How leaseholders in England take back control of their building
The Right to Manage is a statutory right that lets you replace your managing agent — without going to court, without buying the freehold, and without proving your current agent has done anything wrong. This page explains how it works, step by step.
Check your eligibilityWhat is the Right to Manage?
The Right to Manage (RTM) is a legal right introduced by the Commonhold and Leasehold Reform Act 2002. It gives leaseholders in qualifying buildings the power to take over responsibility for managing their block — appointing their own managing agent, negotiating their own service contracts and overseeing their own service charge — without needing the freeholder's agreement and without having to prove mismanagement.
RTM does not change who owns the building. The freeholder still owns the freehold. What changes is who manages it day-to-day: once the claim succeeds, that responsibility transfers to an RTM company — a limited company formed and controlled by the leaseholders themselves.
It is different from buying the freehold (collective enfranchisement), which is more expensive and legally complex. RTM is specifically designed to be accessible: a statutory process with defined timescales, set notice periods, and no requirement for the freeholder to agree — as long as you follow the procedure correctly.
Do you qualify? The three criteria explained plainly
Most leaseholders in England are surprised to learn how broad the eligibility rules are. There are three things to check: the building, the leases and the leaseholders. You do not need all residents on board — just enough.
The building must qualify
The building must be a self-contained block (or part of a building that is structurally detachable) containing at least two flats. Broadly, this covers most residential blocks in England. Purpose-built commercial premises, converted houses where the freeholder lives in one flat, and certain buildings with substantial non-residential use are excluded — but these exceptions are narrower than most people assume.
The leases must be long enough
Each participating leaseholder must hold a long lease — one originally granted for more than 21 years. This covers virtually all standard flat leases in England, including those that have run down considerably. A lease with 30 years remaining on a 99-year term still qualifies; what matters is the original term, not what is left.
You need enough qualifying leaseholders
At least half of the total number of flats in the building must be held by qualifying leaseholders, and those leaseholders — or at least half of them — must join the RTM company and support the claim. You do not need unanimous support. In a ten-flat building you need five participating leaseholders; in a twenty-flat building you need ten. Company leaseholders and some other structures are excluded from counting.
Not sure if your building qualifies? Run a free eligibility check →
The statutory steps from RTM company formation to management transfer
RTM follows a defined legal process. Each step has a statutory purpose, and some have mandatory waiting periods built in by law. Here is what the journey looks like in practice.
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1
Form the RTM company
Before anything else, you incorporate a private limited company at Companies House. Its articles of association must conform to the statutory model prescribed for RTM companies — standard commercial articles will not do. The company is the legal vehicle for the claim: it serves the notices, it acquires the RTM, and it becomes responsible for management once the claim succeeds.
Typical time: 1–2 weeks -
2
Invite all qualifying leaseholders to join
Once the company is formed, you must give all qualifying leaseholders in the building a formal notice inviting them to become members. This is a statutory requirement, not just good practice — skipping it can invalidate the claim. You need to give at least 14 days for leaseholders to respond before proceeding.
Statutory minimum: 14 days -
3
Confirm sufficient participation
Once the invitation period has passed, check that you have enough participating members to meet the threshold (at least half of all qualifying flats). If you do, you can proceed to the notice of claim. If not, you may need to pause and continue building support — there is no shortcut to the participation requirement.
Typical time: 1–4 weeks -
4
Serve the Claim Notice on the freeholder
The RTM company serves a formal Claim Notice on the freeholder (and any other relevant parties, such as a management company named in the leases). The notice must contain specific statutory information, including the proposed acquisition date — which must be at least four months after the notice is served. This is the document that starts the clock.
Typical time: 1 week to prepare -
5
Freeholder has one month to respond
The freeholder has one month from receipt of the Claim Notice to serve a Counter-Notice. If they accept the claim, the process continues to the acquisition date. If they serve a Counter-Notice alleging that the RTM company is not entitled to acquire the RTM, they must state the grounds — and the RTM company can then apply to the First-tier Tribunal to determine whether the claim is valid. If the freeholder does not respond at all, the claim succeeds automatically.
