Right To Manage
What is Right to Manage?
The Commonhold and Leasehold Reform Act 2002 (the 2002 Act) introduced a new right, the Right to Manage (RTM), that allows leaseholders in a block of flats to form a company (RTM Company), which can take over responsibility for carrying out or arranging the management of their block.
RTM allows Leaseholders to choose the manager for your block of flats, without the need to collectively purchase the freehold. It does also allow you to replace managers (also known as managing agents) with whom you are unhappy.
The RTM is available only to leaseholders of flats in a block. It does not apply to leasehold houses, freehold properties or entire retirement estates. It also does not apply to leaseholders with “shared ownership” unless certain conditions are met.
To qualify for Right to Manage the following factors need to be met:
- A qualifying tenant (also known as a qualifying leaseholder) for the purposes of RTM is someone who holds a lease that was originally granted for more than 21 years, There can only be one qualifying tenant per flat.
- Premises that consist of a self-contained building.
- The building contains two or more flats held by qualifying tenants.
- The total number of flats held by qualifying tenants is not less than two-thirds of the total number of flats in the premises.
- The RTM Company must include at least 50% of the qualifying tenants of flats contained in the premises that the RTM applies to.
How we can help
If you would like to find out more about Right to Manage or you would like help to set up a Right to Manage company then please contact us regarding the service we can provide.