Frequently Asked Questions

The Transition

How do we pick a board?

Once we hit our 50% participation threshold (8 signatures), we will hold a resident meeting to formally elect a "Shadow Board" of 3-5 Directors for our RTM Company.

• Criteria: We aren't looking for professional landlords; we’re looking for residents who care about the building. Experience in finance, law, project management, or just a history of actually getting things done is a plus.
• The Role: The board doesn't do the cleaning or fix the doors themselves; they oversee the Managing Agent we hire to ensure they are performing.

How much work is this relative to just letting Southern do what they want?

It is a "burst" of work upfront followed by significantly less stress later.

• Now: We are spending hours chasing Southern, documenting failures, and worrying about fire safety. That is "work" with zero ROI.
• The Takeover: The RTM process is handled largely by our appointed legal professionals and the new managing agent.
• Ongoing: Once the RTM is live, the board meets occasionally to review the budget. Switching managing agents thereafter is as simple as switching broadband providers—you just serve notice and move to a better one.

What are the stats on RTM?

• Adoption: Thousands of blocks in London have already executed RTM. It is the "standard legal manoeuvre" for escaping incompetent social housing management.
• Cost: Typically £200–£500 per flat for a block of our size. This is a one-time setup fee that pays for itself in under 3 months of savings.
• Savings: Residents typically see a 20% to 50% reduction in service charges immediately by removing "management fat" and non-competitive mega-contracts.

What about Commonhold stats?

• Current State: Only ~20 buildings exist (due to the old "100% consent" rule) but that is about to change with the new legislation. We can position ourselves for it now.
• The 2026 Pivot: The new Bill reduces the conversion threshold to 50%, making it as easy to buy the building as it is to take over management.
• Property Value: Freehold/Commonhold flats typically command a 5–10% premium over leasehold equivalent because they have "Zero Ground Rent" and "Zero Lease Decay."

What is the timeline on RTM and Commonhold?

• RTM (Step 1): 3–6 months. We incorporate the company, serve the Notice of Claim, and Southern has a statutory period to hand over the keys. We are aiming for completion before the May 2026 Capital Works framework begins. The lack of transparency over what is needed and when is a major catalyst.
• Commonhold (Step 2): Expected 2027. This depends on the Draft Leasehold and Commonhold Reform Bill receiving Royal Assent (expected late 2026). We can use RTM to assert our right over management now, and then when commonhold becomes standard in a year or two, and the communal RTM company gets in the swing of things, we can take ownership of the land as well.

What if I want RTM, but don't want Commonhold?

The conversion to commonhold will require a new majority vote. Right now it must be 100%, in a few years it will very likely be 50%. You are more than welcome to vote for one, take advantage of the improved rates, but choose not to back the other.

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Governance, Voting & Transparency

What is the "Shareholder Structure"?

We will form a Private Company Limited by Guarantee. This is a non-profit vehicle designed solely to manage the building.

• Membership: Every flat gets one membership.
• Shared Owners: Since March 2025, Shared Owners have 100% equal membership rights under the Leasehold and Freehold Reform Act 2024. Your vote counts the same as an outright owner.
• The Board: We will democratically elect a Board of Directors (3–5 residents). Directors are volunteers and can be voted out by the membership at any time.

How can you guarantee transparency?

We are replacing Southern's "black box" with a radical transparency model:

1. Communal Google Group/Drive: Every single invoice, utility bill, and repair receipt will be uploaded in real-time. If the RTM company spends £10 on a lightbulb, you will see the receipt that same day.
2. 24/7 Contract Access: All contracts with cleaners, lift engineers, and managing agents will be public to all members. No hidden "backhanders" or opaque regional framework agreements.
3. Open Ledger: Our managing agent will be required to provide a live-access portal to the building's trust account.
4. Replacement Policy: Because of the transparency, anyone is free at any time to tender a new quote and reduce the bills for themselves and their neighbours.

How do we vote?

