The Right to Manage

Right to Manage (RTM) support.

Under the Commonhold and Leasehold Reform Act 2002, the leaseholders of a block of flats have the right to take over the management of their building from their landlord. This is called the “Right to Manage”. This can be more affordable than buying the freehold under the right to Collective Enfranchisement, as the leaseholders will not have to pay a purchase price.

Acquiring the Right to Manage can be complex. It’s a specialist discipline that requires expert knowledge and experience, to avoid the pitfalls that could result in the leaseholders failing to acquire the Right to Manage, or the landlord being unable to successfully resist the leaseholders acquiring the right.

Morr & Co’s Leasehold Enfranchisement lawyers are experts at guiding clients through the process, from the initial advice through to proceedings at the  First-Tier Tribunal.

Understanding Right to Manage (RTM)

Preliminary Steps

The first step is for the leaseholders to incorporate a special “RTM Company” which will manage the block on behalf of the tenants. Once the RTM Company is incorporated, it will need to serve a notice on all of the leaseholders in the block who are not already members of the RTM Company, inviting them to participate in the claim to acquire the Right to Manage.

The Process

Once the preliminary steps  are complete, and if the RTM Company has the requisite number of the eligible leaseholders in the block as members, the RTM Company may serve a Notice of Claim on the landlord.

The landlord must serve a counter-notice within one month of receiving the Notice of Claim, indicating whether or not they accept that the leaseholders have acquired the Right to Manage. If the landlord disputes that the Right to Manage has been acquired, the RTM company may need to apply to the First-Tier Tribunal to determine whether the Right to Manage has been acquired.

Our lawyers can advise both tenants and landlord on the process and assist with the process from start to finish.