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The Commonhold and Leasehold Reform Act 2002 provides opportunities for flat owners to run their own buildings. Typically running your own building can save in the region of 30% of the annual running costs. This in turn improves the value of the property. Right to Manage does not necessarily mean self management but it does mean that whoever runs the building reports directly to the Owners who are members of the Management Company.

Obtaining the Right to Manage for your block of apartments can be a complicated but ultimately worthwhile process. We would never recommend that Owners undertake this process themselves as failure leads to delays, sometimes the process can take 12 months to wrest from Managers who will find any excuse not to relinquish control.

There is a legal obligation for all funds held by the current Management Company to be handed over.

On each development at least 50% of the Owners must apply for membership of the Right to Manage Company.

The Freeholder can challenge the Right to Manage and often do so that the y can extend the time in which they can continue management.

Where cases are disputed they will ultimately be decided by the Leasehold Valuation Tribunal/First Tier Tribunal, this Tribunal is impartial. Once the Application to them is made this can take up to 3 months to be heard, a date is then set if the Application is successful for handover to take place.

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