Forming a Right To Manage company can be very beneficial, allowing leaseholders to have full control over how their building is managed.
If you’re thinking of forming a Right To Manage Company, there are a number of costs you need to be aware of. It is then up to you and your fellow Leaseholders, whether you believe the costs and process to be worth continuing to press ahead with Right To Manage.
Right To Manage Company Formation Costs
As with forming any company, there are costs involved. For example, you may wish for a managing agent to form the company on your behalf, saving a lot of time as well as ensuring compliance. Costs for this range between managing agents, get in touch for a quote from Scanlans Property Management.
During the formation process, you will also incur Land Registry costs, charged on a per flat basis of £3.
You will also be subject to admin costs, including the postage of letters to other Leaseholders and the Landlords.
During the process, the Landlord may incur costs of their own. As Right To Manage doesn’t need a reason, the Landlord may be out of pocket despite them not doing anything wrong. It is therefore mandatory that the Right To Manage company reimburses any costs that the Landlord incurs, whether the Right To Manage Company is incorporated or not.
In some cases, you may encounter resistance to the Right To Manage company from the Landlord. In this case, a Tribunal may be required to settle the dispute. If the Tribunal rules that the Right To Manage company does not have the right to manage the building, then those associated with it will be liable for all costs relating to the Tribunal.
Following on from the Right To Manage formation, the Right To Manage company will be responsible for all servicing, maintenance and accounting of the building. This can be passed to a managing agent, who will need to be paid for the provision of their services. It is important to therefore budget the total costs involved in maintaining the building, and then recouping the costs via a service fee from the leaseholders.
At Scanlans Property Management, we have the team and experience to support Residential blocks that require a managing agent. From booking repairs to scheduling regular maintenance, as well as ensuring the building and company adheres to legislation and regulations, we have what it takes to ensure the smooth management of your building.
My Scanlans will give you all the latest updates, documents and status on your property from your Personal Property Manager service.