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Leasehold: Right to Manage Companies

Department for Communities and Local Government written question – answered on 20th March 2017.

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Photo of Rosena Allin-Khan Rosena Allin-Khan Shadow Minister (Culture, Media and Sport) (Sport)

To ask the Secretary of State for Communities and Local Government, whether safeguards are in place in blocks of flats containing between three and six properties to ensure that one leaseholder does not coerce others into a Right to Manage scheme at the expense of the freeholder and the upkeep of that building.

Photo of Gavin Barwell Gavin Barwell Minister of State (Department for Communities and Local Government) (Housing, Planning and London)

There are statutory protections in place for this matter.

A majority of leaseholders is required to set up a Right to Manage Company, which is then governed subject to company law decision making procedures. The freeholder is entitled to apply to be a member after the acquisition date.

A Right to Manage Company is subject to two codes of management practice setting out the law and best practice. These were updated in June 2016, and approved by the Secretary of State, and must be taken into account at court or tribunal proceedings where relevant.

Any leaseholder can apply to the First-tier Tribunal to appoint a new manager (s.24 Landlord and Tenant Act 1987) due to poor management, unreasonable fees or not complying with Managing Agents’ Codes of Practice.

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