Statutory window: 1 month -
6
Appoint your managing agent and prepare for transfer
With the acquisition date confirmed, the RTM company needs to be ready to manage from day one. This means appointing a managing agent (or deciding to self-manage), reviewing existing service contracts, arranging buildings insurance, and obtaining service charge accounts and funds held on behalf of leaseholders. The outgoing freeholder/agent is legally required to cooperate with this transfer.
Typical time: runs during 4-month notice period -
7
Acquisition date: management transfers to the RTM company
On the acquisition date, responsibility for managing the building passes to the RTM company. From this point, the RTM company sets the service charge, appoints contractors, oversees maintenance, and is legally responsible for carrying out the management functions set out in the leases. This is day one of your RTM company's life as the managing entity.
The start of ongoing management
A realistic timeline for your RTM claim
The statutory minimum from Claim Notice to acquisition is four months. In practice, the full process from first conversation to management transfer typically takes six to twelve months. Here is how that time breaks down.
Preparation & company formation
Checking eligibility, building resident support, incorporating the RTM company with correct articles, and inviting leaseholders to join.
Notice of Claim period
Serving the Claim Notice, waiting for the freeholder's response, and — if a Counter-Notice is served — applying to the tribunal if necessary.
Management preparation
Selecting a managing agent or planning self-management, reviewing contracts, arranging insurance and preparing for the handover of accounts.
Acquisition & handover
The formal transfer of management responsibility on acquisition day, including receipt of service charge funds and existing contracts from the outgoing agent.
Overall: typically 6–12 months end to end. A straightforward claim in a building with good leaseholder engagement can complete closer to six months. Contested claims or delays in the freeholder's response may extend this, particularly if a tribunal application is required.
What changes — and what stays the same
RTM is often misunderstood. Knowing exactly what does and does not change helps you make a clear-eyed decision before you start.
What changes after RTM succeeds
- The RTM company appoints and dismisses the managing agent — the freeholder no longer does this
- The RTM company sets and controls the service charge budget
- Leaseholders — through the company — approve major works and issue Section 20 notices
- The RTM company negotiates service contracts: cleaning, maintenance, insurance
- Repair decisions are made by the RTM company directors, not the freeholder
- Surplus service charge funds are held by the RTM company, not the freeholder's agent
What stays the same
- The freeholder still owns the building and the freehold title
- Lease obligations — yours and theirs — remain unchanged
- The freeholder retains the right to collect ground rent (if applicable under the lease)
- The freeholder can still enforce lease covenants against leaseholders
- Leaseholders still hold long leases; RTM does not extend them
- The freeholder's consent may still be required for subletting, alterations and similar lease matters
Common obstacles — and how to avoid them
RTM is not complicated, but it is procedurally precise. The most common reasons claims fail or stall are avoidable with the right preparation.
Incorrect or incomplete Claim Notice
The Claim Notice must include specific statutory information. A freeholder who receives a defective notice is entitled to serve a Counter-Notice on that basis alone — and a technically defective notice can be struck out by the tribunal. Use a solicitor or a guided platform to draft it precisely.
Non-statutory company articles
An RTM company incorporated with standard articles of association — the kind Companies House offers by default — does not meet the statutory requirements for an RTM claim. The company must be incorporated with model RTM articles from the outset; this cannot be corrected by amendment after the fact.
Insufficient participating leaseholders
If participation drops below 50% of qualifying flats before the acquisition date, the claim may fail. Some leaseholders lose interest or move on during the process. Keep members engaged and updated throughout — a clean line of communication makes a real difference to retention.
No management plan ready at acquisition
RTM companies that acquire the right to manage without a managing agent lined up, buildings insurance in place or a clear service charge plan face an immediate operational crisis. The four-month notice period is the time to get ready — treat it as a transition project, not a waiting period.
Freeholder challenging the claim
A freeholder who serves a Counter-Notice alleging the RTM company is not entitled can push the claim to the First-tier Tribunal. Most such challenges fail when the statutory process has been followed correctly, but they add time and cost. A properly served Claim Notice on a clearly qualifying building leaves very little room for a successful challenge.
