Leaseholders Right to Manage

Under the Commonhold and Leasehold Reform Act 2002, flat leaseholders have a right to take over management of the building from their landlord. This is done by setting up a Right to Manage (RTM) company.

The RTM company takes responsibility for the management of the building, or they can pay a managing agent to carry this out for them. This includes things like:

• collecting and managing the service charge
• upkeep of the communal areas
• upkeep of the structure of the building
• dealing with complaints about the building from other leaseholders

You don't need to prove that there has been any mismanagement of the building by your landlord, but there is strict criteria that you have to meet, and a set process that must be followed.

To qualify for Right to Manage:

• the building must be made up of flats (houses don’t qualify)
• at least two-thirds of the flats in the building must be leasehold - with leases that were for more than 21 years when they were granted
• at least 75% of the building must be residential - for example, if there’s a shop in the building, it can’t take up more than 25% of the total floor area
• any number of owners can set up an RTM company - but at least half of the flats in the building must be members of the company before it can take over management
• the building must contain more than four flats and must have been originally a purpose-built block for residential use

If you want to find out more about the Right to Manage, there is guidance on the Leasehold Advisory Service website.

If you would like to set up an RTM company for your building, please contact our Legal Services team at Legal.Services@greensquareaccord.co.uk