Notice of Participation
After it was decided that due to my leasehold knowledge I should be the link between the company and the managing agent (as both Directors were in full time work), the next step was that of serving the notice of participation on the other qualfying leaseholders who did not attend the initial meeting, and inviting them to become members. This must be sent using the prescribed form. It must state:
- The RTM company intends to acquire the right to manage;
- The names of the members of the RTM company;
- The invitation to the recipient to become a member of the RTM company;
- Other information required by regulations:
- The RTM company’s registered number and the address of its registered office;
- The names of its directors and, if applicable, the secretary;
- The name of the landlord, plus the name of any other person who is party to the lease other than the leaseholders.
The notice must also state:
- That the RTM company will take over the landlord’s management functions under the lease, including the enforcement of tenants’ covenants and the granting of approvals. In the case of buildings containing flats under the control of the landlord, or commercial units, the notice must make it clear that the management powers obtained through RTM will not extend to those flats or units;
- That each member of the RTM company may be liable for the landlord’s reasonable costs arising from service of the notice to exercise the right to manage. (This is to ensure that everyone is aware of the potential financial implications of involvement in a RTM application.);
- Whether or not the RTM company intends to employ a managing agent to manage the building (and, if a prospective agent has been identified already, his name and address); or, alternatively, whether the company intends to appoint the current managing agent.
If the RTM company does not intend to appoint an agent but to manage the building itself, the notice must give details of the management experience, if any, of the existing members of the company.
The steps we didn’t have to adhere to as a result of having no freeholder were those of serving the claim notice and the right of access notice, and any management contract notices etc. Nor did we have to be concerned about rejected claims and unspent service charge monies and we also had no freeholder voting rights to concern us either.