseholders can avoid the costs of appointing a managing agent and have control over the property’s management and finances. This is especially beneficial for small sites.

Costs for Leaseholders

• Leaseholders of small blocks may incur a minimum management fee of around £2,000, which could be avoided by self-managing.

Leaseholder Support Resources

• LeaseholderSupport.co.uk offers guidance to leaseholders on managing their properties, including assistance with payment management, financial and legal documentation, and recovering late payments.