Right To Manage (RTM)

Conditions & Qualifying Criteria

Right to Manage (RTM) allows leasehold tenants to remove the company which manages their block and replace them with a company of their own choosing.

Why claim your Right to Manage?

If you live in a block of flats and do not have a say in who runs that block then you can benefit from the Right to Manage process. The right is available to all flat owners, in all blocks, where they fulfil the following criteria:
  • At least 50% of the flat owners must agree to do this
  • At least 75% of the building must be residential
  • At least two-thirds of the flat owners must have long leases (more than 21 years at the time of issue)
The lessees are not required to prove their current landlord is failing in their duties, or that their current agent is managing the building poorly. The lessees are not required to pay any compensation to the landlord for taking control of the management of the building. All leaseholders in the property are entitled to be part of the RTM company and have equal rights and voting powers.

Advantages of RTM

  • RTM allows leaseholders to gain control of the management of their block from ineffective landlords without requiring any consents or court orders.
  • Allows the replacement of under-performing managers.
  • Helps maintain standards and ensures competitive pricing and continued value for money.
  • Gives the lessees full control over the decision-making process relating to the running of the development.
  • Decision making, such as the placement of the buildings insurance, engagement of contractors and level of service charge will now be firmly in the lessees’ control.

How Long Does This Take?

From the date of incorporation of the RTM Company, the process takes approximately five months, providing you can get at least half of the flat owners to sign up within two weeks of incorporation. If they have signed up before you decide to incorporate, then it takes just over 19 weeks from incorporation. Although there is no guarantee that this will be plain sailing, there is high demand for the formation of RTM Companies and we can help to assist with this process.

What Do You Do Now?

If the details above interest you, we need to talk. This will enable us to outline the services we can offer in supporting you through this process and also running the RTM company on your behalf. If, however, you have been sent this information by your appointed committee you should advise them directly of your support for this.  You may be invited to a meeting where this is formally proposed and your indication of support officially documented. After this, you really do nothing. We handle the process in conjunction with a specialist local solicitor who will form the company and carry out the legal obligations for you. Once the company has acquired the right, you will immediately have a direct say in how the development is managed.

There are a few other things that you need to know before proceeding with the RTM process:

The Freeholder’s Reasonable Legal Costs

If you go through the process, you are liable to pay the reasonable legal costs of the freeholder. These, in our experience, are claimed in most cases so you need to ensure you are prepared for the possibility of additional costs. This is a charge levied by the freeholder’s solicitors and we would have no control over this. If they do levy a charge and you consider it too high then you can apply to the Leasehold Valuation Tribunal for them to determine this. We can do this for you but only if you are successful in the RTM claim and we are appointed as managers for your block.

Leasehold Valuation Tribunal

If a counter notice is received then an application must be made to the First-tier Tribunal (Property Chamber). There is no alternative to this, even though it is highly likely that the freeholder will have no valid reason for the counter notice. Cornerstone will make no charge for applying to the First-Tier Tribunal in most cases.

Further information can also be found here: