Leaseholders! You CAN change your managing agent. This article explains how. Many leaseholders don’t realise they are in charge and can bring in new management. Too many assume the management comes with the block.
Getting rid of poor property management companies is not easy. If it were you wouldn’t be reading this. Before we get to the action plan we need to agree first principles: what exactly is bad management? Time and time again it’s the same issues. Over to the Aaagh!-ometer.
The Aaagh!-ometer
|
Gripe |
Aaagh!-ometer Score |
| Failure to answer the phone and respond to messages |
9/10 |
| Lack of onsite presence |
6/10 |
| Unclear service charge bills |
7/10 |
| High insurance premiums |
8/10 |
| Poor day to day services like gardening and cleaning |
7/10 |
| Not knowing where your money goes |
7/10 |
If your blood is beginning to boil – it’s no surprise. Unfortunately these issues are common. The list reflects our experience as an experienced property management company in London. It also includes some of the leaseholder research conducted for the London Assembly’s report ‘Highly Charged’ – an investigation into leaseholder service charges in the capital.
What Can I Do About Bad Management?
Now we know what makes for bad block management what can we do about it?
There’s something called the Leasehold Valuation Tribunal (the LVT is a statutory tribunal, a kind of court) which can help, but it generally only tackles disputes between the leaseholder and their landlord – not the managing agent. There’s no established recourse in law to tackle bad managing agents. And, in spite of a call by many in the sector, managing agents have no regulatory body.
The managing agents’ trade bodies like ARMA and IRPM offer some support but they don’t have the teeth of a regulating authority. To further compound the problem unlike most service users leaseholders cannot simply vote with their feet and switch suppliers.
Change Your Managing Agent: The Plan
First things first – do you have the right to ‘hire and fire’ your managing agent? If your block has a Management Company (see sample lease below) – good news – the Directors (block residents who have volunteered to become Directors) have the authority to change your new managing agent. If you’re not a Director but want to become one, you can. Read on…
First let’s assume there is a management company called Rose Court Management Company Limited. When you bought your flat you would have been made a shareholding member of this Limited Company. As a shareholder of Rose Court Management Company Limited you are important! Shareholders, (aka members), are ‘senior’ to Directors. (But being a Director of a Limited Company is a very responsible position. More of that later).
The Hierarchical Structure Of A Resident Management Company
The Directors are often active residents within the block who wish to get involved in the management. The Directors are appointed by, and answer to, the shareholders. The Directors instruct the managing agent.
As an example: if you, as a shareholder of Rose Court Management Company Limited, were for whatever reason unhappy with a Director, say Robert from Flat 4, you could call a meeting and ask for a vote seeking Robert’s removal. The process is democratic though. If the majority of shareholders voted in favour of Robert – Robert stays on as a Director. The point is, it’s the shareholders’ call.
How Do I Become A Director?
As mentioned where there is a Management Company in place you can seek the support of the shareholding members (your fellow residents) to become a Director. First, you should try asking the existing Directors for their support to appoint you to the Management Company Board. Remember Directors are kind of role models for the block so if you are in breach of your lease with, say, arrears you’ll have to fix that first.
Sometimes no one has put themselves forward to be a Director and the managing agents have assumed the role. In which case you can write to your managing agents and instruct them to convene an Annual or Extraordinary General Meeting (AGM or EGM) with the business being your appointment as a Director. The managing agents will then write to everyone in the block informing them of the AGM/EGM and your proposal to be voted in as a Director. Your neighbours can then attend the meeting to vote or vote by proxy.
If you prefer you can of course ask a couple of other leaseholder neighbours to become Directors too. It can help to spread the responsibilities.
Lobbying your neighbours and sharing your plans for the block in the run up to the meeting is an effective way to win support for your appointment. You’ll find leaseholders are only too happy for someone to take charge of issues at the block.
Once the meeting’s been agreed lobby your neighbours for support. Leaseholders can vote in person or by proxy.
Bear in mind the Director role is a very responsible position and is governed by, amongst other legislation, the Companies Act 2006. You’ll be legally responsible for the financial side of things as well as health and safety and so on. Make sure you are insured too.
Does My Block Have An Established Management Company?
Leases with a management company are often called tri-party because there are three parties to the lease: the freeholder, the Management Company, and the leaseholder(s). Like this:
|
Pycroft Limited is the freeholder. Principal Lofts Management Company Limited is the Management Company. And Jon and Sarah are the leaseholders.
To find out if your block has an established Management Company just check your lease. If you haven’t got a lease get one from the solicitor who carried out your property purchase. Or get one from the Land Registry.
Usually all the leaseholders are members of the Management Company.
As a Director of the Management Company you have the authority to change managing agents. Obviously you’ll need to work with the other Directors and company Members to effect the change. Make sure you’re prepared. Timing can be important i.e. making the change at the end of the service charge year is sensible. And what notice is in the current management agreement? What else do you need to do to make sure the transition is seamless?
What If My Block Does Not Have A Management Company?
You still have options.
Under the Commonhold and Leasehold Reform Act 2002 you and your neighbours can get together and apply for the Right To Manage. There are some legal criteria you need to meet. Find out more on our Right To Manage page.
Alternatively you can club together with your neighbours and buy the freehold to your property. Owning the freehold gives you and your neighbours the ultimate authority.
Or under Section 24 of the Landlord and Tenant Act 1987 where the management of a property by the landlord is considered unsatisfactory and the tenants are unable to exercise the Right To Manage and there is no other remedy available to the tenants, likely to improve things, you can apply to the LVT for the appointment of a manager.
Provided the LVT is satisfied that the case warrants such action, it may make an order to replace your Property Management company with a manager named by the LVT.
The new manager need not be a managing agent, but could be a lessee or other responsible person. The manager could delegate tasks to a managing agent, but ultimate responsibility remains with the manager appointed by the LVT.
Remember if you feel you’re block is suffering with a poor managing agent you CAN do something about it.
