Appointment of a Manager and/or Receiver

The Right
Is your property badly managed?  Have you been asked to pay unreasonable amounts for buildings insurance, service charge or administration costs?  Are your managing agents efficient at dealing with your enquiries or complaints? 

Complaints about poor property management are becoming more and more commonplace amongst leaseholders.  The majority of disputes between landlord/managing agents and tenants arise as a result of breaches of management obligations or unreasonable (or anticipated) service charge demands and/or administration charges.  Where such problems arise, the Leasehold Valuation Tribunal (‘LVT’) has a power to appoint a Manager or Receiver.  A single tenant or several tenants may jointly apply to the LVT for the appointment of a Manager or Receiver. 

What Has To Be Approved?
A tenant must show that it would be just and convenient in all the circumstances for a manager to be appointed.  In addition, the tenant must also show one of the following:-

• The Respondent is in breach of management obligations
• Unreasonable administration charge demands have been made or are likely to be made
• Unreasonable service charge demands have been made, or are likely to be made
• Breaches of the relevant codes of practice
• Any other circumstances that may exist which make it just and convenient for an order to be made by the LVT.

The Procedure
The LVT regards the appointment of a Manager against the wishes of the Landlord to be a last resort and will usually require certain preliminary stages to be completed.  Only in exceptional circumstances will the LVT be willing to waive compliance to these preliminary stages.   

Variation Or Discharge Of An Order Made By the LVT
A mere change in circumstances of the property will not permit an Order of the LVT to be discharged or varied.  An Order may only be discharged or varied if the LVT is satisfied that to do so would not cause the initial problem to occur.  The LVT will also be mindful as to whether a discharge or variation will be “just and convenient”. 

Brethertons can assist you in dealing with the preliminary stages, as well as, making an application to the LVT for an Order for the Appointment of a Manager and/or Receiver.  We can also assist with the application for the discharge or variation of LVT Orders. 

If you are a Leaseholder or a member of a Residents’ Association and wish to discuss your case with us, please contact:

Yashmin Mistry Solicitor Tel: (01295) 661 453 Email: yashminministry@brethertons.co.uk