1. Can you share the legal guidance received, including specific instructions, budget, and advice?
We are following a structured process similar to other developments where RTM has been successfully implemented. Legal guidance has been sought from Lease-advice.org and solicitors have been consulted at various stages to ensure that the RTM application is robust. In addition to this, a solicitor on the RTM board provides pro bono advice. The legal inquiries are ongoing, and once they are complete, we will publish all relevant information, including legal opinions and advice, on the RTM website. Our approach ensures that the legal process is transparent and leaseholders are fully informed.
2. Has the RTM group explored appointing leaseholders as directors of GWMC?
We have not pursued the option of appointing leaseholders as directors of GWMC because the RTM structure provides a more comprehensive and long-term solution. Under RTM, River Gardens RTM Company Limited will replace GWMC as the managing entity for the estate. This shift gives leaseholders full control over estate management decisions, including budgets and contracts, something we could never achieve under the current GWMC setup, which still allows the freeholder to have significant influence. Our goal is to create a management structure where leaseholders, not the freeholder, are fully empowered.
3. Will there be a process to allow Bellway block residents access to the Wyndham private garden?
Currently, there are restrictions on access to certain common areas like the Wyndham private garden, despite residents paying for the maintenance of these spaces. The RTM company’s objective is to ensure that all residents, regardless of which block they live in, have equal access to shared estate facilities. This would include areas like the private garden, playground, and other communal spaces. Once RTM is in place, we will review current access policies and make sure that all facilities are equally available to all leaseholders.
4. Should the RTM effort wait until cladding is completed, reserves deficit is repaid, and district heating is upgraded?
These issues are indeed complex, but the RTM company can manage these matters more effectively than the current management structure. The ongoing cladding remediation has been poorly handled with insufficient communication, delays, and unaccounted-for costs. By transitioning to RTM, leaseholders will gain control over project management and ensure that works are completed on time and at no additional cost to them. Regarding the reserves deficit and district heating system upgrade, the RTM will have more flexibility to negotiate and hold the responsible parties accountable, ensuring that these issues are addressed efficiently.
5. What are the requirements for implementing RTM in a structurally detached estate?
Our estate includes buildings owned by social housing groups, such as L&Q and Peabody. This setup is common in other developments, and there are clear legal frameworks for managing this arrangement under RTM. For instance, social housing providers will continue to contribute to service charges, as they do now. Enderby Wharf, a nearby estate, faced similar challenges but successfully implemented RTM, ensuring a fair contribution from all parties. The legal guidelines are clear, and this will not prevent us from establishing RTM at River Gardens.
6. What legal advice has the RTM group received regarding the estate’s shared facilities and RTM application?
We have consulted several legal sources, including Lease-advice.org, and have received advice that shared facilities will not be a legal obstacle to establishing RTM. For example, district heating can continue to be managed by the independent heat supplier, with billing allocated to respective users. The service charges contributed by leaseholders, L&Q, Peabody, and other entities will remain unchanged, and the RTM company will manage these contributions as part of its overall estate management.
7. Under RTM, how will service charges be divided among buildings, especially for buildings without lifts?
The allocation of service charges will be one of the first areas reviewed under RTM. We will ensure full transparency in how these charges are calculated and applied. Residents living in buildings without specific facilities, such as lifts, will not be required to contribute to the maintenance of those facilities in other buildings. RTM will work to ensure that each building pays for its own services while also contributing fairly to shared estate facilities, such as gardens and playgrounds.
8. Will the cladding and remedial work funding remain intact if RTM is implemented?
We have thoroughly investigated this issue and confirmed that transitioning to RTM will not affect the government grants or the ongoing cladding and remedial works. The RTM board will oversee these projects, ensuring proper accountability, and scrutinize contractors to avoid delays and additional costs. Unlike the current management structure, RTM gives us the authority to ensure these works are completed efficiently and within budget.
9. How will the RTM hold Rendall & Rittner accountable for mismanagement of the district heating system?
Under the current setup, holding R&R accountable for mismanagement has been difficult for individual leaseholders. With RTM, we will have a collective legal budget and stronger governance to address these issues head-on. The RTM board will pursue any losses incurred due to mismanagement, including the reported £200k deficit in the district heating system, through legal channels or negotiations. The RTM will ensure that leaseholders are not unfairly charged for past mismanagement.
