Right to Manage

[DovertheRoad]

Dealing with our freeholder is death by a thousand cuts and I've finally got fed up with getting stiffed on spurious or inflated charges. The LVT is a hassle too so finally looking at Right to Manage. I'm pretty up to speed with what's involved but wanted to hear from anyone who has done it as to (i) was it as straightforward as expected? (ii) any regrets? (iii) what did it cost?

Cheers

Dover

[intexasatthe moment]

I'm interested in this as well.

Anyone any experience ???

[nxjen]

..

[Mick Mac]

no experience I'm afraid - but is freeholder Dulwich Estate or an individual?

[Wimpole]

.

[DovertheRoad]

Lots of full stops up there...

The freeholder is essentially a family business with several thousand freeholds across London. They build long term portfolio value from capital appreciation in the freehold value and lease extensions. And they generate short term revenue (cash) through application of management charges and fees relating to enforcing lease requirements. As such their interests (maximise costs) are wholly misaligned with leaseholders (reduce costs). They operate (mostly) legally although their Trustpilot reviews suggest otherwise. I'm pretty clued up and have spent years challenging their costs and usually succeeding. We needed a new roof - they quoted ?40k, I challenged and got it done for ?15k. They wanted ?7k to repaint the exterior timber. We got it done for ?1.8k. Basically that x 10 over the past 15 years. They're just wearing me down now. Which is why many people in this situation just swallow it vs hassle to do something.

Right to Manage looks like it costs as little as approx ?500 and I'm comfortable with the admin of running a small ltd co. All leaseholders get on and keen to do it. And it looks like we'll save ?500-?800 per year if it proceeds unchallenged. Just curious as to why more people aren't doing it. And keen to hear from those who have re. above points.

[intexasatthe moment]

I share your curiosity .I guess people are just nervous ?

I went to a Leaseholders Roadshow when it was held locally https://www.theleaseholdroadshow.co.uk/ and asked about Right to Manage . They weren't very encouraging about going for right to manage and were pushing buying a share of the freehold .They were quick to point out that the Freeholder would have a share in the management company formed under right to manage .But that seems fair enough ,and they wouldn't have a controling vote .

It would be interesting to know how you get on .

[DovertheRoad]

Good point re. having a freeholder as a Shareholder. I see the roadshow is run by a company with a vested interest in helping leaseholders and I suspect their fees are far higher in a compulsory freehold purchase versus the ?500 they'd get to facilitate RTM.