Where the management of flats is dealt with by a landlord, leaseholders don’t necessarily have a say in the way matters are dealt with. On occasion this can cause difficulties.
In certain circumstances, leaseholders may have a right to take over the management of their flats from the landlord.
Who is responsible for flat management?
It is quite often the case that flats are managed by the flat owners who each have membership of a flat management company. This gives them the right to work together to deal with issues such as arranging insurance, carrying out maintenance works and setting and collecting service charges. They can also set up a sinking fund, with regular contributions from the flat owners going towards saving a larger sum of money that can be used for any substantial works that might arise in the future, such as a new roof.
Where the landlord deals with the management of flats, the flat owners may oppose some of the decisions made in respect of the building. Where they hold a lease that was originally granted for more than 21 years, a so-called ‘long lease’, they can apply to the Isle of Man Rent and Rating Appeal Commissioners for a management order in certain situations.
Obtaining a management order under the Housing (Miscellaneous Provisions) Act 2011
To obtain a management order, tenants who hold long leases need to collectively apply to the Commissioners on the following grounds:
a) The landlord is in breach of their obligation to the tenants under the tenancy relating to the management of the premises
b) Unreasonable services charges have been made or proposed
c) No service charges have been made or proposed
d) The landlord has failed to hold the tenants’ payments in trust
e) The state of repair or management of the premises is likely to improve significantly if a management order is made
This gives tenants some control over the situation where the management is inadequate or there are breaches of the landlord’s duties. In the future, it is hoped to introduce a law giving tenants the right to manage their flats, should they wish to.
Proposed new legislation on leasehold reform
A private members bill has been introduced to the House of Keys which proposes reforming the law giving long leaseholders the right to take over management of their flats. In England and Wales, the right to manage has already been introduced, along with the right to enfranchisement, or ownership of the freehold.
On the Isle of Man, it is proposed to make an additional ground on which an application can be made to the Commissioners for a management order. This will be on the basis that the long leaseholders wish to create a right to manage company.
The leaseholders will need to set up a management company in order to make the application and take over the running of the flats.
Contact our Isle of Man Isle of Man residential property lawyers
If you are a leaseholder and you have concerns about the flat management provided by your landlord, we would be happy to discuss your situation with you. To speak to one of our expert Isle of Man residential property advocates, ring us on 01624 665522 or email us: hello@quinnlegal.im.
About Kathryn
Kathryn is the Head of Property at Quinn Legal
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Head of Property