160 comments
Vijay
Hi James,
Our existing Management Agent failed to address the EWS1 and Waking Watch issues raised by Leaseholders. Director is not interested with the issues that are on going. We Leaseholders now want to get the meeting scheduled with agenda. One of them is resolution to approve new Directors. The Accounting end date is Jun 20, 2022. We want to send a notice for General Meeting. Please could you send us a template that I can use to take this further.
Thanks
Vijay
James Cooke
Hi Vijay
Thank you for your email. I understand the issues.
You write to your managing agents and instruct them to convene an Annual or Extraordinary General Meeting (AGM or EGM) with the business being your (or other owners) appointment as a Director.
Your managing agents must then write to everyone in the block informing them of the AGM/EGM and your proposal to be voted in as a Director. Your neighbours can then attend the meeting to vote or vote by proxy.
At the same meeting you and other owners can have a vote of no confidence in the existing directors and have them removed. You do not need a majority of everybody that lives in the block; you simply need a majority of everybody that attends the meeting.
You do not need any kind of template etc you simply instruct your current managing agents to set up the AGM/EGM.
I hope that makes sense but if not give me a call or send me an email.
Kind regards James.
07715 328711
Peter Taylor
I am a Director of the property management company for our development (36 flats in all). After many years of generally good service from our current managing agents we are now proposing to change our agents as issues have arisen which are not being resolved (we have had a meeting recently with our preferred replacement agents and are happy to proceed with the change).
Is there a formal process which we need to go through in order to effect this change? I am thinking in terms of a ‘proper’ letter sent by post to our current agents notifying them of our decision and giving them a ‘period of notice’ (say three months – or could this reasonably be less?), but if we need to follow a more ‘structured’ procedure, please could you advise?
Best regards,
Peter Taylor
James Cooke
Hi Peter You will have seen the letter template I emailed to you. Good luck!
Malcolm Campbell
Can a managing agent also act as letting agent in the same block of flats — would that not be a conflict of interest
James Cooke
Not at all. So long as they deliver great customer servuce and value.
Klace
Hello, I live in a property where there are 5 flats – all share of freehold. Before moving in there was a precedent set where no expense accounts were produced – this was counter to the lease however all residents were happy with this – this was the case from 2007. The external managing agent of the time was invoicing for service charge however the funds simply went into a blackhole and no accounts were ever given to the leaseholders (who are also the share of freeholders). A number of years ago the freeholders fired the external management agent and took management upon themselves. Since then all reciepts have been kept however no formal accounts produced – spreadsheets of expenses have been kept and basic debtor accounts. The newest share of freeholder has now demanded accounts for a number of years back – he moved in 2016 and is demanding accounts from 2017 onwards. If 4 of 5 flats are happy with what was done and are happy to follow the historical precedent where do we all stand?
Zeljka Zorzin
Hello
I live in a Victorian conversion , there are 4 flats in the building. Few years back we went to LVT and won our case against freeholder’s managing agent. We then formed RTM and appointed a managing agent of our choice. They were ok in the beginning but after two years our service charges are the only thing that is increasing and our building has fallen into disrepair, e.g. leak damaging communal corridor for over two years that hasn’t been repaired etc. I pay 30% of the total bill this amounts to £2620 p.a. which I feel is quite high, especially because I don’t see VFM in return.
I am aware that we can change and appoint a new managing agent but I would like to ask is there any clause in the law to make our old managing agents actually do the work they were supposed to do over the two years that we were paying them for. I don’t want to let them off if I can make them earn their money. I hope this makes sense. Thank you.
James Cooke
Hi Zeljka sounds frustrating – sorry. Your best bet is simply to fire them and bring in new agents. Good luck, James.
Penny Q
Currently our block has a rogue managing agent that a director appointed without telling anyone. This director uses the agent for their RTM property and they seem to have a ‘deal’ as he has the penthouse and gets funds for whatever he wants.
He signed a contract without telling any of us giving the agent authority to do invoice for anything up to £700 per item without having to seek permission.
I since discovered that the agent has a history of fraud, who has been found to have overcharged on works and service charges by a tribunal for over £40k which they were forced to repay. They dissolved the company and set up a new one. Since then, they have been found to have mishandled over £700k this time and the block has been forced to settle out of court so other clients won’t pursue them.
I and others obviously want to get rid of the agent, but the director who is compromised won’t allow it. What is the best way to get rid of them both. We have managed to get some new directors on board although the agent and director stalled for over 3 months.
Now the director and agent are trying to pursue some building works (director is a buy to let landlord) with a cheap quote who happens to be a mate of the agent, who also just set up a company with no accounts. The builder who has a past of setting up companies and dissolving them within 2 years.
How do we stop this? What we want is control back, and to get the works done with reasonable quotes and not to pay out backhanders to support the agent who has also added fees to everything, and refuses to discuss issues and refers you to a debt collection agency if you challenge any invoices.
RTM is a possibility but with so much hostility it is better to have an interim agent, because much of rhe block (10 ) are made up of buy to let landlords who only care about happy tenants, and are happy to force others to pay their share.
They are threatening to go ahead with the works, and use bully tactics to force leaseholders to do as they say. The agent also refuses to provide an up to date account of what he has spent, and said if we want to have any EGMs or AGMs out of hours then he charges around £300 per meeting, so people should accept what he chooses to do to save themselves money.
Please advise on the best way to proceed. I have messaged the other leaseholders, and only two have responded. We want to change managing agents with a good reputation so the other leaseholders can’t object, but may need to go to tribunal to do this.
James Cooke
Hi Penny Are you saying the Director(s?) do/does not support a change in agent? Happy to chat through. James. 07715 328711.
Justin
Hi James, we are a block of 50 flats above 100,000 sq ft of offices (more office space than flat space). We are all on long leases. The landlord (of the offices and the flats) has appointed an appalling managing agent for the residential side and the majority of flats would like to change. Is this possible and how would we go about this, thank you.
