Right to Manage
The right to manage lets leaseholders of a qualifying block take over management from the freeholder without buying the freehold and without proving fault. It is a no-fault statutory right under the Commonhold and Leasehold Reform Act 2002 — but the process is technical, and most failed claims fail on procedure rather than principle.
Talk to us about RTM
Tell us the block, how many flats, and how far along you are. We'll explain the next step and what management would cost once you have it.
Does your block qualify?
- The building is a self-contained building or part of a building
- At least two-thirds of the flats are held on long leases (originally granted for more than 21 years)
- At least 75% of the floor area, excluding common parts, is residential
- At least half of the qualifying leaseholders participate in the RTM company
- The block is not excluded — the main exclusions are local authority landlords and buildings with more than 25% non-residential floor area
The process, step by step
| Step | What happens | Timing |
|---|---|---|
| Check eligibility | Confirm the building, lease lengths and participation threshold | Before anything else |
| Form the RTM company | Company limited by guarantee with prescribed articles; every qualifying leaseholder entitled to join | 1–2 weeks |
| Notice inviting participation | Served on every qualifying leaseholder not already a member | At least 14 days before the claim notice |
| Claim notice | Served on the landlord and any management company | Specifies an acquisition date at least 3 months after the counter-notice date |
| Counter-notice | Landlord admits or disputes the claim | Within 1 month of the claim notice |
| Tribunal (if disputed) | First-tier Tribunal determines entitlement | Application within 2 months of the counter-notice |
| Acquisition date | Management functions transfer to the RTM company | Per the claim notice, or 3 months after a tribunal determination |
What actually transfers — and what does not
On the acquisition date the RTM company takes over the management functions under the leases: repair and maintenance of the common parts, insurance, services, and the service charge. Uncommitted service charge funds must be handed over.
What does not transfer: ownership of the freehold, the right to grant lease extensions, forfeiture, and functions relating to any part of the building outside the claim. Ground rent continues to be payable to the freeholder, who is also entitled to membership of the RTM company.
The mistakes that sink claims
- Getting the notice content or service wrong — the statutory forms are prescriptive
- Missing the notice inviting participation, or serving it fewer than 14 days before the claim notice
- Miscalculating the acquisition date so it falls short of the statutory minimum
- Failing to identify all landlords and intermediate landlords who must be served
- Withdrawing and re-serving without realising a withdrawn claim carries a 12-month bar on a fresh claim for the same premises
Day one after acquisition
The claim is the easy half. From the acquisition date the RTM company is running a building: setting a budget, insuring it, holding service charge on statutory trust, keeping it compliant and consulting on works.
We are frequently appointed at the acquisition date to take that on — budget set before the first demand, insurance placed independently rather than inherited, compliance re-baselined with a fresh fire risk assessment, and contractors re-tendered rather than adopted from the outgoing agent.
Frequently asked questions
How many leaseholders are needed for right to manage?
Members of the RTM company must include leaseholders of at least half the flats in the building. The building must also have at least two-thirds of its flats held on long leases and no more than 25% non-residential floor area.
Do we need a reason to exercise the right to manage?
No. RTM is a no-fault right — you do not have to prove mismanagement. That is the main practical advantage over applying to the tribunal to appoint a manager, which does require fault.
How long does the right to manage process take?
Typically four to six months from forming the company to the acquisition date where the landlord does not dispute the claim. A disputed claim that goes to the First-tier Tribunal usually adds several months.
Does right to manage remove the ground rent?
No. Ground rent remains payable to the freeholder, who continues to own the freehold. RTM transfers management functions only; buying out the ground rent requires a lease extension or collective enfranchisement.
Can an RTM company appoint a managing agent?
Yes, and most do. The RTM company holds the management functions and can appoint a professional agent to carry them out, exactly as an RMC would.