Right to Manage: how leaseholders take over a block without buying the freehold

In England and Wales, Right to Manage lets leaseholders take over management of a qualifying block without buying the freehold. RTM companies do not exist in Scotland or Northern Ireland.

What is the Right to Manage, and does it mean buying the freehold?

Right to Manage is the England-and-Wales leasehold right for qualifying flat leaseholders to take over management of their block without buying the freehold, because “the right to manage (“RTM”) was introduced in 2002 to give leaseholders the ability to take over the landlord’s management functions in respect of their building, without having to buy the freehold.” It is not collective enfranchisement and it is not a right to manage freehold property as owner: if the claim succeeds, the freeholder still owns the building, but the RTM company takes over lease management functions such as services, repairs, maintenance, improvements, insurance and management. GOV.UK puts the landlord’s position bluntly: “If they’re successful, you’ll still own the building but they’ll manage it.” If an RTM company later buys the freehold, the RTM status ends, because the 2002 Act says it “ceases to be a RTM company when the conveyance or transfer is executed.”

Which law gives leaseholders the Right to Manage?

Section 71 of the Commonhold and Leasehold Reform Act 2002 creates the Right to Manage framework for England and Wales, and the Act says those rights “are referred to in this Chapter as the right to manage.” The relevant law is Chapter 1 of Part 2 of the 2002 Act, not section 113, and Companies House guidance confirms that “RTM companies and commonhold associations were introduced under the Commonhold and Leasehold Reform Act 2002.” Section 75 is important, but it answers a different question: it defines who is a qualifying tenant for an RTM claim. The practical point is that the right is statutory, so a block either satisfies the Act’s conditions or it does not; the landlord does not grant RTM as a favour, and the leaseholders do not buy the landlord out.

What are the qualifying criteria for Right to Manage?

The current Right to Manage qualifying criteria in England and Wales include the 50% non-residential limit, not the old 25% figure still repeated on some pages, because the 2024 Act changed the 2002 Act so that “for ‘25 per cent.’ substitute ‘50%’.” The premises must contain at least two flats held by qualifying tenants, and the qualifying tenants must hold at least two-thirds of all flats in the premises: the Act requires that “the total number of flats held by such tenants is not less than two-thirds of the total number of flats contained in the premises.” A qualifying tenant is usually a long leaseholder, because section 75 says “a person is the qualifying tenant of a flat if he is tenant of the flat under a long lease,” and a long lease includes one “granted for a term of years certain exceeding 21 years.” On the claim date, RTM company membership must usually cover at least half the flats; if there are only two qualifying tenants, both must be members.

Do you need the freeholder's permission to set up Right to Manage?

You do not need the freeholder’s permission to set up Right to Manage in England and Wales, because LEASE states: “You do not need the landlord’s consent, or to go to court.” The legal mechanism is a statutory claim notice rather than a negotiated consent, and section 79 of the 2002 Act says: “A claim to acquire the right to manage any premises is made by giving notice of the claim.” That does not mean the landlord is irrelevant: the claim notice must be served correctly, the landlord can serve a counter-notice disputing entitlement, and a disputed claim may have to go to the tribunal. The best way to think about freeholder permission to Right to Manage is this: consent is not required, but technical compliance is. A freeholder can obstruct a weak claim by challenging the building, membership, notice or company setup, but cannot veto a valid claim simply because it dislikes losing management control.

How does the Right to Manage process work?

The Right to Manage process starts by forming an RTM company, inviting all qualifying tenants to participate, waiting at least 14 days, serving the claim notice, allowing at least one month for counter-notices, and setting an acquisition date at least three months after that counter-notice deadline. Companies House guidance says “Leaseholders must set up a limited by guarantee company to carry out the management functions,” and the 2002 Act says the claim notice “may not be given unless each person required to be given a notice of invitation to participate has been given such a notice at least 14 days before.” The claim notice must give at least one month for a counter-notice, because it “must specify a date, not earlier than one month after the relevant date” for a response. The intended takeover date must then be “at least three months after” that response deadline. If entitlement is disputed, the RTM company has two months from the last counter-notice to apply to the tribunal.

Do you need a solicitor for Right to Manage?

You do not legally need a solicitor for Right to Manage, but many RTM companies use one because a defective notice, wrong membership count or unsuitable building can defeat the claim. HMCTS tribunal guidance confirms self-representation is possible: “You can speak for yourself or through a representative.” LEASE’s practical advice is more cautious: “It’s best to get professional advice from a solicitor at an early stage if you’re considering the right to manage.” That advice is not the same as a legal requirement. Since 3 March 2025, a major cost risk has also changed: the RTM company is generally no longer liable for the landlord’s claim-notice costs, because section 87A says “An RTM company and a member of an RTM company are not liable for any costs incurred by any other person in consequence of a claim notice given by the company in relation to any premises, except as set out in this section.” Straightforward RTM solicitor quotes still commonly sit in the low thousands.

How much does Right to Manage cost?

