Right to Manage – Block Management – Part 3

 Right to manage – block management – Part 1 – click here

Right to manage – block management – Part 2 – click here

 Below is a letter sent last to the owners at the block we are doing a right to manage (RTM) on to keep all updated, thought you might find it interesting.

“Dear XXXX,

I am writing to keep you updated on the progress of the Right to Manage (RTM) initiative at XXXX.

An overwhelming majority (75%) of Leaseholders formally agreed to participate, and so the next steps are now in hand.  The entire process takes around 4½ months, starting with the formation of the company and the first Notice being served.

The steps are as follows, and will be co-ordinated by Young Group & Chainbow:

STEP 1:         To set up the legal RTM Company.  This will be finalised next week when the Directors are appointed.

STEP 2:         The newly formed RTM Company will serve 14 days Notice on the non participating Leaseholders formally inviting them again to join the RTM company.

STEP 3:         Following the expiry of the 14 days Notice, the RTM Company will serve a Claim Notice on the freeholder, giving them 1 month to object on specific grounds only.

STEP 4:         Following the expiry of the 1 month Claim Notice, there is a 3 month waiting period before the control is passed to the RTM Company.

For clarity, it is strongly recommended that all service charge demands continue to be paid when due to XXXX.  This includes the next Demand due which will cover the period 1 July 2010 to 31 December 2010, as XXXX will be responsible for the majority of the dates it covers, before the changeover process is completed.  

When the new Managing Agent is appointed by the RTM Company, there will be an audit of their accounts for this building and the monies held will be transferred.

Chainbow, the proposed new Managing Agent, is experienced in taking over the block management from XXXX.  Chainbow also strongly recommends that all service charge demands are paid in full to the current Managing Agent.

By following the above steps, the new Managing Agents should be in place by October 2010.

I very much look forward to a successful and smooth transition process that will result in XXXX being managed in a more cost efficient manner and to a higher standard for the benefit of all who have invested in property at the development.”

The support has been fantastic – the process moves forward. To be continued . . . part 4 coming soon . . .

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