Leaseholders can collectively apply for the Right to Manage (RTM) their own block and remove the involvement of the freeholder, but the building still has to be managed from day to day and things still have to be paid for. We're involved with a fairly large RTM block and employ professional management and it works pretty well, but in a small block, RTM can become chaotic, with a handful of leaseholders arguing over what needs doing while their building decays around them.
In our block we pay quite a high service charge but half of it goes towards building up a decent reserve fund so we're not faced with big bills for major works when they occur. On the other hand, I know other blocks where the leaseholders prefer paying a much lower service charge and paying for major works as and when they arise. Either way round, any properly managed block should have a rolling capital plan so major works, such as a roof repair, shouldn't come as too much of a shock. |