James Cooke
Hi Justin thanks for you message. Are any of you directors (of something called the ‘management company’? If so it’s very easy – a letter of termination from the Directors. If there isn’t a Man Co then you will need to win your Right To Manage. Pretty easy but longer (say 6-8 months).Hope that helps? James. 07715 328711
Sharon Hills
Hi James and thank you for your response. As mentioned there are 3 directors 2 of us want to manage the 4 flat block ourselves and sack the current managing agent. The 3rd director is totally against this – what things can she do to prevent us apart from being hostile – is there anything legal wise that she can use to stop us? Are there any “must do’s” that we have to cover…….
Many Thanks
Sharon
James Cooke
Hi Sharon there is nothing she can do – she is outnumbered. Thanks James.
Sharon Hills
Hi James
We are about to vote on taking over the management of our block. The current management company 2 yrs ago decided that the soffits and fascias need replacing . Only now they want to instruct a company to start the job. out of r directors want to defer this until we have taken over and review the tradesmen.
Is this something we can do now . I know it may seen straight forward but the 3rd diretor is talking court injunctions , legal action etc. I don’t see how that is possible as the management company are supposed to be working for us or have I missed something.
Thanks
Sharon
James Cooke
Hi Sharon: majority rules. So if, say, there are three Directors and there’s a ballot the two who agree/vote together win. Thanks, James.
Sharon Hills
Hi James – me again , if we give notice to the managing agent will the building insurance become void !and I would then have take out new insurance and claim back from the leaseholders – if so,how will it stand if works are due to be done ! This 3rd director is very hard work – she is trying everything to trip me up !
Many thanks
Sharon
James Cooke
Hi Sahron Giving notice does not end the insurance. Thanks, James.
Sharon Hills
Hi James
Would you mind if I called you?
James Cooke
Sure I’m on 07715 328711.
Thanks, James.
Sharon Hills
Can we sack the agent in the middle of a section 20 if works have not started.
James Cooke
Hi Sharon
Provided a majority of Directors agree – and they are acting in the best interests of the company – then yes.
Thanks, James.
Sharon Hills
Hi James
We were served a Major Works Section 20 2018
Estimate has gone up considerably – can we as Directors of the company who is the landlord challenge the agreement made by the surveyor and management agent and collect our own quotes ( which we have and they are cheaper and we have checked credentials). The 3rd director is pushing for the work to be done now almost 3 yrs later – couple of months won’t make any difference, can we make a vote of no confidence in their choice. Many Thanks
Sharon
sharon Hills
Hi James
I have read through many of the questions asked here and very interested by your responses and ask if you can advise on our situation.
I would like some clarification on Right to Manage and if this is the only option for us or can we just give notice to the Managing Agent we already have.
We fit all the criteria to use the Right To Manage route but feel as we are already a company then we should be able to give notice.
Block of 4 flats the LTD company is the landlord where 3 directors are all the leaseholders. Before 2 became directors the only one there instructed a managing agent to take over the running of the block ( previously run by the LTD Company/Landlord.)
The managing agent are not performing as they should and 2 of the directors now want to self manage. Do we have to set up another company and use “ Right to Manage” route or can we vote as already part of a company to give notice to the existing managing agent and take back control of the building our selves.
1 director owns 1 flat and for the change
1 director owns 2 flats and for the change
1 director owns on flat and against the change. ( they have a family interest with the existing managing agent)
Thank you
Sharon
James Cooke
Hi Sharon Thanks. There is no need for a Right To Manage. If the majority of Directors wish to change the management that’s it – game over. Thanks, James.
Paul Hunt
Hi James
I own a flat and share of Block48 Ltd which owns the freehold of the block (48 flats). There are 46 owner/shareholders of Block48 Ltd.
The directors have lost confidence in the managing agents, Dodgy Ltd, as they are not returning their calls or emails and have stopped paying the outgoings, despite the fact that there was £100,000 in the bank on the last balance sheet of Block48 Ltd.
Our block of flats is falling into disrepair and the directors say they our bound by a contract with Dodgy Ltd to Manage our block until February 2022 and can not give notice until November 2021.
One of the owners has suggested we could use an RTM to move the freehold from Block48 Ltd to NewBlock48 Ltd which would release us from the contract with Dodgy Ltd. The main concern of the owners is how to transfer the £100,000 which is in an account controlled by the managing agents, Dodgy Ltd.
Please can you offer some advice
Paul
James Cooke
Hi Paul Your directors simply need to write a letter of termination with the managing agents. It sounds like there mnay have been a breach of the agreement so it should be fairly straightforward. But to be sure it’d be best to talk things through on the pohone. Kind regards, James. 07715 328711. Or 01277 812905.
Paul Warren
I appreciate that this site relates mainly to Leashold Management Companies, but I hope you can help. I am a resident on a Freehold site with 8 houses. Each house has a recently appointed Director within the current Managment Comany and the Company owns the common land. A Managing Agent is employed, but as Directors the residents wish to take on the management of the Company ourselves. Can we “sack”the Managing Agent by letter/AGM-EGM as you suggest elsewhere and is there any advice you can odffer as to what we need to have in place to be succesful and legal!! Thanks. Paul
James Cooke
Hi Paul So long as more than 50% of Directors arre in agreement and you are acting ‘in the best interests of the company’ yes you can sack the MA. Thanks, James.
Neil Clydesdale
Hi James,
I think you offering advice to all these people is great and hope you might be able to help.
I live in block of 13 flats that are all owned on a leasehold basis with no residents management company.
There is a managing agent who has performed badly over a prolonged period and this has been made clear to them.
Finally the owner residents decided enough was enough and have tried to appoint a new agent directly – which I think was out of our collective authority.
In parallel the freeholder has appointed a new managing agent to perform the same services for a similar fee, but the proposed agent is associated with the managing agent and more importantly has consistently poor reviews from other flat owners they support.
