How do you change a managing agent?
It is actually more simple than you think to change your managing agent depending on who appointed them in the first place. If the developer of the block of leasehold flats appointed the managing agent then normally after the last flat is sold there are a few first steps you would need to investigate. Firstly some (very few) developers integrate the agent in what is called a tr-party lease where the agent is embedded into the lease. This is the most difficult scenario as you would need solicitor advice (www.ringleylaw.co.uk) to look at ways to extricate the management company and could end up in tribunal as you would have signed the initial lease accepting this set up. More frequently after the last flat s sold the residents get together and form a collective voice via a Resident's Association. Any discontent is then formally laid out to the Freeholder and they or their agent. Issues are either rectified or a case made to the Freeholder to remove the agent. Often the Freeholder at that point would remove the agent but if they don't residents would then for a Right to Manage Company whom would then have this power to remove the agent.
A few options for changing your managing agents
There are a few options for how to change your managing agent. See our main site for examples of our work.
Lease structure :
1. A what is called "Tri-Party Lease" – Three parties, the freeholder/landlord, the management company and the leaseholder.
The management company is ultimately responsible for appointing the managing agent and normally all leaseholders become members of this company when they buy their pflat. Normally ther will be a full board of directors who choose and instruct the managing agent on all matters. One can find out who they are by searching at Companies House. If you become a member of the boardof Directors then you have the opportunity to make decisions and have an influence at the board to re tender the management agreement and company. You need to contact your incumbent managing agent and inform them that you would like to become a director of the management company. Request that they send your request to the current board of directors.
If you don;t want to become a member of the board then you need to convince the current board to re-tender the current managing agent’s appointment.
2. A Two-Party Lease – The freeholder and the leaseholder.
This type of lease makes it far more complex to change managing agents. The options available are:
Convince the Freeholder/Landlord to agree to change managing agents.
Invoke your Right to Manage. You will need 50% of the leaseholders to agree to become members.
Purchase the Freehold with the other like-minded leaseholders in your block. Funds may be an issue as leaseholders cannot raise money privately. It is often easier and cheaper to claim your Right to Manage to obtain management control. Leaseholders may proceed with buying the Freehold at a later date when the lease runs low to around 70 years.
Make an application to the Tribunal to appoint a court appointed manager. If you can demonstrate inadequate or unprofessional management this process can work for you.
3. Tri-Party with Managing agent named in the leases.
Three parties !, the freeholder, the Managing Agent and the leaseholder. This is very common in larger developments - there is very often a clause written into the lease to exit the agreement.
In all scenarios we are here to help, do fill out the form on this page and we will contact you within two hours.
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