Executive Summary
Due to abnormal rising service charges, continued reduction in service and no accountability or transparency, a majority of leaseholders/owners would like to enact the Government approved scheme of Right-to-Manage.
The Levett Square Residents Association have worked with industry specialists and solicitors to incorporate the LEVETT SQUARE RTM COMPANY LIMITED, and you, as a leaseholder/owner are invited to join as a member. Being a member enables you to vote on ongoing management of Levett Square, reducing service charge costs and improving service with greater accountability and transparency.
Please visit https://www.levettsquare.com/rtm to join the RTM Company and vote for positive change at Levett Square.
Note - only leaseholders/owners qualify for membership/voting.
Introduction
Through multiple Residents Association meetings, it has become clear that there is an overwhelming agreement that as a group of leaseholders/owners we would like to pursue a course of action to initiate the government backed scheme and our right, Right-to-Manage (RTM).
Many new-build developments around the UK are switching to RTM. The ever growing list of positives include:
The managing agent (MA) is accountable to the leaseholders/owners, not the freeholder
Increased transparency between leaseholder/owner and managing agent
Increased property value
Increased overall quality of service
Decrease in service charge cost
Greater control over spending
Enhanced communication and relationship with managing agent
Option to purchase freehold
The RTM is free to select the best suited managing agent
Background
The Freehold of Levett Square (consisting of Quadrant House, Advent House, Chancery House and Verdant House) is now owned by This is G2 Limited. The current managing agent, HML Andertons Ltd, is written into our leases as the ‘Management Company’. We, the leaseholders/owners and payees of running costs, have no say on how things are run or how our money is spent. We are legally forced to pay any sum of money that the managing agent demands from us.
Many leaseholders/owners feel that they are not getting the best value for money from the service charge. Because the managing agent passes on all the costs to us, they do not have an incentive to source competitive quotes for work. As such the service charge has been increasing 20%+ year on year, diminishing residential and investment cash flow.
The Residents Association has instructed a reputable firm (HAUS) to assist with the RTM process. HAUS have been recommended by local developments and have a wealth of knowledge, equating to 100% success rate with the RTM process.
HAUS have agreed to fund the RTM application with absolutely no financial risk to leaseholders/owners. We have been in dialogue with them for over 6 months now and have a great deal of confidence in their ability to successfully complete the RTM process.
Cost savings
As leaseholders/owners, it is important that we know we are getting value for money and not being taken advantage of. HAUS have obtained comparable costs for the main items in the service charge budget and can demonstrate that annual running costs can be reduced by c. £600 on average.
How much and how long?
No money is required up front and there will be no cost to us if the process is unsuccessful. The whole process will take approximately 6 months from start to finish. Once successful, we expect the final costs to be no more than £60 per flat. This cost covers the cost of setting the company up, downloading all title registers, creating the membership forms, sending out notices of invitation and the notice of claim and liaising with the Freeholders solicitor. It also covers the freeholders’ legal costs.
Chances of success
For a successful RTM we must meet certain criteria. We are undertaking a single RTM Company that will cover all four buildings as they are connected via the underground car park (a requirement of the legislation is that connected buildings must form part of a single RTM Co). The commercial space must also be less than 25% of the footprint and all leases must be ‘qualifying leases’. We are compliant with these criteria.
Who is making this happen?
We are a group of leaseholders/owners in Levett Square. We are all volunteers, and don’t receive any payment or expenses – we simply want to see Levett Square well-managed and promote value for money from our service charge. We are currently powerless to make any changes to how the building is run and undertaking an RTM is the best method to support a managing agent who works in the interests of leaseholders/owners.
Next steps - Invitation to LEVETT SQUARE RTM COMPANY LIMITED Membership
To trigger the Right-to-Manage application, we need to obtain a minimum of 50% membership of the overall number of units. One flat equates to one vote. The RTM Co is a non-trading company limited by guarantee with a limited liability of £1.
Your membership is your vote. By securing a 50% membership, the LEVETT SQUARE RTM COMPANY LIMITED has the right to proceed with RTM.
Please visit https://www.levettsquare.com/rtm to join the RTM Company as a member and vote for positive change at Levett Square.
Future Communications
If you haven't already, please sign up to the Levett Square Residents Association mailing list at https://www.levettsquare.com/mailing-list.
If you have further questions, please don’t hesitate to email the Residents Association at contact@levettsquare.com
Best regards and many thanks,
Levett Square Residents Association