The Right to Manage (RTM) is a statutory right granted to leaseholders by the Commonhold and Leasehold Reform Act 2002, allowing qualifying leaseholders in England to take control of the management of their building without needing to prove fault on the part of the landlord or the managing agent.
At Grant Saw Solicitors, with offices in Greenwich and Blackheath, we advise leaseholders and landlords across London and the South East on the exercise of the Right to Manage efficiently and successfully. Whether you leaseholders who are at the early stages of considering RTM or ready to proceed, or a landlord who must respond to an RTM claim, our specialist RTM solicitors can guide you through each step.
What is the Right to Manage?
Leaseholders can form a Right to Manage company (RTM company) and assume the building management responsibilities outlined in their leases. To qualify:
- At least 50% of qualifying tenants (leaseholders) must participate.
- The building must not be exempt.
- No more than 50% of the building may be non-residential (excluding common parts).
If the criteria are met, the RTM company is entitled to take over the landlord’s management responsibilities.
Why leaseholders choose the right to manage
Exercising RTM provides a range of benefits, including:
- Control over service charges – ensuring fair spending and better value.
- Appointing your own managing agent – selecting someone who works directly to your instructions.
- Choosing the buildings insurance policy – tailoring coverage to your block’s needs.
- Reducing delays and disputes – avoiding obstructive landlords or inefficient managing agents.
RTM is a powerful option for leaseholders seeking autonomy and better building management.
Costs and responsibilities
Unlike buying the freehold through collective enfranchisement, exercising the RTM does not require paying a premium. So long as the RTM claim is successful leaseholders do not have to pay the landlord’s legal and administrative costs in relation to the claim. This makes the RTM process accessible and cost-effective.
The right to manage process
At least 50% of the qualifying tenants of the flats in the building must participate in the RTM claim.
An RTM company owned by the participating tenants must be formed.
After any non-participating tenants are invited to join in, a claim notice must be given to the landlord.
The proposed date for acquisition of the RTM must be at least 4 months after the claim notice is given.
If the landlord challenges the eligibility of the tenants or the building for the RTM then the matter an no agreement about this is reached then the matter must be determined by the First-tier Tribunal.
If the RTM claim is successful then the management functions are transferred to the RTM company on the acquisition date. The RTM company is then responsible for managing the building.
Our team assists with every stage from eligibility checks to completing the RTM process smoothly and compliantly.
Contact our right to manage solicitors
If you are leaseholders considering exercising your Right to Manage or landlords who must deal with an RTM claim or if you need advice on leasehold management issues, our specialist property lawyers can help.
For more information, please email us or contact us on 020 8858 6971.
