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Right To Manage

If leaseholders are unhappy with how their block is managed, or simply want more control, they may be able to exercise the Right to Manage. Management passes from the freeholder to an RTM company run by leaseholders, who can then appoint their own managing agent.

Who can use Right to Manage?

To qualify, the building and participating leaseholders generally need to meet these conditions:

Qualifying tenantsAt least two-thirds of flats must be held by qualifying tenants (original lease term over 21 years).
ParticipationThe claim must be made by qualifying tenants in at least half of the total flats (e.g. 5 of 10). If there are only 2 flats, both must take part.
Mixed useCommercial space is allowed, but non-residential floor area must not exceed 25% (common parts excluded).
Resident landlord exemptionRTM can’t be used where the building is a conversion with no more than 4 flats, and the freeholder or a close family member has lived in one flat as their only or main home for at least 12 months before the claim.
Local authority landlordsRTM is not available where the landlord is a local housing authority.

On estates with several blocks, RTM works block by block. Each block must make its own claim.

What RTM lets you do

  • Leaseholder directors decide who manages the block, either self-managing or appointing a managing agent
  • The RTM company takes over day-to-day management: service charges, maintenance, major works planning, health and safety compliance and insurance administration, subject to the lease
  • The freeholder keeps the rights set by law and the lease, such as membership of the RTM company, receiving notices and being consulted

The RTM process

1. Check eligibilityConfirm the building qualifies and enough leaseholders want to take part.
2. Form the RTM companyA limited company with standard RTM articles. Participating leaseholders become members and directors.
3. Serve noticesNotices Inviting Participation to other leaseholders, then the Claim Notice to the landlord.
4. Landlord responseThe landlord may serve a counter-notice, for example disputing eligibility.
5. Acquisition dateIf valid and unopposed, or once any dispute is resolved, management transfers on the set date.
6. HandoverRecords, contracts and funds are collected, with practical arrangements agreed for a smooth transition.

If the landlord is absent or can’t be traced, the claim can still go ahead with appropriate evidence and, if needed, an application to the First-tier Tribunal (Property Chamber).

How we help

  • Feasibility check: eligibility, lease structures, participation thresholds and tricky points such as mixed use, conversions or landlord status
  • RTM company set-up: incorporation, acting as Company Secretary and handling filings
  • Notices and timetable: preparing and serving every required notice correctly and on time
  • Landlord and agent liaison: coordinating handover of records, funds, contracts and compliance documents
  • Ongoing management: if appointed, full block management with budgets, service charge collection, maintenance, compliance and reporting through our client portal

Prefer to self-manage? We can tailor a lighter-touch service or provide consultancy during the transition.

Frequently asked questions

Do leaseholders need the freeholder’s permission?

No. RTM is a statutory right if eligibility and procedure are met.

Does every leaseholder have to join?

No, but you must reach the minimum participation of half of all flats, and every qualifying leaseholder must be invited.

What if the landlord objects?

They may serve a counter-notice. Disputes are usually decided by the First-tier Tribunal. If your claim is valid, management will still transfer.

Who pays the costs?

The RTM company typically covers its own reasonable costs and certain landlord costs relating to the claim. We’ll explain expected costs upfront.

Can we change managing agents after RTM?

Yes. The RTM directors choose who manages and can change agents in line with contract terms.

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