Since 3 March 2025, an RTM company is generally not liable for the landlord’s costs of a claim notice, because section 87A now says “An RTM company and a member of an RTM company are not liable for any costs incurred by any other person in consequence of a claim notice given by the company in relation to any premises, except as set out in this section.” That reverses older guidance and market pages that still say leaseholders must reimburse the freeholder’s notice costs. The fixed starting cost is company incorporation: Companies House says online registration “costs £100 and can be paid by debit or credit card.” If the claim is disputed in the English Property Chamber, the current RTM form states: “The application fee is £200,” and the same form says a £300 hearing fee is payable when the hearing date is set. Market prices vary: RTMF quotes “a base charge of £250, plus £140 for each flat in the applicant block, plus VAT” for the full unopposed process.

Who employs the managing agent after Right to Manage?

After Right to Manage is acquired, the RTM company employs or instructs the managing agent, not the freeholder, unless the RTM company chooses to keep the existing arrangement. Section 96 shifts the landlord’s lease management functions to the RTM company: “Management functions which a person who is landlord under a lease of the whole or any part of the premises has under the lease are instead functions of the RTM company.” The RTM company’s articles give it power “to employ any staff and managing or other agents,” but that is a power, not a duty. LEASE states the practical rule clearly: “There is no legal requirement to use a managing agent, but it’s usually best to have one, unless the building is very small and simple to manage.” GOV.UK also says leaseholders can set up an RTM company “to take charge of organising your own block’s services and can appoint your own managing agent.” Ground rent remains a separate landlord income issue; RTM is about management functions.

What are an RTM company director's responsibilities?

An RTM company director is responsible for running the company properly, complying with company law, and making sure the RTM company performs the management functions it has taken over. The Companies Act duty applies directly: “A director of a company must exercise reasonable care, skill and diligence.” Directors must also act in good faith for the company’s members, because section 172 says a director “must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.” Appointing a managing agent does not remove director responsibility; GOV.UK says: “You can hire a professional (for example, an accountant) to help manage your company, but you’re still legally responsible for your company’s records, accounts and performance.” RTM directors also have leasehold-specific duties, including reporting tenant covenant breaches to the landlord within three months of the breach coming to the company’s attention.

How should an RTM company control fob and key access to the block?

An RTM company should control fob and key access through a written issue, audit and cancellation policy, because access control is part of block management once RTM has acquired the landlord’s management functions. Section 96 defines management functions as “functions with respect to services, repairs, maintenance, improvements, insurance and management,” and says the landlord’s lease management functions “are instead functions of the RTM company.” The law does not prescribe a fob policy, so the practical standard is to issue named fobs, record the resident or contractor using each one, time-limit tenant and contractor fobs, cancel missing or duplicated fobs, and keep cleaner and agent access separate from leaseholder access. Fire safety is the hard limit: emergency doors “must not be so locked or fastened that they cannot be easily and immediately opened by any person who may require to use them in an emergency.” A named fob record is personal data because a person can be identified by “an identification number,” so access logs must be handled as data, not gossip.

What goes wrong with Right to Manage?

Right to Manage most often goes wrong through defective notices, weak participation, disputed building eligibility, late handover information, estate facilities outside the block, arrears enforcement, and directors underestimating the workload. The handover problem is structural: after a section 93 notice, the person served usually has 28 days to comply, because the Act says they “must do it within the period of 28 days beginning with the day on which the notice is given.” Multi-block estates are another trap: the Court of Appeal held that “it is not open to an RTM company to acquire the right to manage more than one self-contained building,” and LEASE says that if there is more than one block, RTM “does not include the wider shared estate and its facilities.” The RTM company also cannot use forfeiture as a threat for arrears or lease breaches, because “the RTM company may not exercise any function of re-entry or forfeiture.” Abodient can hold lease records, service-charge documents and compliance expiries against the block, which matters because RTM failures are usually document, deadline and handover failures before they become legal disputes.

Last reviewed September 2026.

