What can you do if your freeholder isn’t doing their job?
Owning a leasehold can pose challenges, particularly when your freeholder neglects their responsibilities. But, as leaseholder in the UK, you possess the means to safeguard your rights and property interests. In this blog post, we will explore primary avenues available to you when confronting a negligent freeholder, with a focus on “Right to Manage” and “Freehold Purchase.” Disclaimer alert! We are not legal experts and have written this from our own experience and research as a way to advise others. We strongly advise you seek professional guidance.
Right to Manage
The Right to Manage (RTM) is a legal mechanism empowering leaseholders to assume control of their building’s management, irrespective of the freeholder’s performance.
In brief, the steps to exercise your Right to Manage include:
- Sharing thoughts: If you own a property within a building with multiple leaseholders then you need to speak to them first. Hopefully they are of similar mindset. The majority of the leaseholders have to agree and want to exercise the Right to Manage.
- Serving a notice: Seek advice from a solicitor and instruct one. They will serve a formal notice notifying your freeholder of your intent to exercise the Right to Manage.
- Consultation and negotiation: A consultation phase allows both parties to discuss management terms and address concerns.
- Forming an RTM company: Leaseholders create a limited company designed for property management, taking charge of key decisions.
- Taking control: When negotiations succeed, you seize control of property management. Ground rent and service charge are still payable to the freeholder.
Freehold purchase
For leaseholders seeking greater control over their property and management, buying the freehold is a viable option known as Leasehold Enfranchisement.
Key steps include:
1. Qualification: Leaseholders meeting specific criteria can collectively purchase the freehold. Qualification hinges on holding a long lease and meeting residency requirements. Again the majority of the leaseholders need to be in agreement and want to purchase.
2. Valuation and negotiation: An independent surveyor assesses the property’s value, and negotiations with the freeholder commence to determine a fair price for the freehold.
3. Formal notice: Leaseholders serve a formal notice to the freeholder, expressing their intent to acquire the freehold, complying with statutory requirements.
4. Purchase the freehold: When both parties agree on the price, the leaseholders acquire the freehold, becoming the rightful property owners.
Other options
Beyond RTM and freehold purchase, there are additional options, including appointing a manager through the First-Tier Tribunal or seeking redress through a court. These options can be complex and costly, underscoring the importance of solicitors specialising in property and leasehold law.
Conclusion
UK leaseholders possess legal avenues to address the issue of negligent freeholders. Whether you opt for the Right to Manage or Freehold Purchase route, comprehending your rights and responsibilities is essential. The Gov.uk website gives you some basic guidance as to your rights and professionals to approach. We also found the Leasehold Advisory Service as a good starting point. Though these only got us so far. It’s highly advisable to consult a solicitor specialising in these areas to guide you through the process, safeguard your rights, and make the best decision for your unique situation.
Your property is an investment, and understanding your rights ensures its protection.