10. Will the RTM website provide details about the director structure, bios, and voting process?
Yes, the RTM board will provide detailed information about the organizational structure, including the roles and responsibilities of directors, their qualifications, and the voting process for electing new members. The Articles of Association will also be available, and these are prescribed by law for an Estate Management Company. This information will be accessible on the RTM website, ensuring full transparency for leaseholders.
11. What potential financial risks do leaseholders face if the RTM effort fails?
If the RTM application is rejected by the landlord, the landlord may seek reimbursement for the costs associated with reviewing the application. These costs are usually limited to reasonable professional fees and are generally minimal. To manage this risk, we are prepared to establish a fighting fund, supported by interested leaseholders, to cover any legal expenses. However, we believe the likelihood of rejection is low, and the potential financial risks are manageable.
12. Is signing up on the RTM website a binding vote?
Yes, signing up on the RTM website is a legally binding vote in favor of establishing RTM. By signing up, leaseholders become members of the RTM company and gain a £1 share, giving them voting rights and a voice in estate management decisions. This is a critical step in moving the RTM process forward and ensuring that leaseholders can take control of the management of their estate.
13. What is the structure of the RTM company, and how will decisions be made?
The RTM company will operate with a hybrid estate management model, combining volunteer directors with professional estate managers and experts in legal, financial, and compliance matters. The board will oversee all major decisions, ensuring transparency and accountability. Day-to-day operations will be managed by a full-time estate manager and assistant manager. The board will also have the power to challenge and veto contracts signed by the managing agent, ensuring that leaseholders receive value for money.
14. Are you sure the estate qualifies for RTM?
Yes, we are confident that River Gardens qualifies for RTM based on legal advice. The residential portion of the estate exceeds 75%, which is one of the primary legal requirements. Additionally, RIGRA has commissioned a legal opinion from Edwin Coe to confirm the estate’s eligibility for RTM, and we expect this opinion to be shared with us shortly. We have also reviewed the legal framework thoroughly to ensure that the RTM application is compliant with all relevant regulations.
15. Can non-leaseholders serve as directors of the RTM company?
Yes, non-leaseholders can be appointed as directors of the RTM company if they bring valuable skills and expertise that would benefit the estate. For example, professionals with expertise in legal, financial, or compliance matters could serve as directors, helping to ensure the RTM company is well-managed. Additionally, the estate manager, who will be responsible for the day-to-day operations of the estate, will also be a non-leaseholder and will serve as a director to provide oversight and continuity.
16. Where do you expect cost savings under RTM?
Cost savings under RTM will primarily come from VAT exemptions and the renegotiation of existing service contracts. Currently, the managing agent, Rendall & Rittner, charges VAT on services, which could be avoided by directly hiring a full-time estate manager and assistant. These staff members would handle day-to-day estate operations, eliminating the need for certain outsourced services. Additionally, we would scrutinize contracts with third-party providers, ensuring we only pay for necessary services at the most competitive rates. These actions should result in substantial cost reductions while maintaining high service standards.
17. How will RTM resolve conflicts between service quality and cost reduction?
RTM’s board, which will include representatives from each building, will work collaboratively to find a balance between maintaining service quality and reducing costs. With RTM, leaseholders will have direct oversight of contracts and can make informed decisions about whether to opt for higher-quality services at a higher cost or more cost-effective options. Transparency in the allocation of service charges will allow residents to understand where their money is going and make collective decisions that benefit the estate as a whole. This flexibility, which is currently lacking, will allow us to prioritize both quality and affordability as needed.
18. How does the GWMC lease structure impact RTM?
The GWMC (Greenwich Wharf Management Company) was originally set up by the landowner, London & Regional, to retain control over their investment in the estate. GWMC, however, does not actively manage the estate but merely exists as a vehicle for ownership. Under RTM, the GWMC structure will remain in place but without control over the estate’s day-to-day management. Instead, River Gardens RTM Company Limited will take over these responsibilities. The RTM company will then have the authority to appoint or replace managing agents and make decisions that benefit leaseholders, rather than serving the interests of the freeholder.
19. What cost savings can be expected from implementing RTM?
Currently, we do not have full access to financial data, but we anticipate significant cost savings once RTM is established. For instance, eliminating a profit-driven management company like Rendall & Rittner could immediately reduce overhead. Moreover, direct hiring of estate management staff would allow us to avoid paying VAT on many services, as mentioned earlier. We also expect to reduce inefficiencies by renegotiating or terminating underperforming contracts. Once RTM is implemented and we gain access to the full financial picture, we will be able to provide more detailed projections of potential savings.
