Property Foundations

Right to Manage

If your freeholder or managing agent is unresponsive, expensive, or simply not doing a good job, you don't need to prove fault or buy the freehold to fix it. Right to Manage lets qualifying leaseholders take over the day-to-day running of their building directly.

1. What is Right to Manage?

Right to Manage (RTM), introduced under the Commonhold and Leasehold Reform Act 2002, is a statutory right allowing qualifying leaseholders to take over management of their building through a company they control — the RTM company — without having to prove the freeholder or existing managing agent has done anything wrong, and without buying the freehold itself.

Once the RTM company takes over, it becomes responsible for arranging buildings insurance, managing repairs and maintenance, collecting service charges, and choosing (or replacing) the managing agent.

2. Are you eligible?

  • At least two-thirds of the flats in the building must be held on long leases (originally granted for more than 21 years).
  • At least half of qualifying leaseholders must participate in the RTM claim.
  • No more than 25% of the building's floor area (excluding common parts) can be in non-residential use.
  • The building must contain at least two flats held by qualifying tenants.

Unlike collective enfranchisement, there is no minimum period of ownership required and no need to pay the freeholder a premium — RTM is about taking over management, not ownership.

3. The process, step by step

Step What happens
1. Form the RTM company Set up a company limited by guarantee to act as the vehicle for the claim.
2. Invite participation Serve notices inviting all qualifying leaseholders to become members.
3. Serve the Claim Notice A formal notice is served on the freeholder (and any existing managing agent) setting out the RTM company's intention to take over.
4. Freeholder response window The freeholder has a set period to serve a Counter Notice, which can only dispute the claim on limited legal grounds — not simply because they object.
5. Acquisition date If undisputed, management responsibility transfers to the RTM company on the agreed date.

4. What changes once you take over

The freeholder still owns the freehold — RTM does not transfer ownership of the building or the land. What changes is who controls the day-to-day running of it. Your RTM company will typically need to:

  • Appoint a managing agent (or self-manage, though this is uncommon for larger buildings).
  • Arrange buildings insurance and manage the service charge budget.
  • Handle repairs, maintenance and any major works consultations under Section 20.
  • Keep proper company and financial records, since directors of the RTM company take on legal responsibilities.

5. What it will cost

You do not pay the freeholder a premium to exercise Right to Manage. However, you will usually need to cover:

  • Your own set-up costs — company formation and any solicitor's fees for serving the claim.
  • The freeholder's reasonable costs in responding to the claim, which the RTM company is generally required to pay.
  • Ongoing management costs once you take over, such as a managing agent's fees, though these replace rather than add to what you were already paying.
Pro Tip

Talk to your neighbours before committing to gauge interest, and contact the Leasehold Advisory Service (LEASE) for a free eligibility check before starting the formal process.

6. Related tools and guides

Understanding your current costs helps you decide whether RTM is worth pursuing:

Service Charge Calculator

Benchmark your current service charge to see whether self-managed costs are likely to come in lower.

Launch Tool →
Ground Rent Checker

Check your ground rent position — RTM doesn't remove ground rent, but it's worth reviewing alongside management costs.

Launch Tool →
Lease Extension

RTM doesn't affect your lease length either — check what an extension would cost if your lease is also short.

Launch Tool →
Pro Tip

If ground rent, an unresponsive freeholder and short leases are all issues for your building, read our guide to buying the freehold — a bigger step, but one that resolves all three at once. And if you're currently in dispute over service charges, see your rights as a leaseholder.