Categories: Right to Manage

Right to Manage

Are you a leaseholder and thinking about managing your own building? Do you have a freeholder that you feel is charging you more than what you believe the building actually costs?

It might not be necessarily a fault of your landlord and Management Company that you wish to manage it yourselves.

There is a criterion that first needs to be met. That a minimum of half the leaseholders in the block need to agree to a legal right to manage process. This comes from the Common and Leasehold Reform Act of 2002 which give you the legal right to choose your own Management Company.

Right to Manage will seem complicated to most people but it does have a stringent statutory procedure that needs to be followed. If the legal requirements aren’t met this can leave the door open to technical objections from the landlord. It can even stop the process entirely.

How Right to manage works

To be eligible for a Right to Manage (often known as RTM) there are some criteria to meet. These are:

  • Right to Manage only applies to leaseholders and owners of flats, not houses or bungalows.
  • It must be a detached building or part of a building that can be served independently.
  • There must be two or more flats held by qualifying tenants and at least two-thirds of the flats must be leased to qualifying tenants.
  • If commercial premises make up more than 25% of the overall floor area then it would not qualify. This is also the case if the local authority owns the property and if the landlord occupies one of the flats.
  • A leaseholder must have a lease period exceeding 21 years to be a qualifying tenant.


Do you need freeholders insurance on a like for like basis? Do you want to purchase your freehold to try and reduce your costs through your insurance? Don’t hesitate to ask for a like for like quote. Your landlord could be charging a substantial amount more than the market rate so why not question what your paying for


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