20. How will cladding remediation work be affected by RTM?
Cladding remediation and other major works, such as balcony repairs, remain the responsibility of the original builder (Durkan or Bellway) and are out of scope for estate management, whether handled by Rendall & Rittner or an RTM company. These works will continue regardless of the RTM transition, but under RTM, we would have more oversight, ensuring the projects are better managed and completed in a timely manner. The RTM board will work closely with the builders and contractors to make sure the work progresses smoothly without additional costs or delays for leaseholders.
21. When will we see a detailed RTM plan?
Once the RTM process moves forward and we gain control of the estate’s management, we will be able to develop a comprehensive management plan during the handover period. Currently, we are focused on securing leaseholder support for RTM and preparing to serve notice to the freeholder. Without access to key financial and operational data, it is challenging to create a fully detailed plan at this stage. However, once we take over, we will immediately begin assessing how the estate has been managed and create a plan that addresses all of the issues raised by residents.
22. Why not work with the landlord to solve issues instead of pursuing RTM?
We believe that RTM is the best way to give leaseholders full control over estate management. While working with the landlord may seem like a simpler solution, their objectives often do not align with the best interests of residents. For example, the landlord is driven by profit motives, and their priorities may not include cost efficiency or quality improvements in estate services. By establishing RTM, leaseholders can eliminate these conflicts of interest and manage the estate in a way that serves their needs, ensuring that every decision benefits the community directly.
23. How will RTM validate sign-ups and prevent false entries?
To ensure the legitimacy of votes, every sign-up will be cross-checked against leaseholder records. Participants are required to provide personal details such as flat number, building name, and email address. Duplicate or suspicious entries will be flagged and removed, and we will verify email addresses and leaseholder information at the end of the sign-up process. Our system is designed with enterprise-level security to prevent fraud, and we are committed to ensuring that only valid votes are counted. This level of scrutiny will help protect the integrity of the process.
24. What steps has the RTM group taken to engage the landlord on existing problems?
Once the RTM is established, the RTM board will formally engage the landlord, developers, and other relevant parties to set clear expectations and hold them accountable for their responsibilities. For example, the landlord will remain responsible for certain aspects, like the district heating system, and the RTM will work to ensure these obligations are met. We have not yet engaged the landlord on all specific issues because we believe that securing RTM first is the most effective way to approach these problems. Once we have legal control, we can begin negotiations from a stronger position.
25. How can the RTM group justify signing up members when the full RTM plan is not finalized?
Signing up members is an essential first step in the RTM process, and it allows us to gauge support among leaseholders. By signing up, residents express their interest in participating in RTM and gain a £1 share in the RTM company, which provides them with voting rights and a say in the estate’s management. While the full plan is still in development, we cannot complete all of the necessary preparations until we secure a sufficient number of members and proceed with the RTM application. Once RTM is established, the leaseholders will be fully involved in finalizing the estate management plan.
26. Is RTM legally possible given the complex structure of the estate?
Yes, we are confident that RTM is legally viable at River Gardens. We have consulted with legal professionals and obtained advice from several sources, including Edwin Coe, who is currently reviewing the lease structure. The primary qualification for RTM is that the residential portion of the estate must exceed 75%, which River Gardens meets. Although the estate has a complex structure with various social housing entities, this has not prevented other developments, like Enderby Wharf, from successfully implementing RTM. We will continue to ensure that all legal requirements are met as we move forward.
27. What lessons have been learned from the Enderby Wharf RTM transition?
Enderby Wharf offers a valuable case study in successful RTM implementation. By transitioning to RTM, Enderby Wharf reduced management costs by approximately 30% and improved the quality of estate services. Some of the specific benefits included hiring a dedicated estate manager, upgrading gym equipment, enhancing garden maintenance, and reducing the incidence of unexpected service charge increases. The RTM board also met monthly to ensure ongoing oversight of estate management. River Gardens can follow a similar model, applying lessons from Enderby Wharf to improve service quality and reduce costs while involving leaseholders more directly in decision-making.