Given our lack of management company, my feeling is that our options are to exercise a right to manage (unlikely we have the skills), or buy the freehold (which I think is unlikely)
My feeling pragmatically is that we have to see how the new management agent performs over a reasonable period and if their services do not meet the required standard at a sensible cost then we can make our feelings known to the landlord (supported by evidence) to try and push for a change.
Would our options change if we formed a management company and give us more control?
Any help appreciated.
Neil
James Cooke
Hi Neil Yes if you formed a management company you would enjoy much more control. I recommend you pursue your RTM. Regards, James.
fergus kenny
Hi James
I have recently accepted an offer on a flat which has 7 leaseholders who are shareholders in the management company, I’ve been told by a neighbour that our management agent has decided to withdraw their service effective immediately but I haven’t received any correspondence from them regarding it. Could you advise me firstly if I should have been advised through writing? Also could us not having a management agent in place impact my sale? Appreciate your help on this.
James Cooke
Your managing agent are entitled to withdraw but they ought have given notice first and ensured new agents are in place. You should ask your new neighbours for the agent’s contract – the notice/leaving terms etc will be in there. Thanks, James.
Ioana Preda
Morning,
We live in a Bellway block of flats. 8 flats on one side of the building, 3 on another side. There is another block of flats under the same management company.
We would like to creat a RTM company and take over. This process could last for 3 month, ok?
On our lease contract we only have Bellway and ourselves as lease holders, can we still get rid of the Management Company?
Ioana
Thank tou for your support.
James Cooke
Hi Ioana Good talking to you! Good luck with your RTM – I am sure you will win! James.
Liz Turner
Hi James – we are a small freehold development with a managing agent to look after a shared communal area. The managing agent is also Company Secretary of our Management Company. We want to give notice to the managing agent as we are not happy with their services. 2 questions – do we need to hold an AGM to give them notice? If we give them notice do they have to resign as Company Secretary? Many thanks.
James Cooke
Hi Liz
You do not need to hold an AGM to give them notice. Yes if you give them notice they do have to resign as Company Secretary. Thanks, James.
Heidi Miller
Hello,
I live in a new development of freeholds but we pay a service charge for the communal gardens etc;
The developer created a company to oversee the estate. The three directors of the company are the same people who are the management company. There are no residents directors in place yet.
How do we remove current directors who are also management agent, and put in resident directors?
Do they have any obligation to call an EGM if we ask them to do so? Because of covid, they are delaying a lot; do we have any right to ask for a virtual (Zoom) meeting?
Thank you
James Cooke
Thewy should call an EGM if instructed by you. Then simply have a vote of no confidence. Thanks, James.
Andrew Raymond Pattenden
Hi
I am wondering if Directors of an new RTM can simply appoint a new managing agent, or do all the shareholders as a whole have the right to vote on the issue.
We have a situation in our RTM where the presentations were made by a number of potential managing agents, but the the Directors made a unilateral decision without reference to the shareholders.
Thanks
Andy
James Cooke
If shareholders (i.e. owners of flats) have no confidence in their Direcetors they can call a vote of no confidence and get the Directors removed. Thanks, James.
Andrea
Dear James,
Thank you for your quick response.
All the best,
Andrea
Andrea
Dear James,
I am a leaseholder and not happy with the services provided by the managing agent. ( It’s the same for the majority of the residence).
Also, the communication with the freeholder only happens via the managing agent.
Considering how complicated is get right of the current bad management ( unclear bills, doesn’t reply or when it does, nothing is clear)
Do you suggest going for the right to manage? Can we (leaseholders) afterward decide to appoint a new managing agent or we do have to deal with the issues ourselves?
Many thanks in advance
James Cooke
Hi Andrea
Yes defintely exercise your RTM and then you can hire and fire your managing agents at will. Happy to chat further. 07715 328711.
Thanks, James.
Thomas Corr
We are currently paying management fees for 4years but have no director voted on in block of flats of 8 number.We have tried to takeover our own management but told we cannot due to the 2other blocks not completed one of which is now finished but other 1could take years to finish so basically in limbo.This portfolio went through the Nama system of which no owner was aware of at the time and basically press ganged into signing leasehold contract with no parking in place.We have now waited 5weeks for lift to be fixed with no movement as this is the norm with other duties that have never been carried out over this term.When lobby area etc encountered problems and other items left not done by builder we the residents had to pay as the management company never chased the overlooked work up.Legally can we change as previously we took out insurance for building but had to renege as management company says we cannot do anything to change the situation till site is complete as it’s now 5years and could be a further 5 who knows.Different builders are now doing the other blocks in the complex in Belfast but we really need to rid ourselves of this management company who do nothing and never answer our queries
James Cooke
Hi Thomas
You need to exercsie your Right To Manage to get rid of these bad managing agents. Kind regards, James.
Lee Leonis
Hi
I am a Director with two other Directors of 2 blocks of flats each block containing 16 flats.
Don’t pay ground rent as am part owner of freehold.Find our Maintenance company not doing a good job.How would we as 3 Directors go about changing our Maintenance company.
Would appreciate if you can help.
Regards
Lee
James Cooke
Hi Lee – you hold all the aces! You simply write a letter (I have templates if you need them) to the current maintenance company terminating their services – and simply hire a new maintennace company. Easy!
Happy to chat further – James. 01277 812905
James
Hi James.
Firstly, thank you so much for the website and responding to all these queries.
I currently live in a block where I’d like to change the managing agents following extremely poor service, and a clear lack of ability or desire to deal with ongoing problems.
The first issue is that the managing agent is also the company secretary – is it possible to remove them?
The second issue is the only directors of the RMC are ex-directors of the original developer, who do not reside on site and own 70-80% of the units. They never arrange any AGM/EGMs, there is no forum for discussion, and the managing agents refuse to share the contact information (claim they do not have) for the RMC directors.
