A new lease of life: - CentreForum

A New Lease of LifeLocal authority leaseholdersLeasehold properties with local authorities are not eligible for RTM,and their properties are managed by Arms Length ManagementOrganisations (ALMOs). These have been regarded to some extentas part of the government, so are not subject to the same scrutinyas private managing agents. In particular, much of the protectionafforded to lessees in the 2002 Act excluded local authorityleaseholders.There are also too many obstacles for those lessees who are eligiblefor RTM. Gaining the support of 50 per cent of lessees is a necessaryrequirement, but is one that is becoming increasingly complicatedto comply with. Groups seeking RTM in properties with buy-to-letowners can have significant problems merely getting in contactwith head lessees to discuss RTM, let alone reaching an agreement.In many ways the biggest problem is lack of awareness: one surveyshowed that more than 60 per cent of lessees are unaware of theirright to manage. 76 It can be relatively straightforward to get 50 percent support in a block of ten flats, but quite the opposite in a blockof 100.As already discussed, the organisation of the tribunal systemallows freeholders to object to an RTM application withouthaving to reveal their grounds before the tribunal itself. Althoughqualifying tenants have the automatic right to manage their ownproperties, freeholders can reject an application on a technicalityor incorrectly completed application form. This can be used byfreeholders employing brinkmanship by disputing a claim, hopingthat the prospect of going to a tribunal will deter leaseholders. Thisdisproportionately hinders poorer and less informed leaseholders.The fact that there are leaseholders who are not eligible for theRTM, and others who face significant barriers to accessing it, onlyemphasises the importance of having a more effective mechanismto enforce minimum standards of management through a regulatorybody.CommonholdCommonhold gives the unit-owners control over their property’smanagement through a Commonhold Association (CA). But there isa general consensus that, in terms of uptake, it has been a failure -research by the Leasehold Knowledge Partnership shows that there76 Survey by Wriglesworth Research for Urban Owners.43