The article quoted below paints a gloomy picture for tenants and leaseholders. Whilst some problems have been identified with the current system it is not the case that tenants and leaseholders have no current rights or recourse.
Leaseholders do have the right to challenge poor services and unreasonable charges in the First-Tier Tribunal (Property Chamber), previously known as the Leasehold Valuation Tribunal.
Tenants who hold long leases in flats therefore have protection relating to service charges and management. Bury & Walkers LLP have expertise in dealing with service charge disputes and proceedings within the Tribunal.
Tenants may wish to extend their protection by seeking a “right to manage” which gives leaseholders the collective right to manage their building. The landlord’s consent to this is not required and there is no requirement to show that there has been mismanagement by the landlord or a managing agent. The process relating to the right to manage can be complex but has obvious benefits giving leaseholders the right to control the management and administration of their building. A flat within a building which is managed by tenants is a more marketable property.
We have experts who can assist in setting up the right to manage company (RTM company) and guide you through the right to manage procedure.
Rip-off service charges and unfair costs paid by leaseholders and renters were in the government’s sights this week after ministers declared there was “overwhelming evidence of the harm some people experience”. On Wednesday it announced plans for a crackdown on property agents in both the leasehold and private rented sectors.