Director burnout after acquisition
The most common long-term failure in RTM is not losing the claim — it is the volunteer director who drove the process burning out six months after acquisition. Understanding the ongoing obligations before you start, and having the right support tools in place, is as important as winning the claim itself. See what ongoing management looks like →
Questions leaseholders ask most
Answers to the questions that come up most often before a claim begins. If yours is not here, the eligibility checker and platform guides cover the detail.
Can the freeholder simply refuse our RTM claim?
No. The Right to Manage is a no-fault statutory right — the freeholder cannot refuse on the basis that they disagree with the decision or think the current agent is doing a good job. The only grounds on which a freeholder can serve a valid Counter-Notice are that the building or the leaseholders do not meet the eligibility criteria, or that the Claim Notice itself is defective. If the building and process are correct, the freeholder has no right of veto.
Do we need a solicitor to make an RTM claim?
You are not legally required to instruct a solicitor, but the procedural precision required — particularly around the Claim Notice and company formation — makes specialist support strongly advisable. A single error in the notice can invalidate the claim and reset the clock. Many leaseholders use a platform like RightToManage.ai to guide the process and access a vetted RTM solicitor through the professional services directory.
What happens to the service charge funds when RTM succeeds?
The outgoing managing agent is legally required to hand over any service charge funds held on behalf of leaseholders — including the reserve fund — to the RTM company on or before the acquisition date. The RTM company then holds and controls these funds going forward. You should request a full statement of accounts as part of handover preparation during the notice period.
Can we self-manage after RTM, without a managing agent?
Yes. The RTM company can choose to self-manage rather than appoint a professional agent. This is more common in smaller blocks where directors have relevant skills and time. It requires a clear understanding of the legal obligations — Section 20 consultation, service charge accounting, insurance requirements and more. The managing your RTM company guide covers the main director responsibilities in full.
What does RTM cost in total?
The main costs are company formation, legal fees for the claim, and any professional support you use. If the claim goes to tribunal, costs rise. In a straightforward claim, the legal costs are often shared across participating leaseholders, making individual contributions modest. A full breakdown is on the RTM costs and pricing page.
What happens if we lose enough leaseholders mid-claim to drop below 50%?
If participation falls below the threshold before the acquisition date, the claim may fail. This is one of the most underestimated risks: people move, sell or simply disengage during a six-to-twelve month process. Keeping members informed and engaged throughout the claim is not optional — it is part of managing the process. The RightToManage.ai platform includes communication tools specifically to help with this.
Ready to take the next step? Check your building's eligibility →
Already managing? See what comes after the claim →
Need professional help? Browse vetted RTM solicitors and agents →
Your building, your rules — without making it your second job
Most leaseholders who pursue RTM know what they want to get away from: rising service charges, ignored maintenance requests, an agent that treats them as an inconvenience. What they are less sure about is what they are signing up for on the other side.
RightToManage.ai is a subscription platform built around that honest concern. It guides you through every step of the claim — forming the company, serving notices, preparing for handover — and then stays with you once you are managing, with tools designed for volunteer directors who have a day job.
- Step-by-step claim guidance, including notice templates reviewed against statutory requirements
- Access to vetted solicitors, managing agents and accountants who specialise in RTM
- Compliance reminders and deadline tracking for RTM company directors
- AI-powered guidance on director responsibilities, Section 20 obligations and routine decisions
- Clear legal status: guided information and partner access, not legal advice
Find out in minutes whether your building qualifies
The eligibility check is free and takes around three minutes. It covers building type, lease length and leaseholder participation — the three criteria that determine whether RTM is open to you. No commitment, no personal details required to start.
RightToManage.ai provides guided information, process support and access to professional partners. It does not provide legal advice. The information on this page reflects the law as it applies in England and is intended as a general overview. We recommend taking specialist legal advice before serving any statutory notices. If you have questions, contact us at Contact us.