Right to Manage (RTM) Company
The Commonhold & Leasehold Reform Act 2002 came into effect on 30th September 2003 and provides a right to leaseholders in flats to take over the responsibility for the management of their building, known as “Right-to-Manage” (RTM).
The RTM Company must be limited by guarantee, and its Articles of Association must follow a specified form as is laid down by legislation.
Our fees for the formation of a Right-to-Manage (RTM) Company start from £260.00 inclusive of VAT.
For further information, or to discuss your particular requirements, please contact us on 0117 983 6600 or email Damian Wardingley formations@bourse.co.uk.
Right to Enfranchisement (RTE) Company - delayed
The Commonhold and Leasehold Reform Act 2002 (the 2002 Act) makes a number of changes to the enfranchisement process through which tenants can acquire the freehold of the property in which their flats are situated.
The majority of the provisions of the Act, which effectively water down the requirements to exercise the right, have gone live.
While the RTE legislation is on the statute books, the regulations that are required to give effect to the RTE legislation have not yet been made. In particular, the provisions which require that the right to enfranchisement be exercised through a “Right-to-Enfranchisement” (RTE) company, and which define an RTE company, have not yet been implemented.
In practice this means that, as things stand, statutory RTE companies do not exist.
Leaseholders can continue to exercise their statutory right to buy the freehold under the Leasehold Reform, Housing and Urban Development Act 1993 (the 1993 Act) and can do so by setting up a company for this purpose (a 'nominee purchaser' under the 1993 Act, which must be limited by guarantee), but they cannot rely on the RTE provisions in the 2002 Act to do so.
We shall of course let you know as soon as these relevant provisions go live, and the RTE Company can be used.
For further information, or to discuss your particular requirements, please contact us on 0117 983 6600 or email Damian Wardingley formations@bourse.co.uk.