Question 1

What is the Right to Manage?

Accepted Answer

The Right to Manage (RTM) is a statutory right under the Commonhold and Leasehold Reform Act 2002 that allows qualifying leaseholders to take over the management of their building from the landlord/freeholder — without having to prove any fault on the part of the landlord, and without having to pay compensation to the freeholder. Through RTM, leaseholders gain control over key management decisions: appointing the managing agent (or self-managing), awarding service contracts, carrying out major works, setting and collecting service charges. RTM does not transfer ownership of the freehold — it only transfers management functions. RTM is available in England and Wales; Scotland has a similar but distinct "Right to Manage" under different legislation.

Question 2

Who qualifies for Right to Manage?

Accepted Answer

To exercise RTM, the building must qualify and a sufficient number of leaseholders must participate: Building qualification: the building must be a self-contained building or part of a building with at least two flats, at least two-thirds of the flats must be held on long leases (originally granted for more than 21 years), and no more than 25% of the floor area can be non-residential (e.g. commercial premises). Leaseholder participation: at least 50% of the qualifying leaseholders in the building must join the RTM Company. So if there are 20 qualifying flats, at least 10 leaseholders must participate. There is no requirement to own a minimum percentage of the building or to meet a minimum lease length remaining — any long leaseholder can join. Properties excepted from RTM: converted houses where the resident landlord lives there, buildings with no more than 25% residential use, and some other narrow exceptions.

Question 3

How do you set up an RTM Company?

Accepted Answer

An RTM Company is a specific type of private limited company incorporated solely to exercise the Right to Manage. Steps to set up: (1) Incorporate the RTM Company at Companies House using the model articles specifically designed for RTM companies (available from government guidance). The company name must end in "RTM Company Limited" or "RTM Company Ltd." (2) All participating leaseholders become members of the RTM Company. (3) The RTM Company serves a Claim Notice on the landlord (and any existing management company) giving at least one month's notice. (4) The landlord can serve a Counter-notice disputing the claim within one month. (5) If the landlord does not dispute or the dispute is resolved at the First-tier Tribunal in favour of the RTM Company, the RTM Company acquires the right to manage on the Acquisition Date (at least three months after the Claim Notice). The landlord has no right to challenge the RTM itself — only whether the qualifying conditions are met.

Question 4

What are the costs of pursuing RTM?

Accepted Answer

The costs of an RTM claim are relatively modest compared to leasehold enfranchisement: Solicitor fees: £1,500–£4,000 for a straightforward RTM claim. More complex cases (disputed claims, large buildings) can cost more. Companies House incorporation: £12 (online). Landlord's reasonable costs: the leaseholders do not have to pay the landlord's legal costs unless the claim fails. If the RTM claim is successful, the landlord can only charge its own reasonable costs if these are recoverable under the service charge provisions in the lease. The Leasehold and Freehold Reform Act 2024 has strengthened protections against landlords recovering disproportionate costs from leaseholders in connection with RTM claims.

Question 5

What management functions does RTM give leaseholders?

Accepted Answer

RTM gives the RTM Company the right (and obligation) to carry out all management functions under the lease, including: appointing and dismissing managing agents, entering into service contracts (cleaning, maintenance, insurance, utilities), carrying out repairs and major works (subject to Section 20 consultation), collecting and accounting for service charges, enforcing lease covenants against other leaseholders, and granting approvals and consents under the lease (subletting, alterations). What RTM does NOT give: ownership of the freehold, the right to receive ground rent (this stays with the freeholder), control over decisions that are solely the landlord's prerogative under the lease (e.g. forfeiture proceedings). The RTM Company becomes responsible for all management obligations from the Acquisition Date — including any existing contracts and ongoing maintenance obligations.

Question 6

Can the landlord oppose an RTM claim?

Accepted Answer

The landlord can serve a Counter-notice disputing the RTM claim on the grounds that the qualifying conditions are not met (e.g. the building does not qualify, fewer than 50% of qualifying leaseholders have joined, or the Claim Notice is defective). The landlord cannot oppose RTM on the grounds that they are a good manager, that RTM would be disruptive, or for any subjective reason. If the landlord serves a valid Counter-notice, the RTM Company has two months to apply to the First-tier Tribunal (Property Chamber) for a determination. The tribunal considers only whether the qualifying conditions are met — not the merits of management. If the RTM Company does not apply to the tribunal within two months, the RTM claim lapses and the RTM Company must wait 12 months before making a new claim.

Question 7

What changed under the Leasehold and Freehold Reform Act 2024?

Accepted Answer

The Leasehold and Freehold Reform Act 2024 (LAFRA 2024) includes several improvements to the RTM regime: Easier qualifying: the 50% qualifying leaseholder participation threshold remains, but LAFRA removes the restriction that previously excluded some converted buildings from RTM. Costs protection: LAFRA strengthens protections for leaseholders against having to pay disproportionate landlord costs in RTM proceedings. Estate RTM: the Act introduces provisions for "estate RTM" allowing residents of housing estates to exercise RTM over communal areas and shared facilities (not yet fully in force as of June 2026). The broader package of LAFRA reforms (ground rent abolition, lease extension changes) is being implemented in phases through 2025-2026.

Question 8

How can IgeraFincas help RTM Companies manage their building?

Accepted Answer

IgeraFincas is designed for exactly the scenario an RTM Company faces — taking over management of a building without a professional managing agent: (1) Lease knowledge base: the RTM Company uploads all leases and the building's key documents. The system answers questions about lease provisions (service charge obligations, permitted alterations, subletting rules) for both the directors and leaseholders. (2) Owner communication: leaseholders ask questions via web widget or WhatsApp and receive instant answers based on the building's specific documents — no need for RTM directors to answer every query individually. (3) Section 20 compliance: the system tracks Section 20 consultation requirements and deadlines for planned works. (4) Service charge transparency: leaseholders can query their service charge history and the basis for charges. IgeraFincas is available from £99/month — well within reach for most RTM Companies managing self-service.

Right to Manage UK 2026: Leaseholder Guide

Frequently asked questions