Tribunal appointed manger: A Comprehensive Guide

A rarely used specialist remedy available to leaseholders by application to the First-tier Tribunal.

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Understanding the Process of Appointing a Tribunal Manager Through the FTT

If you’re a leaseholder struggling with the mismanagement or neglect of your building and it isn't an option to buy the freehold under the collective enfranchisement process or exercise the Right to Manage, the appointment of a Tribunal Manager by the First-tier Tribunal (FTT) can be an effective solution. For an estimate of costs for legal help, head to 

This process allows for the management of a building to be transferred to a building manager by Order of the Tribunal, bypassing the need for agreement from the freeholder or other leaseholders. Below, we’ll explain the procedure, costs, and expectations for this process, while focusing on the role of the Tribunal appointed manager.

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Objectives: Why Seek a Tribunal-Appointed Manager?

The primary goal of putting in place a Tribunal appointed manager is to establish a medium- to long-term solution for the professional management of your building. This may be with a view to selling the flat once repairs are carried out or simply to bring the building into a habitable state.

This process is particularly useful in cases where decision-making is deadlocked, often due to disputes between leaseholders and freeholders. It is in particular this remedy can be useful where the freeholder owns flats within a building and is therefore adverse to incurring maintenance costs it will need to contribute to itself.

Once appointed, the Tribunal Manager assumes responsibility for:

- Collecting service charges from all parties, including leaseholders and freeholders.

- Organising maintenance and repair works in a methodical and logical way.

- Ensuring the building is brought into a state of proper management and maintenance.

Unlike traditional property managers, a Tribunal-appointed manager reports directly to the FTT, not the leaseholders or freeholders. This independence ensures that management decisions are made impartially and in the best interests of the building. A Tribunal appointed manager can bring proceedings for non-payment of service charges, and has an incentive to follow through with this in order to meet their obligations to the Tribunal.

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The Role of the First-tier Tribunal (FTT)

The FTT is the legal body that oversees property disputes, including the appointment of managers. It ensures that leasehold legislation, lease agreements, and the RICS (Royal Institution of Chartered Surveyors) Management Code are adhered to. The Tribunal only appoints a manager when there is evidence of serious mismanagement or breaches of leasehold obligations.

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Procedure for Appointing a Tribunal Manager

The process for securing a Tribunal-appointed manager typically follows these steps:

1. Preliminary Review and Evidence Gathering  

Your solicitor will review the lease covenants and gather information on the lack of management or acts of mismanagement by the freeholder. This involves compiling a detailed list of issues to be relied on later in the process. This also allows your solicitor to assess the strength of your case.

2. Issuing an Initial Notice

An initial notice is drafted and sent to the freeholder, detailing the alleged breaches and providing a 4–6 week period for rectification. This step offers the freeholder a chance to resolve issues without escalating to the Tribunal. In practice, many of the issues may be incapable of remedy, for example, if years of service charge accounts are in dispute, this is unlikely to be resolved within six weeks.

3. Submitting an FTT Application

If the freeholder fails to act, your solicitor will submit a formal application to the FTT. This application sets out the breaches and requests the Tribunal to appoint a manager.

4. FTT Directions and Evidence Submission

The Tribunal issues directions, including deadlines for submitting evidence. Leaseholders must provide witness statements, photographs, and supporting documents to substantiate their claims.

5. Preparing for the Hearing

Your solicitor will prepare evidence and coordinate with a barrister to represent you at the Hearing. The proposed manager will also attend to demonstrate their qualifications and suitability.

6. The Tribunal Hearing

During the hearing, the FTT assesses the evidence and decides whether the grounds for appointing a manager are met. There must be breaches of the lease and it must be equitable in all the circumstances to make the appointment. The freeholder is losing control of their property and the threshold for obtaining the Order is high, though achievable.

If satisfied, the Tribunal will issue an order appointing the manager, typically for a term of 1–3 years.

7. Registration of the Tribunal Order

 The Tribunal’s Order is registered at the Land Registry. This ensures it is binding on all parties with an interest in the building, including future owners.

8. Implementation by the Manager  

The Tribunal-appointed manager begins their role, contacting all affected parties and taking over management responsibilities. Given that this right is usually exercised in respect of poorly managed buildings, there is usually a need for surveyors and a plan of action, followed by requests for monies on account of expected service charge expenditure.

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Grounds for Appointment of a Tribunal Manager

The FTT will only appoint a manager if specific legal grounds are met. These include:

- Significant breaches of lease agreements, such as failure to maintain common areas or enforce leaseholder obligations.

- Non-compliance with leasehold management legislation or the RICS Management Code.

- A likelihood that these breaches will continue without intervention.

The FTT also ensures the proposed manager is qualified to handle the complexities of managing the building. Experienced managers with prior Tribunal appointments or relevant certifications are preferred. It would be very unlikely for a party without formal property management experience or qualifications to be appointed.

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Costs of Appointing a Tribunal Manager

The costs for handling a Tribunal application typically range from £1,000 to £2,000 but may be more if Tribunal Directions are lengthy. It’s important to note that these costs are usually not recoverable from the freeholder, even in cases of clear mismanagement.

Tribunals have limited authority to award costs, and such awards are only granted in extreme cases of misconduct by the freeholder.

Leaseholders should explore their insurance policies or legal expenses cover, which might provide financial support for the application process.

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Timescales for FTT Applications

The process of appointing a Tribunal Manager can take anywhere from 6 to 18 months, depending on the FTT’s caseload and the complexity of the case. While this timeline might seem lengthy, it reflects the Tribunal’s thorough approach to ensuring fair and justified outcomes.

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Registration and Binding Effect of the Order

Once the Tribunal issues its order, it is registered at the Land Registry. This registration:

- Makes the order binding on all parties with an interest in the property, including leaseholders, freeholders, and management companies.

- Ensures visibility of the order on the public Land Registry, serving as notice to future buyers or stakeholders.

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Key Considerations and Potential Challenges

While the appointment of a Tribunal Manager can resolve many issues, there are some considerations:

- Litigation is inherently unpredictable. While your solicitor will aim to present a strong case, outcomes cannot be guaranteed and each case will be decided on its own facts.

- In some cases, additional Hearings may be required, or an alternative manager may need to be proposed if the Tribunal deems the initial candidate unsuitable.

- It will be a more expensive procedure than an RTM claim, which doesn't require the finding of any fault of the freeholder.

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Conclusion

The appointment of a Tribunal Manager by the FTT provides a long term solution to building mismanagement. It is not however fast or inexpensive. While the process requires careful preparation and patience, the benefits of professional and unbiased management far outweigh the challenges. An unsellable flat in a problem building can be remedied. A nightmare property can become a home to be enjoyed again.

Leaseholders seeking to appoint a Tribunal-appointed manager should consult experienced leasehold solicitors to guide them through the application process and ensure the best possible outcome for their building. They should also consider other leasehold remedies such as the Right to Manage, as lower cost alternative.