The managing agent also refuse to share the contact information of other residents/leaseholders in the block under GDPR, so it is impossible to unite the remaining leaseholders. The RMC also approve the accounts each year without consulting any of the other leaseholders.
I have a feeling that the RMCs and managing agents ‘protect’ each other as they have worked on many developments together, but the RMCs were not elected.
The final issue is that the ground floor of the block consists of commercial units, and if this could prevent us from replacing the managing agent.
I’m aiming to call for a general meeting provided I can contact the RMCs, but other than that, what is the best way to proceed?
Kind regards,
James
James Cooke
Hi James
Thanks. May be best to chat over the phone. I’m on 01277 812905.
Regards, James.
Karen
Hi I’m a shareholder of a block of 7 freehold flats, we have two directors. We have been ask to vote for manageing agents . 5 voted in favour , 1 no and 1 obstained how do we stand is it a majority vote or present age to go through.
James Cooke
Hi Karen
It should be a Director only decision – not a vote of shareholders.
Thanks, James.
Russ P
Hi David,
I wonder if you can advise.
We live on a development of 210 properties (Block A=90 Leasehold flats, Block B=70 Leasehold flats and 40 Freehold houses).
The freeholder appointed a third-party Management Company when the development was built (7/8 years ago) and this company is named as the Managing agent in all of the leaseholders deeds (TP1). Residents do not feel they get value or service for the money they pay as service charge.
Is it correct to say that as the Management company are specifically named on the deeds they cannot be replaced, even if we have a recognised Residents Association with 50-60% membership that wishes to remove them? We have an active Residents Association that we would be able to split by block is needed to facilitate change.
I appreciate you may not have enough information to answer, apologies if this is the case.
Many thanks in advnce for your help
Regards
Russ
James Cooke
Hi Russ
Yes that is the situation. The only way you can get rid of that managing agent is by exercising your right to manage or by forcibly purchasing your freehold. The easiest option is the right to manage route. It would cost around £75.00 per participating flat.
You need more than 50% of leaseholders to support the right to manage. And that’s pretty much it.
Kind regards, James.
Tony
We have just loved into a new build (28 units) leasehold, the landlord and the managing agents are the same, they are useless, no service level agreements, poor communication, nothing gets done. We are talking about changing managing agents, is this difficult if the landlord and managing agents are the same? (One housing group). Looking for a smaller managing agents so when things need to get done they get done… ie car parked gates faulty for 3 months and still not repaired dispute numerous emails and calls. Thank you.
James Cooke
Hi given it’s a Housing Association I think you’ll struggle to get rid of them I’m afraid. I’m just taking some advice and will revert back asap.
Thanks, James.
James Cooke
Hi Tony
We have done some buildings with Housing association (HA) flats. Does yours have shared ownership flats with various levels of ownership? Beacuse the individual part-owners may qualify for Right To Manage (RTM).
If your building is entirely HA owned with no flat leases, then there is an issue as there are no ‘qualifying’ tenants (for RTM).
You could apply to the LVT/FTT to apppoint a manager?
Kind regards, James.
Kaye
Hi James
I am a director with two others of an rtm company with 24 flats. We want to change managing agents and have 3 quotes and interviewed two companies we decided on one and wrote to the other lease
Holders asking for their input.
The managing agent will be employed on a annual basis.
We have a majority of 18 votes out of the 24 leaseholders that agree. We have one leaseholder that is being particularly difficult and suggesting that we cannot go ahead without his approval.
The managing agent is the cheapest but his major works amount is 10% to oversee and snag all works. One of the other companies is more expensive but his percentage to oversee and snag works is cheaper.
Can one leaseholder stop this process?
Look forward to your reply
Kind regards
Kaye
James Cooke
Hi Kaye
This is 100% a Director decision. One leaseholder cannot stop it. All that leaseholder can do is call an EGM or AGM and request a vote of no confidence in the Directors – who by the sounds of it would win the vote anyway. Press on and good luck! James.
Peter
I have a flat in a block with a standard Tri-party agreement. I am unable to get any response from the Management Company for several years. They will not answer any correspondence and I recently found out that they had taken the decision to refuse to answer me at all. I believe that there is only 1 director of the management company. They are totally useless and I have no visibility of anything they do. I would like to change them, but how can I do this when they do not respond? If I ask for an AGM/EGM and they don’t respond what can I do? Most of the block is rented out and I’m not sure if a letter dropped to my neighbours would actually get through to the owners. Can you help please?
James Cooke
Hi Peter gosh that is challenging. Do you have the contact details for the Director? Are you sure there’s only one? I can find out if you tell me the company name.
Regards, James.
Meggy Geoge
THANK YOU , James.
You are amazing.
Will keep the blog posted how this was resolved, following your advice.
Keep the good work.
Stay safe!
James Cooke
Thanks Meggy. Stay safe!
Diane
I am the director of a residential management company where there are 3 blocks. The blocks have been managed on our behalf for 6 years by a large national property ,management agents. They were appointed without consultation by the previous MA. Our service charges have gone sky high and now recently I have recently discovered that the aportionment of the service charge has been falsely apportioned. 2 blocks should (24 flats) pay 75% of the service charge. The third block should pay 25%. The 2 blocks paying 75% have been paying too much for 5 years whilst the third block has paid too little and amounts to over £7000 more than we should. They have finally admitted to it but they are trying to blame the previous MA, which is incorrect.We always paid the correct amount previously. They also say they can only go back 6 months but I believe we can claim upto 6 years. The lease is clear. They didn’t read it In theory block 3 have unknowlingly paid too little due to the MA errors. I believe it would also too expensive to ask Block 3 to make up the discrepancey Would it not be fair for the MA to meet the cost of the discrepancey and not the third Block as its their error and amounts to gross incompetence. They are a very profitable company.
James Cooke
Hi Diane
Thanks for your message. There’s a fair bit to consider here. I have a few questions before I can properly respond. It would be easier to chat over the phone. I’m on 01277 812 905 or 07715 328711.
