Want to be rid of your landlord but buying the freehold isn’t an option for you? Read our note about the Right to Manage procedure:

Email the Leasehold Property Team: leaseadvice@meaby.co.uk

What is the right to manage?

The right to manage (RTM) provides leaseholders with the right to transfer management of the building from the Landlord to an RTM company. This company will be comprised of the leaseholders of the building. The company will then make decisions regarding annual budgets, repairs, services provided, major works and any other management functions.

The RTM can be acquired without the landlord’s permission and there is no requirement to prove that the landlord’s management is unsatisfactory. However, the building and leaseholders must meet certain requirements. The main requirement is that at least two-thirds of the flats must be let to qualifying tenants. A qualifying tenant is a leaseholder with a lease of more than 21 years (from the date that it was granted).

What is the legal process?

  1. Establish with your solicitor whether you meet the requirements.
  2. Form the RTM Company (this must be formed of qualifying tenants totalling at least half of the number of flats in the building).
  3. Send a notice inviting participation to all qualifying leaseholders who are not at the time part of the RTM company.
  4. Serve a notice of claim on the Landlord. This is the document that exercises the RTM and sets a date for when the RTM Company will take over management functions.
  5. Provided there is no dispute of entitlement in the counter notice from the Landlord, the RTM Company takes over management on the acquisition date stated in the notice of claim.
  6. Register the RTM with the Land Registry.

Should I consider acquiring the RTM?

Common reasons that leaseholders acquire the RTM are:

  • To keep the costs of managing the building to a reasonable minimum;
  • To ensure that their asset (their flat) is protected and carefully looked after;
  • To ensure repairs are carried out promptly and in a cost effective manner;
  • If they feel that the Landlord is not adequately managing the building; and
  • If they are concerned about the costs of repairs or major works