Right to Manage took legal effect at City Heights at midnight on 31st December 2010 to the roar of Fireworks and the ching-ching of Champagne glasses!
In 2004 new legislation was brought into force which means that Long Leaseholders now have a new power to take over the Freehold of their blocks of flats, via a residents company which Leaseholders would join; this is without having to buy the Freehold! Then Leaseholders can either perform the management themselves or appoint a managing agent who answers to them!
The City Heights Development in Nottingham consists of 20 blocks containing apartments, Penthouses and a Leasehold House, over two streets and includes land, seven car parks and gardens spread out over a large area. After years of poor management the owners have united and after a lengthy legal battle with the Peverel Group have now acquired the Right to Manage (RTM) their own homes. RTM came into legal effect at midnight on 31st December 2010 and the performance of covenants formerly the responsibility of the Freeholder fell to the residents RTM company to perform (except Ground Rent demands/Forfeiture). As well as management transferring to the Leaseholders so too do covenants requiring consent to Sublet (rent out), Assign (sell) and other consents which include keeping a pet or Building Alterations- these consent provisions, some say have been exploited with unnecessarily high administration fees.
Prior to the RTM case City Heights Leaseholders took the Peverel Group to Tribunal and had re-determined the Service Charge levied for years 2003-4, 2004-6 (two year accounting year), 2006-7, 2007-8, 2008-9 and 2009-10.