Prince’s Gardens RTM process

The lease (clause 2) provides the option for the freeholder (Eldonian CBHA) to transfer the freehold and divest themselves of the management of Prince’s Gardens on the formation of a Right to Manage company by the owners within the development. In 2013 Eldonians expressed their wish to divest themselves of the management responsibilities and contracted with Rebloom Ltd to provide maintenance services and to engage all leaseholders with the objective of assessing the desire to establish a Right to Manage (RTM) company. Starting with a small group of leaseholders a leaseholder association was formed and monthly leaseholder meeting established. In February 2014 the Leaseholder Association agreed to establish an RTM company and two directors and a company secretary were appointed. The directors are Julie Dove and Edward Knight, both owners and residents in Prince’s Gardens. The company secretary is Rebloom Ltd.

What is a Right to Manage company?

A Right to Manage company is a not for profit organisation specifically established by flat owners to maintain the development they own a property within. RTM companies are NOT standard companies with shares and shareholders. They are limited by gaurantee with all owners invited to become members of the company. Only when 50% of the owners have become members can the RTM company approach the freeholder and arrange the transfer of the management. In Prince’s Gardens this means we need a minimum of 48 owners to agree to become members and return the attached membership request To the Board of Prince’s Gardens RTM Company Limited. Right To Manage does not necessarily mean self-management. At its most basic, the right to manage is simply a transfer of responsibility and decision-making. The difference is that whoever is running your building management now reports to you, not the freeholder. There is only a transfer in the practical day-to-day management of the building if the RTM company decides there should be. The leasehold reform act 2002 enabled the formation of Right to Manage companies and the act defines the form and trading constraints of such companies, with the objective of protecting the interests of flat owners. The prescribed items range from the structure of the company name, the appointment of directors, payment of fees and the governance to apply during the life of the RTM company. For Prince’s Gardens RTM Company Limited, the company secretary will support the directors in ensuring that these legal requirements are met. For more information on the set-up and structure of a RTM company see English legislation For details on the Leasehold reform act and frequently asked questions on the running and management of a RTM company refer to the governments lease advisory service princes gardens rtm company certificate 001 Prince’s Gardens RTM Company Limited have adopted the model articles of association as the basic governance for the company. See Prince’s Gardens Articles of Association corrected. When 50% of owners become members of the RTM, it is recommended that the company expands upon this governance framework. Prince’s Gardens RTM Company Limited was incorporated on 11th March 2014. company number: 8933820. Select to the image opposite to view a copy of the certificate of incorporation.

Implications of becoming a member

Financial

Will it cost you anything to join? – NO Are you liable to any costs should the company be wound up? – Yes, to a maximum of £1

Time & effort

There is no requirement on you to actively engage in the decisions made by the RTM. If you do want to have a say or a vote on decisions but your time is limited it is the intention to provide on-line facilities for owners who do not live in the development. Postal voting will be provided for owners who cannot access the internet. We are aware that we all have busy lives and the RTM should not encroach on that time if you do not want it to. You have made an important financial investment in Prince’s Gardens and the RTM will at all times provide you the opportunity to contribute to those decisions that can impact and enhance that investment.

The benefits of becoming a member

  1. The resale value of your investment should be enhanced
    1. With Prince’s gardens owning the freehold,
      • The leases can be extended – only 106 years remains.
      • In the leasehold market resale values often reduce the nearer the lease term gets to 80 years. see
      • no one else can make any decisions on further development within the grounds – this takes away any risk to the resale value
    1. By achieving our aims, the desirability of the development will increase, which in turn should increase resale value
  2.  Active engagement in all decisions Either in face to face meetings, by post or the internet, you will have the opportunity to influence decisions made on the plans for the development, the annual service management charge, repair priorities, partner organisations, lease extensions, revenue and debt policy and rules relating to living in Prince’s Gardens

And if we don’t achieve the minimum 50% membership

Eldonian CBHA will have the right to continue with the current management arrangement. The implication being that you may not have as much influence over the decisions made and the plans for the development as you would if a RTM company was in place

Action required by you

Download the membership application and return it to; Prince’s Gardens RTM Company Limited c/o Rebloom Ltd, Courthill House 60 Water Lane Wilmslow SK9 5AJ Please note:

  1. only the owner as stated on the Land Registry can sign the membership form. If two or more people are registered as owners of the flat, each owner is required to complete a separate membership form.
  2. If you own more than one property, seperate membership forms are required to be completed for each property

In completing the form please insert your name and flat number in the paragraph noted in the membership form before printing, signing and posting.