Sources

• GOV.UK, Right to Manage guide for landlords — “If they’re successful, you’ll still own the building but they’ll manage it.” Source
• Law Commission, Right to Manage project — “The right to manage (“RTM”) was introduced in 2002 to give leaseholders the ability to take over the landlord’s management functions in respect of their building, without having to buy the freehold.” Source
• Commonhold and Leasehold Reform Act 2002 s.73 — “If the freehold of any premises is conveyed or transferred to a company which is a RTM company in relation to the premises, or any premises containing or contained in the premises, it ceases to be a RTM company when the conveyance or transfer is executed.” Source
• Commonhold and Leasehold Reform Act 2002 s.96 — “Management functions which a person who is landlord under a lease of the whole or any part of the premises has under the lease are instead functions of the RTM company.” Source
• Commonhold and Leasehold Reform Act 2002 s.96 — “Management functions” are functions with respect to services, repairs, maintenance, improvements, insurance and management. Source
• Commonhold and Leasehold Reform Act 2002 s.71 — “The rights are to be acquired and exercised subject to and in accordance with this Chapter and are referred to in this Chapter as the right to manage.” Source
• Companies House, flat management and RTM companies guidance — “RTM companies and commonhold associations were introduced under the Commonhold and Leasehold Reform Act 2002.” Source
• Companies House, flat management and RTM companies guidance — “RTM companies do not exist in Scotland, or Northern Ireland.” Source
• Leasehold and Freehold Reform Act 2024 s.49 — “In Schedule 6 to the Commonhold and Leasehold Reform Act 2002 (“the CLRA 2002”), in paragraph 1(1) (non-residential limit on right to manage claims), for “25 per cent.” substitute “50%”.” Source
• Commonhold and Leasehold Reform Act 2002 s.72 — “the total number of flats held by such tenants is not less than two-thirds of the total number of flats contained in the premises.” Source
• Commonhold and Leasehold Reform Act 2002 s.75 — “Subject as follows, a person is the qualifying tenant of a flat if he is tenant of the flat under a long lease.” Source
• Commonhold and Leasehold Reform Act 2002 s.76 — “it is granted for a term of years certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant, by re-entry or forfeiture or otherwise,” Source
• Commonhold and Leasehold Reform Act 2002 s.79 — “In any other case, the membership of the RTM company must on the relevant date include a number of qualifying tenants of flats contained in the premises which is not less than one-half of the total number of flats so contained.” Source
• LEASE, about the Right to Manage — “You do not need the landlord’s consent, or to go to court.” Source
• Commonhold and Leasehold Reform Act 2002 s.79 — “A claim to acquire the right to manage any premises is made by giving notice of the claim (referred to in this Chapter as a “claim notice”); and in this Chapter the “relevant date”, in relation to any claim to acquire the right to manage, means the date on which notice of the claim is given.” Source
• Companies House, flat management and RTM companies guidance — “Leaseholders must set up a limited by guarantee company to carry out the management functions.” Source
• Commonhold and Leasehold Reform Act 2002 s.79 — “The claim notice may not be given unless each person required to be given a notice of invitation to participate has been given such a notice at least 14 days before.” Source
• Commonhold and Leasehold Reform Act 2002 s.80 — “It must specify a date, not earlier than one month after the relevant date, by which each person who was given the notice under section 79(6) may respond to it by giving a counter-notice under section 84.” Source
• Commonhold and Leasehold Reform Act 2002 s.80 — “It must specify a date, at least three months after that specified under subsection (6), on which the RTM company intends to acquire the right to manage the premises.” Source
• Commonhold and Leasehold Reform Act 2002 s.84 — “An application under subsection (3) must be made not later than the end of the period of two months beginning with the day on which the counter-notice (or, where more than one, the last of the counter-notices) was given.” Source
• HMCTS, Property Tribunal guidance T541 — “You can speak for yourself or through a representative.” Source
• LEASE, about the Right to Manage — “It’s best to get professional advice from a solicitor at an early stage if you’re considering the right to manage.” Source
• Commonhold and Leasehold Reform Act 2002 s.87A — “An RTM company and a member of an RTM company are not liable for any costs incurred by any other person in consequence of a claim notice given by the company in relation to any premises, except as set out in this section.” Source
• GOV.UK, register your company — “It costs £100 and can be paid by debit or credit card.” Source
• HMCTS Leasehold 8 RTM form — “The application fee is £200” Source
• RTMF Services, RTM costs — “Our fee for taking a block through the full Right to Manage process is a base charge of £250, plus £140 for each flat in the applicant block, plus VAT.” Source
• RTM Companies Model Articles 2009, Schedule — “to employ any staff and managing or other agents;” Source
• LEASE, planning for Right to Manage — “There is no legal requirement to use a managing agent, but it’s usually best to have one, unless the building is very small and simple to manage.” Source
• GOV.UK, How to lease — “You and fellow leaseholders could set up a Right to Manage Company to take charge of organising your own block’s services and can appoint your own managing agent.” Source
• Companies Act 2006 s.174 — “A director of a company must exercise reasonable care, skill and diligence.” Source
• Companies Act 2006 s.172 — “A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to—” Source
• GOV.UK, being a company director — “You can hire a professional (for example, an accountant) to help manage your company, but you’re still legally responsible for your company’s records, accounts and performance.” Source
• Commonhold and Leasehold Reform Act 2002 s.101 — “The report must be made before the end of the period of three months beginning with the day on which the failure to comply comes to the attention of the RTM company.” Source
• Regulatory Reform (Fire Safety) Order 2005 art.14 — “emergency doors must not be so locked or fastened that they cannot be easily and immediately opened by any person who may require to use them in an emergency;” Source
• ICO, what is personal data — “an identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person” Source
• Commonhold and Leasehold Reform Act 2002 s.93 — “But, subject to that, a person who is required by a notice to do anything under this section must do it within the period of 28 days beginning with the day on which the notice is given.” Source
• Triplerose Ltd v Ninety Broomfield Road RTM Co Ltd [2015] EWCA Civ 282 — “Accordingly in my view it is not open to an RTM company to acquire the right to manage more than one self-contained building or part of a building and the Upper Tribunal was wrong to reach the decision which it did.” Source
• LEASE, taking over management — “If there is more than 1 block of flats in a development, the right to manage for a block does not include the wider shared estate and its facilities.” Source
• Commonhold and Leasehold Reform Act 2002 s.100 — “But the RTM company may not exercise any function of re-entry or forfeiture.” Source