© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
The Commonhold and Leasehold Reform Act 2002 created a new “no fault” right to manage on the part of leaseholders who can now force their landlord to transfer the management functions to a special kind of company, a Right to Manage (RTM) company.
The Right to Manage is a group right for leaseholders of flats to manage the building; there is no need for the landlord to consent to the establishment of an RTM company and no order of a court or LVT is necessary; there is no premium to pay to exercise the right and further, the right is available regardless of any alleged deficiencies in the existing management. RTM is not exercisable unless the building qualifies and there are sufficient qualifying leaseholders who are willing to participate in RTM. The formal procedure for exercising the RTM is started by the RTM Company serving a Claim Notice on the Landlord; it then follows a prescribed route.
Any person served with a notice of claim by an RTM company may give a counter-notice within the time period allowed in the notice of claim. The counter-notice may either (i) consent to the RTM company acquiring the management on the date prescribed, or (ii) allege that the RTM company is not entitled to acquire the management of the property. Reasons must be given for any allegations made.
If there have been no disputes as to the notice of claim, the RTM company will acquire the right to mange on the date specified in the notice of claim. If there have been disputes and the LVT has determined in favour of the RTM company, the acquisition date will be three months after the determination becomes final.
Leaseholders will also invariably be liable for the landlord’s costs. The RTM does not necessarily have to take over the day-to-day management of the building; it can appoint managing agents of its choice to take over the Company’s responsibilities.
Where an RTM Company has acquired RTM, it will be responsible or the management functions under all of the leases held by qualifying tenants in the building. To assess the exact management functions under the RTM will be responsible lessees will need to check the terms of the lease, but in the main the points are: the RTM company will acquire responsibility for repairs, maintenance, insurance and also services.
RTM companies place tenants in a position of having to collect service charges from each other; this can mean that relationships between neighbours and friends can sometimes get strained. RTM companies can be hard work and although the procedure seems fairly straightforward, legal advice will almost always be needed.
For further information regarding this article, contact Roger Hardwick, Head of Leasehold Enfranchisement, Brethertons Solicitors.