Kind regards, James.
Meggy George
Hi, I have read all the chats and have found some answers, but still we, 4 out of 7 leaseholders/shareholders of the freehold company find ourselves in an impossible situation.
we can apply what you advised on 18 February 2018?9?
If however the Directors are happy with the managing agents – but the wider leaseholders aren’t – then I’d suggest a vote of no confidence (at the AGM) in the Directors and get them removed and replaced with other leaseholders.
Always remember: the Directors report to the leaseholders (as shareholders of the company). If the leaseholders are unhappy with the Directors then they can remove them via a vote of no confidence.”
One of the newly appointed dIrectors appointed this agency. Our problem is that we were invoiced based on grossly overblown budget, approved only by a Director for 2019 and 2020. Throughout the year 2019t we paid some amounts and requested further details of what we were asked to pay for. We did not get it. The requests continued until November 2019. We were taken to debt collectors/ solicitors. WE are disputing those trying to finalise the lawfully owed amounts, but in the meantime the Board of Directors and their managing agent continue with another year of a total budget of £65000 each year – 16000£ general maintenance expenses + £27,000 reserve fund for a one family house converted to 7 flats. Basically we want to change the directors who do not feel obliged to consult us or report to us ,the leaseholders/shareholders. They do not protect our interests and they believe they are fully empowered to conduct business on their own as per the Articles of Association ( Table A standard one). Five times between November 2019 and February 2020 they refused us a meeting. explaining that we we don’t have the right to vote as we have not paid our services charges, and they will not attend a meeting even if we convene one. which we did – 4 of us back in November 2019 and in January 2020. .
We are disputing the amounts for 2019 via a solicitor, who is also appointed to represent us four in achieving our objective i.e. detect how much we lawfully owe for 2019, remove the directors, appoint 4 new directors and a new managing company. . Finalising the amounts due will take another 1-2 months to finalise.
So if we are not legible to vote, how can we remove the directors and together with that or subsequently cancel the agreement with the managing agents ( they refuse to provide us with the agreement signed by the Director. )
Sorry to make the comment so long, but trust me there are many more shocking facts of mismanagement and abuse of power that I have omitted. Please everybody – be careful when you appoint /agree or keep quiet when a director is appointed. In many cases once your fellow owners/shareholders, when they become Directors of the freehold company, they become landlords and you are just members, lessees.. My advice is take time to read carefully your lease and your Articles of Associations.
Do you think the minutes of our private meeting and a simple notice could be served to the managing agents as you advised another leaseholder above
or a notice served by our joint solicitor? And can the resolutions of an EGM between 4 /majority shareholders/leaseholders ( who are still disputing the reasonability and legality in authorising of the expenses)for 2019 ) be compulsory for the existing Directors ? -You will know best where we can look for a way out ( may be Company Law) .
Thank you in advance for dealing with our misery :). Keep safe!
mike
Hello I’m in same position please help
James Cooke
Hi Meggy
How can I help? What’s your circumstances exactly?
Regards, James.
James Cooke
Hi Mike
How can I help? What’s your circumstances exactly?
Regards, James.
James Cooke
Hi Meggy
Thanks. A smple majority is all you need. No need to bring in solicitors for a vote of no confince in the current Director(s). Once you have new supportive Directors in you simply fire the managing agents. It’s probably worth a chat on the phone though – yours is a complicated circumstance. I’m on 01277 812 905 and 07715 328 911. RFegards, James.
don
Hi James
I was hoping you can help. We are leaseholders living in a flat, there are two other flats above us, also leaseholders. All of us 3 leaseholders are not happy with our managing agents as they never respond to any of our calls or emails and there are repair works that need to be done. Each flat has a standard 2 party lease, between landlord/freeholder and leaseholder. My question is how do we change the managing agent. Do we have to get the freeholder’s permission? We did email the freeholder about our problems with the managing agent but they didn’t respond. I couldn’t see anything in the lease in regards to this issue. Or do we not require the consent of the freeholder to change the managing agents? and the only way to change the managing agents is for the 3 leaseholders to apply to Right To Manger? We’d be grateful for any clarity? Many thanks in advance for your kind assistance.
James Cooke
Hi Don
Thanks. The only way to be rid of your poor managing agent is to exercise your RTM. £500.00 single payment plus £55.00 for each particpating flat. Hope that helps? Thanks, James.
kevin
Hi there we are thinking of buying a ground floor maisonette on a small development(about 15 properties). There is a ground rent payable of £20 per year. There is no service charge because the management co. apparently went into liquidation. The question is can a new management co. be set up without my consent and impose a ridiculous charge?, and without a management co. at the moment who is liable for repairs. Many thanks
James Cooke
Hi Kevin
That is a tricky one. Is there now a new management company in place – with residents as Directors? Regards, James.
Andrea
Can anyone help?
I bought a flat leasehold last year in March. The block has 32 flats.
Since I moved in there were numerous things that were not right and were meant to be fixed.
There is a managing estate agent appointed by the Landlord which unfortunately does not help. The flat was brand new and things like floor, main door and window were damaged. I have asked these to be replaced, but unfortunately, after an exhausting chase with the managing agent, they only have sorted out snagging saying the would come back.
After 9 months no one ever showed up again, I called the managing agent so many times, sent several emails which I never had a response.
On top of this, since we have central heating, I found out on top of our service charge, we have to pay separately the maintenance, which shows on the invoice sent by the company that supplies the heating. Apparently these money gets paid into their account and then sent to the managing agent.
Now, my understanding is, what the steps to fix all of this and get rid of the managing agent?
Is recommended collecting testimonial from the other leaseholder?
There is any sort of support without taking legal actions and spend lots of money?
Many thanks for your time.
Andrea
James Cooke
Hi Andrea
Your story is all too common I’m afraid. You really have two options: 1. Right To Manage or 2. Freehold Purchase. Our site explains more about each but the main thing is you’ll need at least 17 flats to participate (50%+) and to ensure that you’ll have to do some door knocking.
