Right to Manage lets leaseholders take over building management without buying the freehold or proving fault. How it works and who qualifies.
If your main problem with leasehold is how the building is run, rather than who owns it, the Right to Manage (RTM) may be the right tool. It lets the leaseholders take over the management of their building from the landlord without buying the freehold, and without having to show that the landlord has done anything wrong. This guide explains what you gain and do not gain, who qualifies, how a claim runs and what it costs.
RTM was introduced by Part 2 of the Commonhold and Leasehold Reform Act 2002, and expanded by the Leasehold and Freehold Reform Act 2024. Leaseholders form an RTM company, which takes over the landlord's management functions: arranging repairs and maintenance, appointing and instructing the managing agent, setting and collecting service charges, and dealing with consents under the leases. The freeholder keeps ownership and the ground rent.
The notices have strict content and timing requirements and an invalid notice can fail, so most groups use a specialist adviser.
You will need to pay for forming the company, specialist help with the notices and a managing agent (or the time of volunteers if you self-manage). There is no standard fee schedule, so get a fixed-fee quote for the claim from a specialist.
The biggest change is that, since 3 March 2025, leaseholders are generally no longer liable for the landlord's costs of an RTM claim. Before that date the RTM company usually had to pay the landlord's reasonable costs, whatever the outcome of the claim. Now each side normally bears its own, which reduces the financial risk of starting a claim. The same cost reform for lease extensions and enfranchisement is in the 2024 Act but not yet in force.
RTM does not give you a longer lease, reduce ground rent or give you ownership. Many buildings use RTM as a first step to improve management, then move to collective enfranchisement later if owners want the freehold. If your issue is a specific unreasonable service charge, you can also challenge it at the First-tier Tribunal without taking over management. See service charges and the commission ban.
The Right to Manage is a statutory right of leaseholders in a building of flats to take over its management from the landlord through a company they control, without buying the freehold and without proving the landlord has done anything wrong. It comes from Part 2 of the Commonhold and Leasehold Reform Act 2002.
RTM transfers management only: the freeholder keeps ownership and the ground rent, and there is no premium to pay. Buying the freehold through collective enfranchisement transfers ownership at a statutory price. RTM does not extend your lease or reduce ground rent.
The building must be self-contained with at least two flats, at least two-thirds of the flats must be held by qualifying tenants on long leases, and qualifying tenants of at least half of the flats must be members of the RTM company. Non-residential floor area can be up to 50% since 3 March 2025 (previously 25%). A resident landlord exception can apply to small buildings.
There is no fixed fee. You pay to form the company, for specialist help with the notices and for ongoing management. Since 3 March 2025 leaseholders are generally no longer liable for the freeholder's costs of the claim, so each side bears its own. Get a fixed-fee quote from a specialist and shared costs among participating leaseholders.
If the landlord does not object, the company takes over three months after the date given in the claim notice for a counter-notice, so the formal process after the notice is a few months. Forming the company and inviting participants first adds time, and a challenge to the claim at the Tribunal adds more.
🇺🇸 American buying a UK flat?
The American's Guide to Buying a UK Leasehold Flat
30 pages. Ground rent, the 80-year rule, marriage value, stamp duty, US tax reporting and the 2026 reforms — all in plain American English. Written by Rahul Tandon, LeaseVault founder.
This guide is researched from official and primary sources. Check them directly before relying on any figure or date.
We'll email you when 2024 Act provisions come into force and when new premium rates are confirmed.
Get your instant lease extension estimate using official RICS rates.
Calculate Now →This article is for general information only and does not constitute legal or financial advice. Always consult a specialist solicitor and RICS surveyor before taking any action.
We'll notify you when 2024 Act provisions come into force, new rates are published, and when landmark Tribunal decisions affect your premium.