Right to Manage (RTM) / RTM Companies

Why consider the Right to Manage (RTM)?

Many leaseholders feel powerless over how their building is run: service charges skyrocket, maintenance is deferred, managing agents are unresponsive, and accountability seems non-existent. The Right to Manage (RTM) is a statutory tool that allows leaseholders to take control of building management, without having to buy the freehold.

Key benefits include:

• Transparent control over services and costs, you and your neighbours decide how money is spent.
  
• Choice of managing agent (or self-management), you are no longer stuck with the landlord’s choice of agent.
  
• No need to prove landlord wrongdoing, RTM is a “no-fault” right under statute.
  
• Enhanced accountability and trust, when leaseholders run things, there’s incentive to be cost efficient and responsive.
  
• More buildings now qualify under recent reforms (e.g. mixed residential/commercial).
  

However, RTM is not without its challenges technical process, documentation, objections from the freeholder and making the wrong procedural move can delay or block your claim. That’s why specialist legal guidance is essential.

What is the Right to Manage?

The Right to Manage is a statutory right given by the Commonhold and Leasehold Reform Act 2002. It allows qualifying leaseholders (usually of flats) to form a company (an RTM company) and use that company to take over management responsibilities from the landlord. 

Under RTM, the RTM company takes on obligations such as:

• maintenance and repair of common parts (corridors, roofs, exterior walls, communal facilities)
• insurance (for the building and communal parts)
• service charge collection and administration – The RTM company is responsible for setting and demanding the service charges, ensuring they are transparent and strictly in line with management needs.
• contract oversight, tendering, appointment of contractors
• health & safety compliance, building upkeep
  

The freeholder retains ownership of the land and the structural title, but management control shifts to the leaseholders. 

Because RTM is “no-fault”, you do not need to prove mismanagement or wrongdoing by the landlord, eligibility and procedure matter much more. 

What Recent Reforms Affect RTM?

The Leasehold and Freehold Reform Act 2024 introduces changes intended to make RTM more accessible and fairer for leaseholders. Some key updates are already in force (as of March 2025) or are being phased in. 

Because the reforms are still rolling out, each case must be judged on whether the old rules, new rules, or a hybrid approach applies. We will assess your lease, building, and timelines to choose the best path.

Who Qualifies for RTM?

RTM is only available for residential leaseholders of flats (not houses). And not all blocks qualify. Below are typical eligibility requirements (subject to reform changes):

Building / Block Criteria

• It must be a self-contained block (or capable of being managed separately).
• At least 50% of flats’ leaseholders must join the RTM company (or agree to take part). 
• A certain proportion (often two-thirds) of flats must be held by qualifying leaseholders (i.e., long leases). Please note, ongoing reforms may adjust these threshold requirements. We will confirm the current criteria that apply to your building before you commit to RTM action
• The building must meet the residential use test: no more than a permitted proportion of non-residential space (new cap up to 50%). 
• The building must not be one of certain excluded types (e.g. some charity trust conversions, blocks where RTM has already been exercised recently).

Leaseholder Criteria

• You must be a qualifying leaseholder (usually a long lease, e.g. more than 21 years originally granted) 
• You do not need to prove landlord mismanagement or fault. 
• You must participate in the RTM company as a member.
• Ownership duration should be checked (some regimes previously required two years, but reforms may remove this). 

Because every building and lease is different, we always begin with a detailed qualification assessment to confirm whether RTM is feasible in your case.

Our Right to Manage Service: Step by Step

Here is how Jonathan Lea Network supports you through the RTM process, ensuring legal precision, strategic advice, and cost control.

1. Initial Consultation & Eligibility Audit

• We review your lease, title, and building documents
• We check building layout, non-residential floorspace, and prior rights
• We estimate the likely cost, risk, and timeline
• We advise whether to proceed now or wait for reforms
  

2. Forming the RTM Company

• We help leaseholders form a valid RTM company (limited by guarantee), with compliant articles of association
• The RTM company must always meet Companies House requirements, including appointing directors, maintaining statutory registers, and filing annual confirmation statements and accounts. We guide you through every compliance obligation.
• We draft a Participation Notice / Invitation to Participate to invite non-joining leaseholders to become members
• We ensure all formalities (notice windows, service requirements) are observed
  

