The government has asked the Law Commission to review the Right to Manage (‘RTM’) legislation to make it simpler, quicker and more accessible, particularly for leaseholders.
The consultation makes provisional proposals for reform of the current RTM legislation.
The issues of unfair leaseholds, enfranchisement, commonhold and right to manage are interrelated, so it is fitting that the release of this consultation coincides with the current consultation on commonhold.
The RTM was introduced to give leaseholders control over the management of their buildings. However, the current system is seen by many as too technical, slow, restrictive, uncertain and expensive.
The consultation paper discusses the problems with the current law including: restrictive criteria, such as the inability of an RTM company to manage multiple blocks on an estate, the exclusion of premises with more than 25% non-residential space, and the exclusion of leasehold houses.
The Commission’s provisional proposals include:
- relaxing the qualifying criteria, so that leasehold houses, and buildings with more than 25% non-residential space, could qualify for the RTM
- permitting multi-building RTM on estates
- reducing the number of notices that leaseholders must serve, and giving the tribunal the power to waive procedural mistakes
- setting out clearer rules for the transfer of information about management functions, and for the management of property which is not exclusive to the premises claiming the RTM, and
- requiring each party to bear its own costs of any tribunal action and exploring options for the landlord’s non-litigation costs.
The Law Commission is holding four regional events in Birmingham, Cardiff, Southampton and London which are aimed at professionals in the legal and property sectors.
These events will be an opportunity for professionals interested in the proposed reforms to the law of commonhold and the Right to Manage to give their views.
A flyer containing the details of these four events and information on how to book is available to download.
We encourage all those interested in the RTM to attend these events and respond to the consultation. The consultation is open until 30 April 2019.