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Consulting with Ashley Wilson
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The Right to Manage (RTM) was introduced in 2002 giving flat owners the ability collectively TO take over the management functions in respect of their building without having to prove fault on the part of those responsible for management under their lease (usually their landlord) or paying a premium.
The deferment rate is relevant to residential leaseholders whether they are a house owner seeking their freehold, a flat owner seeking a longer lease of their flat or the freehold to their building acting in concert with other flat owners.
The Government has now opened a consultation in this regard titled “Moving to commonhold: banning leasehold for new flats”.
The consultation forms part of the next phase of leasehold reform and sits alongside the ongoing implementation of the Leasehold and Freehold Reform Act 2024 (‘The 2024 Act’) and the recently published draft Commonhold and Leasehold Reform Bill (‘The Bill’).
This seeks opinions from leaseholders, landlords and managing agents about how the Bill’s proposed ban on new residential leaseholds should be implemented in practice.