Right to Manage: a step-by-step guide for London leaseholders

The Right to Manage (RTM) under the Commonhold and Leasehold Reform Act 2002 lets qualifying leaseholders take over the management of their building without proving landlord fault and without paying a premium. Done properly it is transformative; done badly it collapses on a technicality and hands the landlord your costs.

Does your building qualify?

• Structure: a self-contained building or part.
• Composition: at least two flats; at least two-thirds held by qualifying tenants (leases originally granted for over 21 years).
• Non-residential cap: no more than 25% of internal floor area (excluding common parts) may be non-residential.
• Excluded: local authority buildings (unless the freeholder is a council but 100% leaseholders participate), resident-landlord buildings of ≤4 flats.

The RTM company (RTMCo)

Incorporate as a private company limited by guarantee using the prescribed articles in the Commonhold and Leasehold Reform (RTM Companies) (Model Articles) (England) Regs 2009. Every qualifying tenant must be entitled to membership. The RTMCo is the vehicle; the notices are given in its name.

The two statutory notices

1. Notice of Invitation to Participate (s.78 CLRA) — served on every non-member qualifying tenant. Must be in the prescribed form and give at least 14 days before the Claim Notice.
2. Claim Notice (s.79 CLRA) — served on the freeholder and any intermediate landlord and manager. Signed by the RTMCo, listing qualifying members and the acquisition date (at least 3 months ahead, and no earlier than 1 month after the last Notice of Invitation).

Landlord's counter-notice

Within one month the landlord may serve a counter-notice admitting entitlement or disputing it on specified grounds. If disputed, the RTMCo must apply to the FTT under s.84(3) within 2 months, or the claim lapses.

Membership arithmetic

At the date of the claim, RTMCo members must include qualifying tenants of at least half the flats. Under-count and the claim fails. Practical tips:

• Cross-check leases against the Land Registry title.
• Verify each participating leaseholder's lease is >21 years originally.
• Track "gone-aways" and estates — a member who has died creates a fragile count.

Costs

Under s.88 CLRA the RTMCo is liable for the landlord's reasonable costs incurred in consequence of the notice — not the costs of running a tribunal case, which sit under the ordinary no-costs regime plus limited rule 13 exceptions. Willow Court Management v Alexander [2016] UKUT 290 (LC) is the leading authority.

What changes on acquisition

• Management functions transfer — repair, maintenance, insurance, service charges.
• The landlord retains ownership of the freehold and the right to receive ground rent.
• Existing contracts are novated; you must give contract notices to service providers.
• Consultation and s.20 continue to apply — now with the RTMCo as landlord for these purposes.

Where cases collapse

• Missing a single qualifying tenant off the Notice of Invitation.
• Getting the acquisition date arithmetic wrong (must be at least 3 months after the Claim Notice).
• Signing the Claim Notice in the wrong company name.
• Filing the FTT application late.

Next steps

• If disputes with the current manager are severe and RTM is not viable, consider [appointment of a manager under s.24 LTA 1987](/guides/appointment-of-manager-section-24-landlord-tenant-act-1987-guide).
• For collective ownership rather than just management, see [Leasehold enfranchisement — costs and premium](/guides/leasehold-enfranchisement-costs-and-premium-calculator-2026).