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.
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.
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 25% of the building's floor area can be in non-residential use (e.g. commercial). 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. However, you must pay the freeholder's reasonable legal costs of the RTM process (typically £500–£2,000) and your own solicitor's fees (£1,000–£3,000). 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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