Right to Manage (RTM) was created by the Commonhold and Leasehold Reform Act 2002. Its purpose is simple: to give leaseholders a no-fault route to take control of how their building is run. You do not have to show the landlord has done anything wrong. You do not have to buy the freehold. You simply meet the qualifying criteria, follow the procedure, and management transfers to a company the leaseholders control.
Does your building qualify?
RTM is aimed at leasehold blocks of flats. The main qualifying conditions are:
- The building contains at least two flats.
- At least two-thirds of the flats are let to 'qualifying tenants', broadly, leaseholders on long leases (originally granted for more than 21 years).
- The building is mostly residential. Following the Leasehold and Freehold Reform Act 2024, up to 50 percent of the building can be non-residential (such as shops) and still qualify, up from the previous 25 percent limit. This change came into force on 3 March 2025 and brings many mixed-use buildings into scope for the first time.
- Enough leaseholders take part. At least half of the flats in the building must join the RTM company.
The RTM process, step by step
Set up an RTM company
Form a private company limited by guarantee, set up specifically to be the RTM company for your building. Its members are the participating leaseholders.
Invite everyone to participate
Serve a 'notice of invitation to participate' on every qualifying leaseholder who is not yet a member, giving them the chance to join. This step is a legal requirement, not a courtesy.
Serve the claim notice on the landlord
Once enough leaseholders are members, serve a formal claim notice on the landlord (and any party with management duties). It sets the date by which they can respond and the date management will transfer.
Deal with any counter-notice
The landlord has a fixed period to serve a counter-notice, but only on narrow technical grounds, for example that the building does not qualify. They cannot object simply because they would rather keep managing it.
Take over on the acquisition date
On the agreed date, management transfers to your RTM company. You take on the service charges, maintenance, insurance and compliance for the building.
What changed in March 2025, and why it matters
Historically, one of the biggest deterrents to RTM was cost. Leaseholders bringing a claim usually had to pay the landlord's legal and professional costs of dealing with it, which could run into thousands of pounds and made small buildings hesitate.
That changed on 3 March 2025. Under reforms in the Leasehold and Freehold Reform Act 2024, the starting position is now that an RTM company and its members are not liable for the landlord's costs of a straightforward, non-contentious claim. The landlord can only recover costs in limited circumstances, such as where a tribunal specifically orders it. For small blocks, this removes the single biggest financial barrier to taking control.
What RTM does and does not give you
It helps to be clear about the boundaries.
| RTM gives you | RTM does not give you |
|---|---|
| Control of day-to-day management | Ownership of the freehold (that is enfranchisement, a separate process) |
| Control of the service charge and budget | The right to extend your own lease automatically |
| Responsibility for insurance and maintenance | Freedom from the lease terms, which still apply |
| The ability to choose your own agent, or none | Any change to ground rent owed to the landlord |
Common mistakes that derail a claim
- Skipping or botching the notice of invitation to participate, which can invalidate the whole claim
- Getting the qualifying numbers wrong, especially the two-thirds and one-half tests
- Errors in the claim notice, such as wrong dates or missing details
- Not having the RTM company properly set up before serving notices
- Missing the landlord's counter-notice window for responding
None of these are hard to avoid, but they are unforgiving. RTM rewards getting the paperwork right the first time. Our Exit Kit provides the notices, the checklists and the timeline so a small block can run a claim with confidence.
Not sure whether RTM or a simpler switch applies to you? The two-minute switch check tells you which route fits your building.
Frequently asked questions
Do we need the landlord's permission for Right to Manage?+
No. That is the defining feature of RTM. Provided your building qualifies and you follow the statutory procedure correctly, the landlord cannot refuse. They can only serve a counter-notice on narrow technical grounds, such as that the building does not meet the qualifying criteria.
How long does an RTM claim take?+
Typically around four to six months from serving the claim notice to the acquisition date. The legislation builds in fixed waiting periods to give the landlord time to respond, so the timeline is largely set by statute rather than by how fast you work.
Will we have to pay the landlord's legal costs?+
For a straightforward claim, generally no longer. Since 3 March 2025, the Leasehold and Freehold Reform Act 2024 reforms mean an RTM company and its members are not normally liable for the landlord's process costs. Costs can only be recovered in limited situations, such as where a tribunal orders them.
Sources and further reading
- Commonhold and Leasehold Reform Act 2002 (Right to Manage)
- Leasehold and Freehold Reform Act 2024 (Commencement No. 3) Regulations 2025
- GOV.UK: Right to Manage and leasehold
- LEASE: Right to Manage advice
This guide is general information, not legal advice. Good Flats is not a law firm or a regulated managing agent. Information is verified against UK legislation as of June 2026; some announced reforms are not yet fully in force. Always check your own lease and take professional advice on anything significant.