To qualify for the right to manage, the building must be self-contained or, if part of another building, it must be capable of being redeveloped independently. The building may be part-commercial but the non-residential part must not exceed 25 per cent of the total floor area. The total number of flats held by qualifying tenants must not be less than two-thirds of the total number of flats contained in the premises.
Qualifying tenants representing at least 50 per cent of the flats in the building must become members of the RTM company before the Claim Notice is served. If there are only two qualifying tenants, both must become members of the RTM company.
It is vital to the right to manage process that the Company’s Statutory Registers are written up prior to the service of the Claim Notice.
The Act specifies detailed rules relating to the right to manage. Supplementary regulations prescribing the content of notices to be served under the Act are contained in the Right to Manage (Prescribed Particulars and Forms) (England) Regulations 2010. RTM companies are subject to the provisions of the Companies Act 2006.
These notes are intended for general guidance only and individual advice should be sought as appropriate.
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