Right to Manage

Right to Manage

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Governed by the Commonhold and Leasehold Reform Act 2002, this is a ‘no fault’ claim from leaseholders to acquire the right to manage their building.

Right to manage claims have been subject to a vast array of litigation over the years based on disputes over claim validity. This highlights the extent to which right to manage claims have been improperly brought without the eligibility requirements being met in full.

Right to manage claims should be fully scrutinised with the benefit of specialist legal advice to ensure that only valid claims proceed. Landlords have the right to either admit or deny claims by serving a counter-notice and if the dispute persists then an application to a Tribunal may be required.

Qualifying Criteria:

There are key criteria for exercising the right to manage. If any of the eligibility criteria are not met then the claim can potentially be opposed. Determining whether the eligibility for a claim exists requires careful consideration with the assistance of expert legal advice. The qualifying criteria can be summarised as:

  1. The building or premises itself must be self contained. The building must be structurally detached or must be capable of being redeveloped independently,
  2. be the only building included in the claim – acquisition of the right to manage cannot be made in respect of multiple blocks within a single claim by a single right to manage company,
  3. The premises must not be ‘excluded’ by the legislation. For instance more than 25% of its internal floor area cannot be occupied or intended to be occupied for non-residential purposes. This is often a factor where buildings have ground-floor commercial units.
  4. The premises must contain at least two flats held by ‘qualifying tenants’. This simply requires a leaseholder to hold a lease with more than 21 years left on its term.
  5. At least two-thirds of the flats in the premises must be held by ‘qualifying tenants’
  6. The claim must be made by a group of qualifying tenants that collectively hold not less than one half of the total number of flats in the premises.
  7. PDC Conveyancing can provide full advice and assistance in assessing the eligibility of your claim so that you can begin the process with confidence.

Next Steps?

If you are a landlord and interested in learning more then please contact our Dominic Cassidy of our Business Development Team for further information: dominic.cassidy@pdcconveyancing.co.uk