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Residential Leasehold

Understanding your Right to Manage (RTM)

– and taking back control

Do you live in a leasehold flat? Then you’ll know just how much influence your managing agent or freeholder has over your day-to-day living environment - from service charges and maintenance to repairs and long-term planning.

When management is poor, unresponsive or overly expensive, it can feel like you have little say in how your own home is run.

But you do.

The Right to Manage (RTM) is a legal route that allows leaseholders to take over the management of their building, without needing to prove fault or purchase the freehold.

What is Right to Manage?

RTM is a statutory right that enables qualifying leaseholders to form a company and assume responsibility for managing their building.

In practical terms, this means taking control of how service charges are spent, how repairs and maintenance are handled, who insures the building, how communal areas are maintained and even which managing agents (if any) are appointed.

And this is very important - RTM allows leaseholders to take control without needing the freeholder’s consent - and without paying compensation.

When might RTM be the right step?

Leaseholders often begin exploring RTM when frustrations build over time. This may include excessive or unclear service charges, delays in maintenance, poor communication from managing agents or a general lack of transparency around decision-making.

In many cases, it’s not about conflict, it’s about wanting visibility, accountability and a meaningful say in how the building is run.

RTM shifts management control away from the freeholder or their appointed agent and places it in the hands of the people who live there.

Why RTM Exists: Freehold vs Leasehold

Understanding RTM starts with understanding the difference between freehold and leasehold ownership.

  1. If you own a freehold property, you own both the building and the land it sits on. You are responsible for its upkeep - but you also control how it is managed.
  2. Leaseholders, however, own the right to occupy their home for a set number of years, not the building itself. The structure, land and communal areas remain under the ownership of the freeholder.
  3. This means leaseholders contribute financially to maintenance, insurance, cleaning and major works - but decisions about how these are delivered often sit elsewhere.
  4. RTM exists to rebalance that relationship. It allows leaseholders to manage the building themselves without needing to buy it outright.

Freeholders don’t need RTM because they already hold ownership and control.

An important question: does your building qualify?

Many residential buildings are eligible for RTM, provided they are self-contained, contain at least two flats and meet participation requirements among leaseholders.

There are also limits on commercial space within the building, which typically must not exceed 25%.

What does the process involve?

  • Exercising RTM involves forming a dedicated RTM company, run by participating leaseholders. This company becomes the legal body responsible for managing the building once the process is complete.
  • All qualifying leaseholders must be formally invited to join, even if they choose not to take part.
  • Once established, the RTM company serves a formal Notice of Claim on the freeholder and any existing managing agent, setting out its intention to take over management and proposing a handover date.
  • The freeholder may accept the claim or challenge it - often on eligibility or procedural grounds. If disputes arise, they can be referred to a tribunal.
  • Assuming the claim succeeds, a transition period follows. During this time, management information, contracts and financial arrangements are handed over, allowing leaseholders to either self-manage or appoint a new managing agent.

While the process is designed to be accessible, it is also highly technical - and errors can delay or complicate the transition.

What changes - and what doesn’t?

RTM gives leaseholders control over management, but not ownership.

The freeholder still owns the building. However, decisions about how it is maintained, insured and operated move into the hands of leaseholders.

Why legal guidance matters

Right To Manage can be empowering but it is also very procedural.

Serving incorrect notices or missing key steps can give freeholders grounds to challenge the claim.

Legal support helps ensure eligibility is confirmed, notices are valid and any disputes are managed effectively.

How we can help

At Coles Miller, we support leaseholders through every stage of the RTM process, from early advice to navigating challenges along the way.

Taking back control of your building is possible, and RTM may be the first step toward better management, transparency and peace of mind.

The Coles Miller residential leasehold department

Our team combines technical property law expertise with practical experience to help leaseholders make informed decisions in a the rapidly changing world of property.

If you are a leaseholder with questions about ground rent, selling your property, remortgaging, extending your lease or Right to Manage (RTM), Coles Miller can help you protect your interests and navigate the legal complexities with confidence.

Get Expert Legal Advice

If you are a leaseholder, and seek professional advice on your properties, please contact Nick Leedham, Partner and Head of Residential Leasehold at Coles Miller Solicitors.

 

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