3. Serving the Notice of Claim (Section 79 / Statutory Claim)

• We draft and serve the formal Notice of Claim to the freeholder and relevant third parties (e.g. managing agent, intermediate landlords)
• The Claim Notice must specify a proposed acquisition date, response deadline, and comply with statutory format
• We ensure that service is valid (correct addresses, proof of delivery)
  

4. Handling Counter-Notices and Objections

• The freeholder may issue a Counter-Notice, accepting or disputing the RTM rights
• Objections must be on statutory grounds (e.g. eligibility, procedural defects)
• We evaluate any objections, respond with legal arguments, and correct any procedural issues if possible
• Avoiding technical missteps at this stage is crucial, procedural errors can invalidate your claim. Our team conducts a forensic check of all documentation and statutory procedures before formal Tribunal submission
• If objection persists, we prepare to apply to the First-tier Tribunal (Property Chamber) for a determination
  

5. Tribunal Application (if needed)

• We prepare your evidence (leases, notices, building plan, membership lists)
• We argue your entitlement, respond to freeholder defences, and press for a favourable determination
• We manage the hearing, legal advocacy, and liaise with expert witnesses if required
  

6. Acquisition, Handover & Transition

• Once entitlement is confirmed, the RTM company formally acquires the management rights on the acquisition date
• We work with the outgoing landlord/management company to secure transfer of records, funds, contracts, warranties
• By law, the freeholder must cooperate with the RTM company’s requests for records and information. If necessary, we apply to the Tribunal to compel compliance and secure a full and smooth handover of management
• We assist the RTM company in appointing a managing agent (or managing directly), preparing budgets, insurance, maintenance programmes, and governance documents
• We help source reputable managing agents, assist with tenders and contracts, and provide advice on what professional accreditations to look for

7. Ongoing Legal Support & Governance Advice

• We advise on lease compliance, dispute resolution, and company law matters
• We assist the RTM company with contracts, insurance, remedial works, and handling leaseholder queries
• We monitor legal reforms, changes in Tribunal practice, and help the company stay compliant and efficient
  

At each step, we provide cost forecasts, risk assessment, and transparent billing to ensure you know exactly what you are paying for.

Risks, Challenges & How We Mitigate Them

RTM is powerful — but fraught with procedural pitfalls, landlord resistance, and complexity. Here are common challenges and how we mitigate them:

Because errors at any stage may kill the claim or delay acquisition, expert legal supervision is critical.

Why Choose Jonathan Lea Network for Your RTM Work?

Leasehold & Management Expertise

We are not general property lawyers, we specialise in leasehold law, RTM, enfranchisement, and related litigation. You benefit from focussed, up-to-date expertise.

Strategic Approach in a Changing Landscape

As RTM reforms roll out, we shape your claim to fit current law, upcoming rules, or hybrid regimes. You will not be blindsided by legislative changes.

Transparent, Client-Centred Fees

We use stage-based billing, capped fees where possible, and clear forecasts. You will never be surprised by hidden costs.

Hands-On Process Management

We manage the procedural steps, notices, compliance, correspondence, and Tribunal representation. You focus on decision-making, not legal bureaucracy.

Support Beyond Acquisition

We don’t just help you acquire RTM, we advise the company in governance, contracts, insurance, maintenance strategy, and legal compliance for years to come.

Common Leaseholder Concerns & How We Address Them

Take Control with Expert Backing

If you’re frustrated by poor management, rising service costs, or lack of transparency, RTM can be a real route to control and accountability. But the stakes are high, a single procedural error can derail your claim.

Contact Jonathan Lea Network today for a free initial RTM eligibility review. We will:

1. Examine your lease, building layout, and eligibility under modern and reformed rules
   
2. Outline the risks, costs, timeline and strategic options
   
3. Guide you through each step, from company formation to acquiring control and beyond
   

Don’t wait until costs mount or quality deteriorates further. With the right legal partner, leaseholders can take charge, and run their building in the way it always should have been run.

If you have any questions or would like further advice on the above, then please call us on 01444 708 640 or email us at wewillhelp@jonathanlea.net 

Frequently Asked Questions

Learn More: How Lease Extensions Work and Why They Matter

For a clearer understanding of leaseholder rights and the practical steps involved, watch our video featuring Kent Reynolds, Senior Solicitor at Jonathan Lea Network.

Kent explains the lease extension process, common pitfalls, and how expert advice can protect your property’s long-term value. These same principles underpin our wider leasehold services, including enfranchisement, RTM, and deeds of variation.

Photo by Henry Williams on Unsplash