Right to Manage: How Leaseholders Can Take Control of Their Building

Right to Manage, introduced by the Commonhold and Leasehold Reform Act 2002, lets qualifying leaseholders take over management of their building from the freeholder. It is a right in itself: leaseholders keep their leases as they are and simply take control of how the building is run.

Does your building qualify?

• It must be a self-contained building, or a self-contained part of one, with at least two flats
• At least two-thirds of the flats must be held by qualifying long leaseholders
• Non-residential space must be within the statutory limit (currently up to 25% of the internal floor area, a limit the Leasehold and Freehold Reform Act 2024 will raise once that part is in force)

The process

• Form an RTM company limited by guarantee
• Serve notice inviting all qualifying leaseholders to participate
• Serve a claim notice on the landlord once at least half the flats are members
• The landlord can serve a counter-notice, admitting or disputing the claim
• If the claim is admitted or upheld, management passes to the RTM company on the acquisition date

After the acquisition date

The RTM company takes on the landlord's management functions, including repairs, services, insurance arrangements in many cases, and service charges. Most RTM companies appoint a professional managing agent, so their volunteer directors have support with the work and the legal duties.

We help RTM companies with the transition: collecting funds and records from the outgoing manager, setting a first budget and putting the right contractors in place from day one.