How to appoint a new Managing Agent…

8th Jan 2021

Are you experiencing…?

If so, then you are not alone. More than two thirds of leaseholders report being unhappy with the service provided by their managing agent.

How do I change management?

It all depends how your lease is structured

1. Tri-Party Lease– Three parties, the freeholder/landlord, the management company and the first leaseholder/property owner.

Resident Management Company Director

If your block has a Management Company – good news – the Directors (leaseholders who have volunteered to become Directors) have the authority to change to a new managing agent. If you are not a Director but want to become one, you can.

Becoming a Director is now easier than ever. If there is a Board of Directors already in situ and you wish to join the Board, you can simply make a casual request and, if endorsed by the existing Board, become a Director from that point (on a casual basis until the next AGM). Should your Resident Management Companies AGM be forthcoming, you should receive a formal invite to attend being a shareholder. It is typical to receive an application to become a Director along with your AGM notice. If you do not receive an application, simply put your request to become a Director in writing to your Board and it will be voted on at the AGM.
After the vote has been completed and you have been officially voted in as a Director, you will need to fill out an AP01 form from Companies House to formally register yourself.

2. Two-Party Lease– The freeholder/landlord and the first leaseholder/property owner.

Right to manage (RTM)

Claim your Right to Manage. 50% of the leaseholders will need to agree to become members. The Right to Manage lets you and the other leaseholders take over certain management responsibilities from the landlord without having to prove bad management. Setting up an RTM company allows the ability to appoint their own Managing Agent and control the insurance. Blocsphere are very experienced in bringing in successful RTM claims and can guide you through an RTM to help you take back control of your leasehold property.

Asking Freeholder or Landlord

Asking the Freeholder/Landlord to agree to change managing agents. This could be a difficult or awkward conversation so you must present strong reasoning for doing so.

Application to Tribunal

Make an application to the Tribunal to appoint a manager. If you can demonstrate poor management then this procedure can work for you.

3. Tri-Party Lease with Managing agent named in the leases.

Three parties, the freeholder/landlord, the Managing Agent and the first leaseholder/property owner. This is common in larger developments. There is often a clause written into the lease to exit the agreement.

Changing property management companies is not that hard of a process, so if you’re looking at transitioning over to a new management agent or would like to speak to us in terms of managing your own property – we’d love for you to get in touch with us at Blocsphere!

Click here to receive a no obligation block management fee estimate.

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