• One Flat, One Vote: Major decisions (e.g., "Do we keep this cleaner?" or "Which insurance quote do we pick?") are decided by members, voted on, and the outcome is stored forever.
• Day-to-Day: The Board makes routine operational decisions to keep the building running, but they are bound by the budget you approve at the Annual General Meeting (AGM).

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Safety & Safeguards

What happens to my leasehold?

It depends on which step we are in:

• Step 1 (RTM): Your lease remains exactly as it is. It is still a legal leasehold, but the "Landlord" powers are transferred to us.
• Step 2 (Commonhold): Your lease is cancelled and replaced with a Freehold Title. This is the ultimate goal—owning the bricks and mortar of your flat forever. Instead of a leasehold, your relationship with the commonhold is goverened by the CCS.

Who actually holds my money?

The RTM company holds your service charges in a ring-fenced Trust Account.

• Legal Protection: This money does not belong to the Directors or the Managing Agent; it is held on trust for the residents of Odyssey House.
• Professional Management: While we control the decisions, a professional, RICS-regulated managing agent handles the actual accounting to ensure compliance with the Landlord and Tenant Act.

What if the RTM Board is worse than Southern?

You have the power of The Recall.

• Under Southern, you are a "customer" with no power.
• Under RTM, you are a Member. If the Board is unresponsive or incompetent, the membership can call an Extraordinary General Meeting (EGM) and vote them out with a simple majority.

What happens if a neighbour stops paying their service charge after the RTM takes over?

This is a crucial question. Because our RTM company will be a non-profit entity running strictly on the actual costs of the building, we will not have a massive corporate buffer. Every flat must pay its proportional share to keep the building insured, cleaned, and maintained. If a leaseholder or shared owner refuses to pay, we have a robust, legally enforced collection process. Importantly, the volunteer resident board does not knock on doors to collect debts. This is entirely handled by the professional managing agent we hire, and the process will be essentially the same under them as it is today.

Here is the exact legal escalation process our agent will follow:

1. Standard Credit Control: Just like any management firm, our agent will have a standard credit control process. If a payment is missed, the leaseholder receives formal reminders. If the lease permits, administrative late fees and statutory interest will be added to their account.

2. Legal Determination (First-tier Tribunal / County Court): If the leaseholder ignores the reminders, the RTM company has the statutory power to instruct solicitors to recover the debt. We would apply to the County Court or the First-tier Tribunal (FTT) to secure a formal judgment for the arrears. Under most leases, the legal costs for this recovery action are added directly to the non-paying leaseholder's debt, meaning the rest of the building does not subsidise their legal fees.

3. The Mortgage Lenders: Once a debt is formally determined, our managing agent will contact the non-paying leaseholder's mortgage lender. Lenders absolutely hate service charge arrears because it threatens their security on the property. In almost all cases, the bank will step in, pay the arrears directly to our RTM company to clear the debt, and add the cost directly to the leaseholder's mortgage.

4. The Forfeiture Rule: There is one power the RTM company does not have: we cannot "forfeit" a lease (legally repossess the flat). Only the freeholder (Southern Housing) has that power. However, if a debt remains unpaid after a tribunal judgment, the RTM company has the statutory right to formally notify Southern Housing, who are then legally empowered to initiate forfeiture proceedings against that leaseholder on our behalf.

The Bottom Line:

Under RTM, residents are far less likely to withhold service charges because the budget is entirely transparent, fair, and locally managed. However, if someone does default, our managing agent has the full weight of leasehold law and the mortgage lenders to ensure the building is not left out of pocket.

And what happens if someone stops paying their contributions after we convert to Commonhold?

Debt recovery under Commonhold is fundamentally different—and much fairer—than under the current leasehold system.

In a leasehold, the ultimate threat is "Forfeiture," where a freeholder (like Southern Housing) can legally threaten to seize a £400,000 flat over a £500 disputed debt. Commonhold completely abolishes forfeiture. Because you own the freehold of your flat outright, nobody can arbitrarily seize it.

However, the Commonhold Association (the company we all jointly own) still has incredibly strong, modern legal powers to ensure everyone pays their fair share of the building's upkeep. As with RTM, our professional managing agent handles this entire process—the resident board never acts as debt collectors.

