MEETING TO DISCUSS RIGHT TO MANAGE TUESDAY 31st JANUARY 2017 AT 7pm ANNIE BARTLETT ROOM, COTHAM PARISH CHURCH Attending Martin Smith, Treasurer, HKRA (Flats) Committee Flat 217 Ann McPhee, Secretary, HKRA (Flats) Committee Flat 239 Christine Pankhurst, HKRA (Flats) Committee member Flat 249 Lizanne Harland, HKRA (Flats) Committee member Flat 232 Dave Watson, HKRA (Flats) Committee member Flat 275 Don Brown, HKRA (Flats) Committee member Flat 259 Les Cooper, HKRA (Flats) Committee member Flat 209 Matthew Montagu-Pollock, HKRA (Flats) Committee member Flat 235 Russell Murchie Flat 234 Di Watson Flat 275 Peter Barber Flat 240 Peter Anderton Flat 211 Raj Kapoor Flat 225 Kumari Kapoor Flat 248 Yvette Mayer Flat 250 David Langston Flat 276 Georgina Connolly Flat 276 Philip Cox Flat 252 Andrew Bell Flat 227 Sheelagh Bell Flat 227 Mark Griffiths, solicitor Nathan Hockenhull, Crown Leasehold Management 1) Welcome and introductions Briony Waite welcomed everyone and explained that the meeting is about taking control, not necessarily dissatisfaction with Hillcrest Estate Management. Right to Manage would enable lessees to be part of the decision-making process concerning site projects and management of the development. Long-term outcomes require careful, considered planning and management needs to be pro-active, not just reactive. 2) Reasons for deciding to consider Right to Manage (RTM) She explained that currently HKRA (Flats) has no control over the selection of the estate management company and the level of service charges. The estate management company is not answerable to the lessees. A rather feudal structure exists currently, whereby the parent company of Hillcrest holds the head lease and is able therefore to appoint Hillcrest unchallenged as the estate managers. Since the Commonhold and Leasehold Reform Act of 2002, there are procedures which enable lessees to acquire and exercise rights in relation to the management of the premises. She has invited two people to talk us through the necessary procedures to set up a Right to Manage company and take control of the High Kingsdown flats development. 3) Procedures involved Mark Griffiths, solicitor, explained that the purpose of Right to Manage (RTM) would be to take control of our building. The process is set down by legislation by the 2002 act and as long as all the boxes are ticked, it can go ahead. Two thirds of the leases must be long leasehold, which all ours are. Then 50% of the lease-holders must agree to participate, ie: vote for RTM. All lessees would be members of the RTM company and a board of directors would be set up. Memorandum and articles of association would be set up, by statute for RTM companies, for the company. The company would be a company limited by guarantee. In response to an enquiry by Les Cooper, Mark Griffiths confirmed that there would be one vote per lease, so landlords owning multiple HK flats would have more than one vote. Briony Waite informed the meeting that, thanks to Martin Smith efforts, we now have the addresses of all lessees. Mark Griffiths said that the first step would be to issue a notice of invitation (notice inviting participation) in the form of a letter to all lessees but suggests that this is not done until there is some level of interest in the concept. There are costs and liabilities involved. Lessees can challenge the procedure. Notices must be served correctly or the current leaseholder could challenge the procedure. Replies to notice of invitation should be received within 14 days. The lease holder can still select the buildings insurance company. Once the Right to Manage has been accepted, the RTM company can select the estate managing agent. The managing agent would have control of funds, not the RTM company and its officers. A question was asked about the purchase of the freehold but Mark Griffiths expressed the opinion that there would be no point, nothing to gain and would cost lessees at least a thousand pounds per flat. Nathan Hockenhull said it was a straightforward procedure, once the criteria were met. There would be costs to setting up an RTM company of around £2000 but this cost could be spread over all lessees, if they are willing. Usually, service charges may not be spent on this. The founder members may well choose to become directors. The lease holder may challenge at this point if the correct procedures have not been followed. If all is in order, a claim notice is issued on the freeholder who has 28 days to respond. If the freeholder, disagrees, the matter can be taken to tribunal. In Nathan’s experience, it is better to receive a pro-active “No” rather than have the notice ignored as this can indicate that the existing leaseholder and managing agent may not be fully co-operative with the transfer procedure. It is necessary to be realistic about time scales, especially when major works are already in plan. Consideration should be given to the dates when service charges are set. The meeting finished about 8.15pm.
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