RTM and how do residents take over management of their block of flats

The large and growing community of UK homeowners and renters trust us to provide answers to queries that matter the most in the UK property industry. In this blog, we cover the most trending topics in the industry. We aim to address these topics to benefit the community eager to navigate the ever-changing UK property marketplace.

The Right to Manage (RTM) allows certain leasehold property owners to take control of building management without the landlord's agreement. Leaseholders will have to manage responsibilities such as collecting servicechargesorted.co.uk/blogs/service-charge-accounts-for-self-managed-small-blocks-of-flats'>service charges, maintaining communal areas and building structures, and handling complaints from other leaseholders. To exercise this right, leaseholders must form an RTM company. Landlords are also bestowed with the right to be part of this company if they so choose. They can vote on decisions, with the number of votes based on the number of flats they own in the building. The RTM company covers any costs incurred during the management transfer process, regardless of whether they get to manage the building.

Right to Manage and what it offers

The Right to Manage (RTM) empowers leaseholders of a building with at least two flats to gain property management control from the landlord or existing management company. Tenants forming the RTM company can either directly manage the building or hire the services of a managing agent. The landlord can be an RTM company member and vote on decisions. The RTM company assumes all management functions under the lease, excluding forfeiture procedures, but must keep the freeholder informed on matters like alterations or repairs. The process is straightforward, but qualifying rules and criteria can be intricate. The RTM is a crucial right for leaseholders, granting them control over their property management.

Ringley Law can help leaseholders get together and find a common purpose form the RTM Company and serve the necessary statutory notices to claim the right to manage for your block

Development valuations | Development appraisals - find a specialist RICS Valuer

Development appraisal in the UK evaluates the financial feasibility of a project, considering the residual property or land value with or without planning permission and potential returns. This is because the Royal Institution of Chartered Surveyors (RICS) Valuation and Appraisal Manual includes 'hope value' in their definition of 'market value'. This includes.

• Assessing gross development value.
• Land acquisition and building costs.
• Profits.
• Associated professional fees and expenses.

Ringley's Valuation and Surveying Team offers development valuation services that can help investors immensely. Development Appraisal Tools can be used for scheme analysis and assessing the need for financial support in many projects. The appraisal process involves researching legal, planning, and physical aspects of potential development sites for limitations and opportunities.

How to buy or sell a property with the absent freeholder

Selling a property in the UK without an active freeholder can create multiple issues, potentially causing delays or hindering the sale. But it can be done. Solutions include obtaining indemnity insurance to safeguard the buyer against future claims. You can also explore legal avenues like a vesting order to take ownership. However, some lenders may be cautious, and this may cause difficulties for buyers in securing loans. Maintenance and dispute resolution options can also be challenging. Obtaining the necessary documents may be difficult if the absent freeholder is the managing agent and is not contactable.

Ringley Law can help leaseholders buy and sell even with an absentee freeholder. They can even help a group of leaseholders wanting to enfranchise and buy the freehold even if there is an absentee freeholder. A valour needs to be appointed to determine a reasonable premium and to present this to the First Tier tenancy-agreements-made-easy'>planetrent.co.uk/blog/could-a-tax-tribunal-ruling-mean-btl-investors-avoid-3-stamp-duty-surcharge'>Tribunal to sanction and Ringley Law has to prepare the draft purchase contract so that the First Tier tenancy-agreements-made-easy'>planetrent.co.uk/blog/could-a-tax-tribunal-ruling-mean-btl-investors-avoid-3-stamp-duty-surcharge'>Tribunal can make a judgment and the freehold purchase money be paid into the court (in case the freeholder claims it at some future date).

Buildings Insurance - is your block of flats or household buildings insurance adequate? Are you at risk and underinsured?

A building or property insurance reinstatement cost valuation assesses the sum of monies or cost of rebuilding the property or block of flats. This forms the declared value on the building's insurance policy. If it is wrong or too low in the event of any claim or loss, you risk being under-insured and left having to pay the shortfall. You can use the Ringley Group's online block of flats insurance calculator as a guide, but there is no substitute for a building reinstatement cost valuation carried out by an RICS-qualified value

Ringley's Valuation and Surveying

Try out of flats insurance calculator here

https://ringley.co.uk/home-insurance-calculator

Ringley's Valuation and Surveying Team is of course a Royal Institution of Chartered Surveyors (RICS-regulated) firm. Our Valuers conduct the reinstatement cost assessment by evaluating the building's structure and fittings. Depending on property size and complexity, the assessment can be done through a site visit or desk-based evaluation. A building cost reinstatement valuation otherwise known as an insurance valuation should be done every three to five years to ensure the property values are up-to-date and have adequate coverage. Under-insurance may result in reduced claim payouts, while over-insurance can lead to higher premiums. Engaging a surveyor experienced in insurance valuations is recommended.

How to change your Managing Agent or Property Management Company 

Managing Agent not doing its job properly?

If your property management company is inefficient and has repeatedly failed to discharge its responsibilities, you might want to consider changing to another Managing Agent. The first step is to review the management agreement and understand their services and obligations. If there is a breach, issue a formal complaint and request rectification. If the problem persists, terminate the contract after providing the necessary notice. Legal action is an option, but seek advice from experts before taking this step particularly as most Managing Agents are members of or regulated by a professional body and/or members of a Property Ombudsman scheme. Consider the legal structure of your lease and or management company as you may not have the right to change Managing Agent unless you fulfil the criteria and exercise your right to manage (RTM). If you want to try self-managing your block of flats, there is another way ServiceChargesSorted.co.uk.

ServiceChargesSorted.co.uk is a bit like a Low-Cost Managing Agent - it provides a service where you are the manager but all the legal and financial admin including running and reconciling the bank account, preparing accounts, and dealing with Companies House is done for you. For larger blocks, the services of a reputed professional property management company or Managing Agent are usually essential. We recommend that you look at customer reviews, see what records they share online - as transparency matters and then find a company that will listen and guide you. Why not try Ringley Block & Estate Management?

Block Management London

Several servicechargesorted.co.uk/blogs/new-block-management-code-boost-service-delivery'>block management companies in London specialise in managing residential and commercial properties. These services typically include:

1. Property Management: Handling day-to-day property management, maintenance, repairs, and overall upkeep.
2. Building Insurance: Managing the choice of building insurance to guarantee sufficient coverage.
3. Contract Management: Ensuring that contracts for cleaning and maintenance are in place and provide good value for money.
4. Health and Safety Compliance: Ensuring compliance with health and safety regulations.
5. Accounts and Support Services: Managing financial aspects, including servicechargesorted.co.uk/blogs/service-charge-accounts-for-self-managed-small-blocks-of-flats'>service charge collection and financial reporting.
6. Site Visits: Conduct regular site visits to ensure the proper functioning of various property elements and address any issues.

These services are customised to meet the specific needs of property owners and residents, ensuring effective and streamlined property management.

Residential Block Management Services

Residential servicechargesorted.co.uk/blogs/new-block-management-code-boost-service-delivery'>block management services typically cover property management, building insurance, contract management, health and safety compliance, accounts and support services, and site visits. Leading block Management Company’s offer personalised solutions for property owners and tenants. These services include 24/7 availability, emergency support, and VIP services for upscale developments. They are tailored to match the specific needs of each building and lease. servicechargesorted.co.uk/blogs/new-block-management-code-boost-service-delivery'>Block management entails good knowledge in areas such as accounting, health and safety, law, insurance, and construction. For those new to property or thinking about buying in the UK we hope this identifies some of the key topics any buyer should be aware of.