Here is how the Commonhold debt recovery process works:

1. The Internal Dispute Resolution Procedure: Under a Commonhold Community Statement (CCS), there is a mandatory, fast-track internal dispute resolution process. If a resident stops paying because they are unhappy with a service, the issue is handled locally and transparently through the association, rather than immediately escalating to an expensive tribunal.

2. Standard Debt Recovery (CCJs): If a unit owner simply refuses to pay their commonhold assessment (the equivalent of a service charge), the managing agent will initiate standard credit control. If the debt persists, the Association applies to the County Court for a County Court Judgment (CCJ). The CCS ensures that the legal and administrative costs of recovering this debt are charged directly to the non-paying unit owner, protecting the rest of the building's funds.

3. Charging Orders: Because forfeiture is abolished, how do we force payment of a severe, long-term debt? The Association can apply to the court for a Charging Order against the non-paying resident's freehold title. This means the debt is legally attached to their property at HM Land Registry. They cannot sell or remortgage the flat without paying the Association first. In extreme cases of prolonged non-payment, the court can grant an Order for Sale. The property is sold, the Association takes exactly what it is owed from the proceeds, and the remaining equity is returned to the owner. This ensures the building is always made whole without the disproportionate penalty of forfeiture.

4. Mortgage Lenders: Just like in a leasehold, mortgage lenders hate seeing charging orders placed ahead of them on a property's title. If a unit owner falls into arrears, their bank will almost always step in to clear the debt with the Association directly, adding the balance to the owner's mortgage.

The Bottom Line:

Commonhold treats residents like adult property owners. It removes the threat of a landlord stealing your equity over a minor dispute, but provides the building with robust, court-enforced mechanisms (CCJs and Charging Orders) to guarantee the communal budget is always protected.

Is my mortgage at risk?

No. Lenders (including Barclays, HSBC, and Nationwide) generally prefer RTM and Commonhold.

• It removes the risk of "Lease Forfeiture" (where a landlord tries to seize a flat over a small debt).
• It ensures the building is maintained to protect the lender's security, rather than being used as a revenue stream for a housing association.
• Lenders generally prefer lending money against building with a lower service charge which means it is easier to sell, and for a higher price.

What will happen to Southern's invalid pre-emption clause when switching to commonhold?

The pre-emption clause (Right of First Refusal) currently found in many of our leases is invalid because it lacks specific protections for mortgage lenders. This makes the property difficult to remortgage or sell, as banks are often unwilling to lend on titles where their ability to sell the property after a repossession could be hindered by a housing association's interference.

The Price of Fixing it Now (Deed of Variation): To remove or fix this clause today, you must obtain a Deed of Variation (DoV). Even though Southern Housing (or the original developer) drafted the defective paperwork, the cost to fix it falls entirely on you. Because you are legally required to pay for both your own solicitor and Southern’s legal/admin teams, the costs are substantial:

The Commonhold Solution (Total Evaporation): When we transition to Commonhold, this invalid clause doesn't just get edited; it completely evaporates along with the lease itself.

• Lease Termination: The conversion process legally extinguishes your existing lease at HM Land Registry.
• Contract Disposal: The entire 100+ page contract containing the invalid clause is discarded.
• Standardised Title: You are issued a new Freehold Title, governed by a standardised, lender-friendly Commonhold Community Statement (CCS) that contains no such restrictive pre-emption terms.

By converting collectively, we replace individual bills of ~£2,500 with a single building-wide legal exercise, permanently securing every unit's mortgageability at a fraction of the per-flat cost.

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Rights & Logistics

What happens if I don't want this but the majority proceeds? Is it more work for me?

If 50% of the building votes for RTM, the management transfers for the entire building.

• Your benefit: You still get the reduced service charges and the functional front door.
• Your obligation: You pay your service charge to the RTM company (or their agent) instead of Southern.
• Your choice: You don't have to be a member or a director if you don't want to be involved in the decision-making.

Is commonhold actually going to be the new standard?