28. Is a Section 20 consultation required under RTM, and what are the implications for managing agent contracts?
A Section 20 consultation may be required for certain long-term agreements or major works that affect service charges. For example, if the RTM board decides to enter into a new managing agent contract lasting more than one year or undertakes qualifying works such as significant repairs, a Section 20 consultation will be necessary. At River Gardens, we may adopt a hybrid management model, and the need for Section 20 consultations will become clearer as we take control of estate management and review current contracts. The RTM board will ensure compliance with all relevant legal obligations.
29. Will employing staff directly through RTM result in VAT savings?
Yes, we expect to save on VAT by directly employing estate management staff under the RTM model. Currently, outsourced services are subject to VAT, which increases costs for leaseholders. By hiring a full-time estate manager and assistant, we can avoid VAT on these services. However, we are aware of recent legal developments that could impact these savings, and we will consult with legal and financial experts to ensure that our staffing model maximizes cost efficiency while remaining compliant with applicable laws. Our goal is to reduce unnecessary overhead and provide the best value for leaseholders.
30. Can an estate manager serve as both the Fire Safety Officer and the Accountable Executive for Building Safety?
Yes, we believe it is feasible for the estate manager to assume both roles, as demonstrated by successful RTM setups like Enderby Wharf. At Enderby Wharf, the development manager took on the role of the accountable person for building safety, while relying on development insurance and directors’ liability insurance to manage the associated risks. Additionally, third-party specialists were brought in to ensure compliance with fire safety and other regulations. River Gardens can follow a similar model, ensuring that the estate manager is adequately supported and that all legal and safety requirements are met.
31. Should the RTM vote be conducted in two stages to first gauge interest, then finalize the decision?
While conducting the vote in two stages might seem like a cautious approach, we believe that a single binding vote is more efficient. The RTM process is already structured to include a series of legal checks and steps. The first priority is to gather enough support from leaseholders to formally serve notice to the freeholder. After this, we will develop a detailed estate management plan as we gain access to more data during the handover. Delaying the vote could slow down progress and result in more uncertainty. Therefore, we encourage leaseholders to engage fully now, ask questions, and trust that their involvement will help shape the final RTM structure and plan.
32. Will there be a Zoom Q&A session where residents can ask questions directly and challenge statements?
While a live Zoom Q&A session is an option, we recognize that managing many participants simultaneously can be challenging and time-consuming. Our current approach is to address questions through structured communication channels, like town halls or smaller group meetings, where everyone can have their concerns addressed in a more organized manner. However, we are open to evolving our methods, and if leaseholders feel that a Zoom Q&A would be beneficial, we will consider organizing such a session, ensuring that discussions remain productive and focused.
33. Shouldn’t the RTM group have first collected more information, conducted a risk assessment, and notified residents of the options before setting up the RTM company?
The process of establishing an RTM company follows a legal framework designed to give leaseholders control over estate management. Our approach was informed by the successful transition at Enderby Wharf, where leaseholders first signed up to the principle of RTM before finalizing the specific management details. The key is to get leaseholders’ support early on, which then allows us to serve notice to the freeholder and begin the process of acquiring essential financial and operational information. Once we have access to this data, we will conduct detailed risk assessments and notify residents of all available options. This approach ensures that the RTM process can move forward efficiently, while still addressing any concerns as they arise.
34. What will the governance and decision-making process look like under the RTM structure?
The governance and decision-making process of the RTM company will be dictated by the Articles of Association, which are legally prescribed for estate management companies. The RTM board will be composed of leaseholder representatives from across the estate, ensuring that all voices are heard and that decisions are made in the best interest of the community. Decisions will be made collectively, with input from all board members, and key matters, such as service charges and major works, will involve consultation with leaseholders. The process will be transparent, democratic, and aligned with legal requirements to ensure smooth management of the estate.
35. Will a detailed cost-benefit analysis be provided, and how will RTM avoid being overly optimistic about savings?
A full cost-benefit analysis will be conducted as soon as the RTM takes control of the estate and gains access to detailed financial data. At this point, we will carefully assess the costs and benefits of managing the estate under RTM, ensuring that our projections are realistic and sustainable. Compared to the experience at Enderby Wharf, where management costs were reduced by 30%, we are optimistic about potential savings but will remain cautious to avoid making overly positive assumptions. Our goal is to base all decisions on facts and data, balancing immediate cost reductions with long-term financial stability for the estate. Any additional costs, such as pension liabilities or maintenance reserves, will be factored into the analysis to provide a comprehensive view of the financial outlook under RTM.
