Managing Your Leasehold Extension
Several days ago you heard some tenants complaining in the hall about the lack of management in the block. You couldn't help joining in the conversation. 'We should take action on this; we could do it much better ourselves' was the final agreement. You are resolved, let's manage our block ourselves. And we can extend the lease.
The right to manage provisions of The Commonhold and Leasehold Reform Act 2002, allows leaseholders to remove the management company of their block, and replace it with a company of their choice. In other words: to do it themselves. But why should you take up your right to manage? Well, if you live in a block of flats and do not have a say in who runs that block, then you can benefit from the right to manage process. Prior to extending your lease, take care to exercise this right and you can add value to your property.
This right is available to all flat owners, in all blocks where they fulfill a certain criteria:
1. A minimum of 50% of the people who own flats in the block must agree to go through with the process.
2. At least two-thirds of the flat-owners within the physical block must have long leases (greater than 21 years at the time of issue).
3. A maximum of 25% of the block can be used for non-residential purpose (excluding any car parks and communal areas).
Have you checked all the points? Then it is highly likely you will be able to go through the right to manage process with 100% success. This is a fantastic asset if you are extending your lease.
If you are not too sure about any of the points then ask for help. There are a small number of technical legalities which can prevent some blocks going through the right to manage process. A specialist solicitor can help you clear any doubts and make sure the process runs smoothly. They can also give you advice on another process: your leasehold extension.
Remember: If the majority of your fellow tenants are unsatisfied with how the block is being managed, and you meet the 3 criteria, then it is worth taking the trouble to do it yourselves. Manage your block and extend your lease - why not?
Once your lease extension is done and you are managing your block, you will enjoy the process of controlling things yourself. That's valuable for the following 99 years of your lease extension...
About the Author
Bonallack and Bishop are Lease Extension Solicitors (http://www.enfranchisementsolicitors.co.uk ) with significant expertise in advising on leasehold extension. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 13 years and has plans for continued expansion.
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