If you are not happy with the way your managing agent is running your block, you may be able to make an application to the First Tier Tribunal (FTT) to appoint a new manager.
Unlike the Right to Manage process, an application for an appointment of a manager to the FTT does not need majority backing of the other leaseholders and in theory one leaseholder can apply on their own. Appointment of a manager is a fault based one, this means that when applying to the FTT the leaseholder(s) will need to show that the existing manager is in breach of one or more of the grounds listed below and that it is ‘just and convenient’ for a new manager to be appointed.
Grounds for appointment of a new manager
The leaseholder(s) making an application will need to show at least one of the following:
- There is a breach under the terms of the lease relating to the management of the building
- Unreasonable service charges have been demanded or that it’s likely to be demanded
- Unreasonable variable administration charges have been made or are likely to be made
- Non-compliance of any relevant provision of an approved code of management practice such as the RICS Residential Management Code, 3rd Edition
In all circumstances and it must be ‘just and convenient’ for an order to be made
Making an application to the FTT
Before an application can be made to the FTT, the leaseholder(s) must issue a Section 22 notice to inform the landlord of their intention to make an application under section 24 of the Landlord and Tenant Act 1987 for an appointment of a manager. This is known as a Preliminary Notice. The notice must set out the landlord’s failures and giving them a reasonable time to remedy them. If the landlord fails to remedy the failures within the reasonable time, an application can be made.
Nominating a manager
The application will ask for the leaseholder(s) to recommend a manager to nominate and be appointed to become the new manager. If sucessful they will be known as the “Appointed Manager”. It is usually expected for any manager being put forward to have professional credentials and suitable credentials for example: client money protection insurance, professional indemnity insurance and memberships of a professional body etc…
If a new manager is appointed?
If a new manager is appointed then the existing manager will no longer have control over the management of the building and the new manager will take control of the management. They will usually have duties to follow under a management order from the FTT.
The above just provides a brief overview of an appointment of a manger under section 24 of the Landlord and Tenant Act 1987 through the First Tier Tribunal. To find out more about appointment of a manager, you can contact us today by completing the form below
The above content is published for informational purposes only and is not considered legal advice. You are advised to seek you own independent legal advice