If you want to talk tactics by all means call me on 01277 812 905. Regards, James.
Shireen Singh
Hi there. I am a property owner ina leasehold block since 2012. I havea number of concerns that i have raised with the managing agent and requested a meeting with them , myself and other owners. They have responded that i need to raise it at the AGM. I have since asked them a number of times for the AGM date as i believe it is later this month. In all the years since i purchased the property, i have never received an AGM meeting invite nor minutes of the meeting. Is this not illegal? i am not originally from the UK and know in other countries that agensta re legally bound to invite property owners. Would you please clarify. thank you
James Cooke
Hi Shireen
It is not a legal requirement to have an AGM but it is good practice. I’d suggest you change your managing agent. They sound awful. To do that I’d refer you back to the web site page “How To Change Your Managing Agent” https://www.yourhomepm.co.uk/change-your-managing-agent/
Regards, James.
Alex
I’m a leaseholder in a block of flats. There are 3 directors and I sold my flat two years ago but the buyer withdrew as the management company ran by the three directors who were and are still residents were uncontactable. Two years later in October 2019 I sold it again with a sitting tenant and nearly 4 months on neither myself or my solicitor can contact them. Now my buyers solicitor is saying the buyer will have to withdraw (again) if we can’t get a management pack. I’ve been to the block to talk to residents who have been having lots of problems for years. And another seller is having the same problem as me with the buyer withdrawing. Could you please advise?
James Cooke
Hi Alex
Sounds very frustrating. I’d suggest you contact the managing agents for the block. I’m happy to chat further – my number 01277 812 905. Thanks, James.
Sam Shah
Hi James,
I am a leaseholders in a 68 flat block facing a number of post-Grenfell cladding issues. The building was taken over by the council a couple of years ago, and is working to get these resolved. However, the property management company is pretty useless charging extortionate fees and not in our view taking appropriate care with the budget. Some of the flats are owned by overseas owners whom we cannot contact directly as they are represented by a letting agent. For others we know who the owners are. What do we need to do to get the PMC removed? Thank you.
James Cooke
Hi Sam
I would be delighted to help. It would be helpful to understand a bit more about the management. I say that because you suggest that the building has been taken over by the local council. And yet it also has a management company in place?
What is the council’s function? And do you have resident directors who are able to hire and fire the managing agent?
Once I understand these issues I will be able to help and advise you further.
With kind regards James.
Kelly
Hi there
I own a flat in a small 11 flat block.
About 5 years ago someone brought 5 of the flats and created a RTM company (he offered me the chance but at the time I couldn’t afford to) and appointed a management company to service the flats.
Since then the service charge has been increasing every year and is now so ridiculously high. When I get other opinions on the cost from other management companies they also say its too high. I can not sell my flat as everyone who is interested when they hear the service charge are put off.
Here is the question: How can I change management companies?
James Cooke
Hi Kelly
What is the name of the RTM Co? I need that to establish who are the Directors of the RTM Co (unless you already know?)
Once we know the Directors we need to know if they feel the same as you. If they do, they simply sack the managing agents and re-appoint. If they don’t you need to call an EGM (a meeting) and have a vote of no confidence in the Directors. Maybe chat further over the phone? I’m on 01277 812905. Regards, James.
Sophie
Hi James,
Our block of flats is home to hundreds of residents and leaseholders. Our Management agents are useless. We have no CCTV in our building which has led to many non-residents gaining access into our building, brothels within the block, vandalism and theft. What rights to we have as the leaseholders? And how can we change this?
Best wishes,
Sophie
James Cooke
Hi Sophie
Thanks. Do you have resident Directors who live on your site? If so they can terminate the contract with the managing agents. Very easy.
Happy to chat over the phone. I’m on 01277 812 905.
I look forward to hearing from you.
Regards, James.
Ed
Hi,
The leaseholder group have been presented with a tender for external works (more than double that of previous years). They have presented us with a tender based on worst case scenario without having inspected the building. The process currently requires us to pay the money in advance to cover all eventualities before work commences. We are now challenging the tender and also looking to change the management of the building.
What rights do we have as leaseholders to reject the tender?
If we commence the process to change the management of the building would that put any tender process and demand for payment on hold whilst the process is undertaken? or would that continue until the change of control had occurred?
Thanks
James Cooke
Hi Edward
Thanks! I emailed you direct from my email. Received OK? Regards, James.
A Donaghy
I own a leasehold flat in a block, which comprises privately-owned, local authority owned & commercial units. There is a tri-party lease between the freeholder, a management company and the leaseholders.
I have had longstanding issues with the managing agent appointed to service the block, due to inconsistent allocations of service charges between the 3 types of property, unexplained adjustments to my service charge, and unexplained high costs of certain components of the service charge. I have been unable to resolve these with the managing agent directly, despite several attempts over the course of 18 months.
I raised this to the freeholder (a company who purchased the freehold from the original developer a couple of years ago), but they responded that they are not responsible for appointing the managing agent and directed me instead to the management company. The management company is listed as “dormant” at Companies House, and has a single director, who is also a founding director of the Managing Agent.
I cannot assert RTM, due to the presence of local authority-owned properties within the block, and it seems pointless directing concerns to the management company, which is de facto the same managing agent with whom I have already repeatedly raised these issues.
Do I have no recourse apart from taking my concerns to a Tribunal?
James Cooke
Hi there
Thanks. If there are more than 50% private flats who support an RTM it shouldn’t matter about the local authority owned ones. So long as there’s commercial less than 25%.
Otherwise yes you’ll have to go the FTT. Kind regards, James.
Magdalena Hristova
Dear James,
Very grateful for your prompt answer. If I may bother you with one more trivial question?
In one of your posts above, you mention that anyone who puts himself/herself forward for the role of a director should be in an impeccable financial position in regards to his/her service charges obligations. Is that a legal requirement? I am asking this as one of our director nominees hasn’t paid the requested fees for several years (the individual had refused to pay the service charges under the pretext that the management company had never granted them access to the accounts).
