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1 May 2025

What is Right to Manage? A Plain-English Guide | YourBuilding

Right to Manage (RTM) is a legal right that allows leaseholders in England and Wales to take over the management of their building from the freeholder - without needing to prove the freeholder has done anything wrong.

It was introduced by the Commonhold and Leasehold Reform Act 2002 and significantly strengthened by the Leasehold and Freehold Reform Act 2024.

What does RTM actually give you?

When leaseholders exercise their right to manage, they set up an RTM company and take on responsibility for:

  • Arranging building insurance
  • Hiring and overseeing contractors for maintenance and repairs
  • Collecting and managing the service charge
  • Setting the annual budget for the building
  • Enforcing the terms of the leases

You do not need to prove the freeholder is bad at managing the building. RTM is a no-fault right - you simply qualify or you don't.

Who can use Right to Manage?

RTM is available to leaseholders of flats in England and Wales. The key eligibility tests are:

  • The building must be at least two-thirds residential
  • At least 50% of the qualifying leaseholders must participate
  • Leaseholders must hold long leases (originally granted for more than 21 years)

Since the 2024 reforms, a wider range of buildings qualify - including some mixed-use blocks that were previously excluded.

Read our full eligibility guide to check if your building qualifies.

What RTM is not

RTM is not the same as buying your freehold (called collective enfranchisement). With RTM, the freeholder still owns the building - you just take over the management.

It also doesn't affect your individual lease terms or the length of your lease. For that, you'd need to look at lease extension separately.

How does the RTM process work?

The process has clear statutory steps:

  1. Form an RTM company - a special type of company created specifically for this purpose
  2. Invite all qualifying leaseholders to join the RTM company
  3. Serve a claim notice on the freeholder (and any management company)
  4. Wait for the acquisition date - RTM completes automatically one month after the claim notice, unless the freeholder serves a counter-notice

The freeholder can only challenge your claim on technical grounds. They cannot simply refuse to hand over management.

The 2024 reforms: what changed

The Leasehold and Freehold Reform Act 2024 made RTM easier in several ways:

  • 50% threshold reduced in some multi-block developments
  • Cost reform - each party now generally bears their own legal costs, removing the threat of the freeholder's legal bills landing on leaseholders
  • Wider building eligibility - some blocks previously excluded now qualify

Is RTM right for your building?

RTM works best when leaseholders are engaged, organised, and prepared to take on the responsibilities of management. You'll need to source contractors, handle insurance, and manage a budget.

For many buildings, it represents a genuine transformation in how the block is run - lower service charges, better maintenance, and a direct say in decisions affecting your home.

If you're not sure whether your building qualifies, the best starting point is a free eligibility check.

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Check if your building qualifies — free eligibility check