Right To Manage Solicitors and Company Formation
If you are a leaseholder thinking of acquiring the right to manage your property along with a group of your fellow tenants, then you will need to form a right to manage company. There are requirements and processes set down to enable you to do this under the Commonhold and Leasehold Reform Act 2002. This guide takes you through the basics of how to form a right to manage company.
First off, it's important to know the requirements for doing so. If you are unsure about this, then it would be a good idea to talk to specialist right to manage solicitors as they will be able to advise you and give you the right guidance. You need to make sure that enough tenants qualify before you can set up the company. Generally speaking, this means that tenants only qualify to take part if their original lease was for more than 21 years. In the entire building, at least two thirds of the flats need to be let to qualifying tenants and the building must not fall under Resident Landlord Exemption. Your right to manage solicitors will be able to tell you if this is the case with your premises.
As the right to manage [or RTM] is granted to the right to manage company and not the leaseholders as individuals, it is important that you form the company before serving notice on your landlord. This is to take account of the fact that leaseholders might change over time, but the company will still be in place. You will need to create Articles of Association in order for your company to be valid as this is a legal requirement. There are also other requirements that the company will need to fulfil - this is something you should speak to your right to manage solicitors about.
The solicitor can also help you to form the RTM company and assist with your obligations, which include annual returns and accounting. You will also need to appoint a board of directors for your company, who will need to be drawn from the leaseholders involved in its formation. These will be the people who will have primary responsibility for the running of the company and, once they are in place, you can invite the rest of the leaseholders who qualify according to the terms to join your right to manage company.
It is important that you follow all the necessary processes for doing this, so if you are in doubt about any part of it, you should seek legal advice to make sure you have everything in place so the process can run as smoothly as possible.
About the Author
Considering setting up your own right to manage company [http://righttomanagecompanyuk.co.uk ]? Bonallack & Bishop are specialist right to manage solicitors [http://righttomanagecompanyuk.co.uk/right_to_manage_solicitors.aspx ] and can provide you with the expert advice you need - talk to them first.
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