For many leaseholders, dissatisfaction with the way their building is managed is a familiar problem. High service charges, poor maintenance, and lack of transparency can lead to frustration and, in some cases, financial strain. The right to manage offers a practical solution, allowing leaseholders to take control of the management of their building without having to purchase the freehold.
However, the process is not always straightforward. Landlords and managing agents may resist attempts to take over management, raising objections that can delay or complicate the process. Understanding how to deal with these challenges is essential for a successful claim.
In this article, we explain how the right to manage works, the types of objections landlords may raise, and how leaseholders can overcome them.
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What is the right to manage?
The right to manage is a statutory right granted to leaseholders under the Commonhold and Leasehold Reform Act 2002. It allows qualifying leaseholders to take over the management functions of their building through a special purpose company, known as a right to manage company.
Importantly, leaseholders do not need to prove fault on the part of the landlord. The right exists regardless of whether the current management is satisfactory.
Why leaseholders pursue the right to manage
There are many reasons why leaseholders choose to exercise this right. Common motivations include:
- Excessive or unclear service charges
- Poor quality maintenance or repairs
- Lack of communication from managing agents
- Concerns about conflicts of interest
- Desire for greater control and accountability
Taking over management can lead to improved services, better cost control, and increased transparency.
Eligibility criteria
Before initiating a claim, leaseholders must ensure that both the building and the participants meet the statutory requirements.
Building requirements
The building must:
- Contain at least two flats
- Be self contained or capable of being managed independently
- Have at least two thirds of the flats held by qualifying tenants
Tenant participation
At least half of the qualifying tenants must be members of the right to manage company at the time the claim is made.
A qualifying tenant is usually a leaseholder with a long lease, granted for more than 21 years.
The right to manage process
Understanding the process helps leaseholders anticipate and respond to potential objections.
Step 1: Form the right to manage company
Leaseholders must incorporate a company that will take over management. This company must comply with specific statutory requirements and adopt prescribed articles of association.
Step 2: Serve notices on leaseholders
A notice inviting participation must be served on all qualifying leaseholders who are not already members of the company. This ensures that all eligible tenants have the opportunity to join.
Step 3: Serve the claim notice
The formal claim notice is served on the landlord and any other relevant parties. It sets out the details of the claim and specifies a date on which management will transfer.
Step 4: Landlord response
The landlord has a set period in which to respond by serving a counter notice. This is where objections are typically raised.
5: Tribunal determination if required
If the landlord disputes the claim, the matter may be referred to the First tier Tribunal Property Chamber for determination.
Step 6: Acquisition of management
If the claim is successful, the right to manage company takes over management on the specified date.
Common landlord objections
Landlords often challenge right to manage claims on technical or procedural grounds. Understanding these objections is key to overcoming them.
Alleged failure to meet eligibility criteria
One of the most common objections is that the building or the leaseholders do not meet the statutory requirements. For example, the landlord may argue that:
- The building is not self contained
- There are insufficient qualifying tenants
- The participation threshold has not been met
These objections require careful analysis of the building structure and lease arrangements.
Defects in the claim notice
The claim notice must contain specific information and be served correctly. Landlords frequently scrutinise notices for errors, such as:
- Incorrect details of the property
- Failure to identify all relevant parties
- Errors in dates or signatures
Even minor defects can be relied upon to challenge the claim.
Disputes over appurtenant property
Issues may arise regarding areas associated with the building, such as gardens, car parks, or accessways. Landlords may argue that these areas fall outside the scope of the claim.
Allegations of procedural non compliance
The right to manage process is highly technical. Landlords may object on the basis that:
- Notices were not served on all required parties
- Time limits were not observed
- The right to manage company has not been properly constituted
Such objections can delay proceedings and increase costs.
How to overcome landlord objections
While landlord resistance can be frustrating, most objections can be addressed with proper preparation and expert advice.
Ensure strict compliance from the outset
The best way to avoid disputes is to ensure that every step of the process is handled correctly. This includes:
- Verifying eligibility before starting
- Preparing accurate and complete notices
- Serving documents in accordance with legal requirements
Attention to detail at an early stage can prevent costly challenges later.
Obtain professional advice
Given the technical nature of the process, professional guidance is invaluable. Solicitors and specialist advisers can:
- Review eligibility and documentation
- Draft and serve notices
- Respond to landlord objections
- Represent leaseholders in tribunal proceedings
Early advice can significantly improve the chances of success.
Respond promptly to counter notices
If the landlord serves a counter notice disputing the claim, leaseholders must act quickly. There are strict time limits for applying to the tribunal.
Failure to meet these deadlines can result in the claim being deemed withdrawn.
Use tribunal proceedings effectively
The tribunal provides an independent forum for resolving disputes. Leaseholders can present evidence and arguments to demonstrate that the claim meets all legal requirements.
A well prepared case can overcome most objections, particularly where they are technical in nature.
Consider re serving the claim
In some cases, it may be more efficient to withdraw and re serve the claim rather than contest a technical defect. While this may cause some delay, it can avoid prolonged disputes and additional costs.
Practical challenges during the process
Even where objections are successfully overcome, leaseholders may encounter practical difficulties.
Access to management information
Landlords are required to provide certain information to facilitate the transfer of management. Delays or incomplete disclosures can hinder the process.
Handover of contracts and funds
Transferring management involves the assignment of contracts, service charge funds, and ongoing obligations. This can be complex, particularly in larger developments.
Managing the building post acquisition
Once management is acquired, the right to manage company assumes full responsibility. Leaseholders must be prepared to:
- Appoint managing agents if required
- Oversee maintenance and repairs
- Comply with legal and regulatory obligations
Effective planning is essential to ensure a smooth transition.
Benefits of a successful right to manage claim
Despite the challenges, the benefits of taking control are significant.
- Greater transparency in financial management
- Improved quality of services
- Ability to appoint or replace managing agents
- Enhanced accountability
- Potential cost savings over time
For many leaseholders, the right to manage represents a turning point in the management of their building.
How Blackstone Solicitors can help
Blackstone Solicitors has extensive experience advising leaseholders on right to manage claims across England and Wales.
Our team provides comprehensive support, including:
- Assessing eligibility and advising on strategy
- Incorporating right to manage companies
- Preparing and serving statutory notices
- Responding to landlord objections
- Representing clients in tribunal proceedings
- Advising on post acquisition management issues
We understand that each building presents unique challenges. Our approach is tailored to achieve efficient and effective outcomes for our clients.
Conclusion
The right to manage is a powerful tool for leaseholders seeking greater control over their building. While landlord objections can complicate the process, they are often based on technicalities that can be overcome with careful preparation.
By understanding the legal framework, anticipating potential challenges, and obtaining expert advice, leaseholders can successfully navigate the process and take control of their building’s management.
If you are considering a right to manage claim or facing resistance from your landlord, early legal advice can make all the difference. With the right support, a smoother transition to leaseholder led management is well within reach.
We have a proven track record of helping clients deal with the legal aspects of Property Litigation. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting. You can read more about the range of property litigation services we offer by clicking here: https://blackstonesolicitorsltd.co.uk/commercial-litigation/
How to Contact Our Property Litigation Solicitors
It is important for you to be well informed about the issues and possible implications of Property litigation. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Commercial Property solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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