Right to Manage Companies

Department for Communities and Local Government written question – answered on 9th December 2015.

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Photo of Baroness Gardner of Parkes Baroness Gardner of Parkes Conservative

To ask Her Majesty’s Government what consideration they have given to the issues involved in maintaining or improving leasehold properties under the Commonhold and Leasehold Reform Act 2002, in particular in central London, where a right to manage exists.

Photo of Baroness Gardner of Parkes Baroness Gardner of Parkes Conservative

To ask Her Majesty’s Government whether they plan to legislate in connection with the right to manage in order to provide a limited time within which non-resident leaseholders who fail to respond can be deemed to have agreed to a proposal.

Photo of Baroness Gardner of Parkes Baroness Gardner of Parkes Conservative

To ask Her Majesty’s Government whether they will clarify the measures that can be taken to enable works to be carried out when they are wanted or needed by a majority of leaseholders in leasehold residential properties.

Photo of Baroness Williams of Trafford Baroness Williams of Trafford The Parliamentary Under-Secretary of State for Communities and Local Government

The maintenance and repair of a block of flats containing leasehold properties is normally the responsibility of the landlord and will be set out under the terms of the lease. This responsibility can pass to a Right to Manage Company where leaseholders have exercised and acquired that right, allowing them to exercise direct control over how their block is maintained.

Landlords, or those who have acquired the Right to Manage, have a contractual obligation under the terms of the leases to carry out necessary works to the properties that they are responsible for maintaining. Where works are suggested by a majority of leaseholders that are not essential to the repair or maintenance of the property, we would expect landlords to engage with their leaseholders to discuss the feasibility of the suggested works, but there are no plans to legislate to obligate landlords to carry out such work.

There are also no plans to legislate to provide a limited time within which non-resident leaseholders who fail to respond to a proposal for qualifying works, are deemed to have agreed to the proposed works. The statutory consultation process (known as section 20) gives leaseholders the ability to have a greater say on proposed works to their property by making observations. It does not require leaseholders to make observations, but any observations that are made must be made within a specified time limit. The landlord (or Right to Manage Company) is therefore in the knowledge that subject to observations made, they are able to proceed with necessary works.

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