The Right to Manage lets leaseholders take over building management without purchasing the freehold and without proving fault. Learn how it works, who qualifies, and the total costs involved.
The Right to Manage (RTM) allows leaseholders to take over management of their building from the freeholder — without needing to purchase the freehold and without having to prove any fault on the freeholder's part. Introduced by the Commonhold and Leasehold Reform Act 2002, it was significantly expanded by the Leasehold and Freehold Reform Act 2024.
RTM is about management control, not ownership. The freeholder still owns the building. Leaseholders form an RTM company that takes over management responsibilities including appointing managing agents, overseeing service charges, and arranging building insurance and maintenance.
⚠ Don't confuse this with collective enfranchisement: The 50% non-residential limit applies to Right to Manage only. If you're buying the freehold outright (collective enfranchisement) rather than just taking over management, the older 25% non-residential limit still applies — the two routes were not raised together.
Unlike enfranchisement, there is no premium payable for RTM — the freeholder cannot demand compensation for losing management control. This makes RTM a zero-premium alternative, with only legal fees to pay.
Since 3 March 2025, leaseholders are also no longer generally liable for the freeholder's legal costs of a standard RTM claim — a significant change from the pre-2024-Act position, where freeholders could often pass their own legal costs back through the RTM process. Each side now typically bears its own costs, which has materially reduced the financial risk of pursuing RTM.
RTM does not remove ground rent obligations, extend leases, or allow decisions about the freehold itself. Many buildings use RTM as a first step, then pursue collective enfranchisement once all leaseholders are ready.
The Right to Manage (RTM) is a statutory right that allows leaseholders in a building to take over the management of their building — including appointing managing agents, controlling service charges, and making maintenance decisions — without having to buy the freehold. It is governed by the Commonhold and Leasehold Reform Act 2002. There is no need to prove freeholder mismanagement; the right exists regardless.
RTM transfers management control only — not ownership of the land. The freeholder still owns the building; you just run it. Buying the freehold transfers ownership of the land to the leaseholders collectively. RTM is cheaper and easier to achieve but does not allow you to extend leases for free or escape the freeholder's ultimate legal power. Enfranchisement (buying the freehold) provides stronger long-term protection.
The building must contain at least two flats. At least two-thirds of flats must be held on long leases. No more than 50% of the building's floor area can be in non-residential use (e.g. commercial) — raised from 25% on 3 March 2025. At least 50% of all qualifying leaseholders in the building must participate. There is no qualifying ownership period — you can exercise RTM immediately after purchase.
RTM itself carries no premium — there is nothing to pay the freeholder for the management rights. Since 3 March 2025, leaseholders are also no longer generally liable for the freeholder's legal costs of a standard RTM claim — each side now typically bears its own costs. You'll still pay your own solicitor's fees to form the RTM company and serve the claim, typically £1,500–£3,000 shared between participants. Ongoing costs depend on whether you self-manage or appoint a managing agent, but these are costs you would pay anyway under competent management.
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