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Right To Manage (RTM) - Other Costs & Information

There are a few other points which you must know before proceeding with the right to manage process.

The freeholder’s reasonable legal costs

If you go through the process, you are liable to pay the reasonable legal costs of the freeholder. These, in our experience are claimed in 20% of all cases so you need to ensure you are prepared for the posibility of additional costs. Typically, we would expect costs of consideration of the claim notice to be no more than £700+VAT but they can be higher for larger blocks. This is, however, a charge levied by the freeholder’s solicitors and so we would have no control over this. If they do levy a charge and you consider it too high then you can apply to the Leasehold Valuation Tribunal for them to determine this.

Leasehold Valuation Tribunal

If a counter notice is received then an application must be made to the Leasehold Valuation Tribunal. There is no alternative to this, even though it is highly likely that the freeholder will have no valid reason for the counter notice. Canonbury charges £500 including VAT for the preparation of the application. As we have all the information to hand, applications are likely to be cheaper and more accurate than those prepared by a solicitor. The application should be made immediately as there are time limits, so we would advise that you decide promptly. We have not had any unsuccessful claims, however, in the rare event that your claim may not be successful at the tribunal, you would be liable to pay the reasonable legal costs of the freeholder in attending the hearing. We would estimate that these are likely to be around £1500+VAT but in some cases they could be higher. Canonbury always asks the tribunal to consider the matter on the papers, however, if representation is needed (for example if the other side wants a trial) then this can be arranged, however, it will cost around £1500 including VAT for us to attend.

Further Information

Canonbury Management has a wealth of knowledge and experience in this field and much of this information is on our website. We constantly review the data on the site following reviews of case law, however, if you can’t find the answers you are looking for, please give us a call or write an email and one of our experienced staff members will get back to you.

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