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New right to manage

James Driscoll explains how the ’right to manage‘ is established and how it affects the roles of flat leaseholders and landlords

28 June 2002

Of all the changes made by Pt 2 of the Commonhold and Leasehold Reform Act 2002 (which received Royal Assent on 1 May 2002) the introduction of a new right to manage (RTM) is the most radical. Once in force, the RTM will allow a qualifying group of leaseholders to take over the running and management of the block containing their flats. No default on the part of the landlord or any managing agent has to be proved. No court or tribunal proceedings are necessary. Nor do the leaseholders have to pay the landlord any compensation. As the practical workings of the RTM will be set out in statutory instruments made under the Act, the RTM is not likely to come into effect until the middle of 2003. But until then there is plenty for leaseholders, managers, landlords and their advisers to think about. The RTM applies to any qualifying block. It includes a qualifying block owned by a registered social landlord but not one owned by a local authority. How is the RTM exercised?...

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