By Liam Parker, Director, Pure Block Management
As a business which specialises in looking after the interests of hundreds of residential property leaseholders across East and North Yorkshire and Lincolnshire, we know the implementation of the 2024 Leasehold and Freehold Reform Act cannot come soon enough for so many.
Already approved following a Parliament vote last year, the Act is still to be fully implemented and enforced by the Government, leading to the frustration of many residents’ groups.
However, when finally approved by secondary legislation, it will introduce a raft of legislative changes aimed at improving the rights of leaseholders in the UK.
These will include banning developers from selling new houses as leaseholds, making it cheaper and easier to extend leases, and increasing the standard lease length to 990 year, up from the current 90 years for flats and 50 years for houses.
It will also demand greater transparency over costs to leaseholders, including service charges, administration charges, and buildings insurance commissions.
However, one of the most significant changes, in our view, will come in leaseholders being given more control of their properties, and specifically the right to control their buildings' management, and collectively buy the freehold.
Helping leaseholders apply for the Right to Manage developments
As a business, we see many residential developments where management companies are appointed by the freeholders of the property to manage the block in their best interests, rather than in the interests of the leaseholders.
It often leads to a gradual decline in standards over the years, a lack of continued investment, and ultimately, increasingly frustrated leaseholders.
Until now, many leaseholders have been unable to challenge this situation, as the law has stated that, if a building has more than 25% commercial space, leaseholders cannot apply for the right to take over the management of the building (Right To Manage).
However, under the new 2024 Act, this limit will be raised to 50% of commercial space, making the Right To Manage process much more accessible for leaseholders in buildings which also include retail or office spaces, usually on the ground floor.
Securing the Right to Manage gives leaseholders the responsibility for things like collecting and managing the service charges, carrying out maintenance, repairs, and services, and allows them to decide on contractors and service providers, ultimately putting them in control of the quality of work carried out.
It also allows leaseholders to take over management without having to buy the freehold, which can be more complex and costly, and a better option for those who do not wish to, or cannot afford to collectively enfranchise.
At Pure Block Management we specialise in helping leaseholders set up Right to Manage (RTM) companies, allowing them to then either manage the building directly themselves, or pay a managing agent of their choice to do it.
We know there are many groups of leaseholders now awaiting the implementation of the new legislation to do just this, and we have been advising leaseholders ahead of the Act being enforced, with a view to helping them establish a RTM company, and to take on the ongoing management, including everything from service charge management to property repairs.
A reputation for first-class service
With over 25 years’ experience of managing shared residential developments across Yorkshire and Lincolnshire, and a reputation for first-class service, Pure Block Management is the ideal property management partner to help you take control of your block.
For advice on the 2024 Leasehold and Freehold Reform Act and the Right to Manage (RTM) call our team on 01482 326677 or email hello@purebm.co.uk