Looking forward to hearing from you.
Best,
Magdalena
James Cooke
Hi Magdalena
As a general rule a Director needs to set a good example and be free of outstanding service charges. It’s not really a legal requirement but many MemArts (rules for your particular management company) do set this out as a requirement.
Kind regards, James.
Mark
I’m one of three joint owners/leaseholders of a house converted to 3 flats. There is no management company and one of the owners is troublesome (late/no payments, asserting disputed rights in communal areas etc). Is it possible for two of the owners to appoint a management company without the consent of the third?
James Cooke
Hi Mark
Your best bet is specialist legal advice I’d think. Do you pay Ground Rent to a freeholder? If so only they can appoint a managing agent.
Regards, James.
Jordan
Hi,
I was just wondering if there was a way to battle against one the end of year one off payments from out estates management company. The vast majority of people on the estate are sick of having to pay so much for service charge, when the work takes a long time to be done and when completed is done so to a very low standard.
thanks
James Cooke
Hi Jordan
Do you want to challenge your service charges or get rid of your managing agents?
Thanks, James.
lucille brooke-dew
We live in a 12 year old block of five leasehold flats. A few years ago a new freeholder bought the block and changed from the existing firm of managing agents to a new company. The new company is not comparable to previous one and we wonder if it would be straightforward for us to change back to original local and excellent managing agents or not,and about costs. Should welcome advice.
James Cooke
HI Lucille
It’ll be easy if your freeholder is happy to change back. If not you’ll need to either buy the f/h or exercise your RTM. We can assist if you wish. Thanks, James.
Claire Maclannan
How would this apply to an older leasehold property like ours where the freehold was bought and put in trust for the leaseholders. The trustees appointed were surveyors and directors of a property management company and of course appointed their own company to manage the property.
They have always been hard to communicate with and do the minimum. However since the residents committee failed and they took over the day to day running as well as the accounts they have been impossible.
They now refuse to accept a management committee of residents being re-established or having any authority. We feel trapped.
Any advice? Would the LVT be a way forward?
James Cooke
Hi Claire
That’s a tricky one! I think your best bet is the LVT (FTT) via an experienced leasehold solicitor. Sorry I can’t advise further. Good luck James.
NJA
Would that be also the case if the majorities of the directors are freeholders and have no Financial contributions towards the cost of the Leaseholders, further more want to employ a MA that is more expensive for the leaseholders than the current one ?
Thanking you in advance.
James Cooke
Yes that would be the case – the Directors are Directors first and must “always act in the best interest of the Company”. Thanks for your enquiry, James.
Ioana Preda
Morning,
We live in a Bellway block of flats. 8 flats on one side of the building, 3 on another side. There is another block of flats under the same management company.
We would like to creat a RTM company and take over. This process could last for 3 month, ok?
On our lease contract we only have Bellway and ourselves as lease holders, can we still get rid of the Management Company?
Ioana
Thank tou for your support.
NJA
Hi James,
We are 7 directors of a RTM company .4 are pushing for a new MA while 3 are happy with the old one.How can the MA be changed in this case please?How many votes are needed for the company to be changed ?
Thanking you in advance.
James Cooke
Hi Natasa
It’s simply a case of a vote – the majority wins. Make sense?
Kind regards, James.
DN1
I am hoping that you can offer some advise.
We are private limited company with shares who employs a property management company to look after the external communal areas in our development. The Director and secretary of both companies are the same.
We are very keen to switch to another property management company as the current ones appear to be useless. They are now saying that in order to switch to another company a ‘Special’ resolution would be required. This is not stipulated in either our Articles of Association or in the Companies Act 2006.
In fact, the AoA make no reference to either an ‘Ordinary’ or ‘Special’ resolution. The articles state only the number of shareholders/members required to form a quorum (75% of shareholders) but not the percentage of that quorum required to pass a resolution.
Over the years there has never been a quorum present at any of the Annual General Meetings.
Does this not mean that any decisions taken by the assembled members over the years must be considered invalid?
Would they not need to provide legal documentation in order to demand a ‘special’ resolution for our wish to switch company?.
Thanking you in advance.
James Cooke
Hi there
To get rid of your managing agents you simply write a letter of termination giving say two months (or whatever is in the contract) and in the background you appoint a new agent.
I hope that helps?
Regards, James.
Robert
We have management company and awful managing agent
I am only one director,
5 flats each 1 share
How can i remove and get new agent?,solicitor need to be involved?,agent got all details to company house and addres is register into his estate agency as he works there too.
I have new agent company lined up but not sure how to proceed now,how get notice and do next step?,really want to avoid using solicitors ££
James Cooke
Hi Robert
Easy – you simply send a letter to the managing agent to terminate the agreement with them. Give them say two months notice and in the meantime appoint new agents.
Thanks, James.
john sinclair
Hello James.
I am a freeholder living on a development managed by FirstPort. The development consists of 3 blocks of 12 with 1 of those block being Kent county council and the other 2 are bought leasehold flats. There are 29 3 bed houses 5 are part ownership 4 are Kent County Council and 20 are freehold. How can I as a freeholder oust FirstPort? I understand the blocks can vote FisrtPort out but what about the rest? Thank you so much.
James Cooke
Hi John
I’m afraid you’re stuck. You can’t even do an RTM in those circumstances. You could try the FTT and challenge the Service Charges on grounds of unreasonableness – there is a chance they could parachute in new management. Regards, James.
Lisa Silver
Hi, I live in a gated development of 8 houses and wanted to know if it will say anywhere explicitly that it is possible to change Management company?
It refers to the Director; if the Director is not one of the residents does this make any difference?
Jessica.
Hey – I am a director and, another director wishes to change the management agency – I don’t. I am happy with them. How many votes do they need? And, can they do it without my permission. Thank you.
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