Yes. As of the Draft Commonhold and Leasehold Reform Bill (published January 2026), the UK government is officially phasing out the leasehold system.

• The Ban: The Bill aims to ban the sale of new leasehold flats, making Commonhold the default tenure for all new-build developments by 2029.
• The Pivot: For existing buildings like ours, the Bill reduces the consent threshold for conversion from 100% to 50%.
• The Momentum: Leasehold is now legally classified as a "feudal" system. By moving to RTM now, we are future-proofing our assets before the 2029 mandate makes leasehold properties harder to sell.

How does this work with the social housing/council flat next door?

Odyssey House is vertically separated from the neighbouring council units with a separate entrance and utilities. We can legally separate from them.

• Tenure: Southern Housing will remain the "unit owner" for any social housing or un-bought shared ownership shares.
• Equity Partner: Southern effectively becomes a "leaseholder" within our structure for the flats they still own. They pay their share of the service charges to us, but they lose the power to dictate which mega-contractors we use. We effectively invert the control.

How does this impact Section 20 (future) and 20B (past) works?

This is the "Golden Ticket" of RTM:

• Section 20B (The £1.2M): By taking over management, we gain full access to the books. We can use the RTM company’s standing to challenge the "reasonableness" of these historic charges in the Tribunal with far more weight than an individual resident.
• Section 20 (The 10-Year Contract): If we execute RTM before the May 2026 start date, we escape the Axis Europe regional framework. We can tender the door repairs and external works to local firms at competitive prices instead of being an ambiguous line item in a £1.7 billion mega-deal.

I am considering moving soon. How does this impact me? Should I vote?

In short, positively! And, I'd like you to consider it. RTM delivers lower service charges meaning banks are more likely to lend against your property. The real value is unlocked in 1-2 years time when new leaseholds are banned with the new legislation, and leasehold-turned-commonhold is normal. Freeholds/commonholds are have a value preimium, and by adopting the standard 'commonhold community statement' converyancing goes much faster. Less beauraeucracy, better value, more control, and increased property values.

Can we stop people from turning their flats into Airbnbs?

Yes. Under the 2026 Commonhold reforms, residents are granted the explicit statutory power to ban short-term holiday lets (like Airbnb).

By passing a "Local Rule" in our Commonhold Community Statement (CCS) with a 75% majority vote, we can legally prohibit short-term lettings. This ensures Odyssey House remains a secure, stable residential community rather than an unmanaged hotel, while still protecting your right to rent out your flat on standard long-term residential tenancies.

Can we improve security beyond just fixing the front door? (e.g., adding a gate, or a camera out back)

Yes. Currently, if we want to install a security gate at the back of the property to deter the anti-social behaviour and suspected drug dealing reported around the car park, Southern Housing would either ignore the request or trap us in years of "consultation."

Under Right to Manage (RTM), the resident board has the power to commission building improvements. We can gather quotes from local security firms, vote on it as a community, and install it ourselves using our own budget.

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Support & Involvement

How can I be more involved?

• The "Must-Do": Sign the Mandate. We cannot move without 8 signatures.
• The "Help-Out": We need people to help with "Ground Truth" auditing—checking if cleaners actually showed up, taking photos of repairs, or helping review the Section 22 invoices when they arrive.
• Consider becoming a director: We ideally need 3 or 5 to prevent stalemates and ensure everyones interests are respected.
• Spread the Word: Talk to your neighbours. Many aren't aware that shared owners now have the same voting rights as 100% owners.

I have another question, who can I ask?

We believe in absolute transparency. You have three ways to get answers:

1. Ask the communal WhatsApp chat: Most of us are learning this together in real-time.

2. Ask an AI: You can all of our documents using the button below, and paste them into a tool like ChatGPT, Gemini, or Claude. Ask it: "Based on these documents, what is the risk of X?" or "Summarise the intercom dispute."

   Copy All Documentation

3. Ask Me: Drop me a message or find me in the building (Flat 10). I'm happy to walk through the spreadsheets and legal notices with you.

Anything not covered here will be added.