What is Right to Manage?
Right to Manage (RTM) lets qualifying flat owners take over certain building management functions through an RTM company. You do not need the landlord's agreement or evidence of bad management. You can manage the building yourselves or appoint a managing agent. See GOV.UK's RTM guidance (opens in a new tab).
The right comes from the Commonhold and Leasehold Reform Act 2002 (opens in a new tab). The landlord keeps the freehold. RTM does not buy the building or extend anyone's lease; collective enfranchisement is a separate option.
General information, checked on 8 October 2026, rather than advice on an individual claim. Have a specialist adviser check your leases, building boundaries, notices and deadlines.
Does your building qualify?
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A self-contained building or part
The statutory structural tests must be met. A self-contained part has additional tests about independent redevelopment and services. Separate blocks need separate claims; RTM does not transfer management of facilities shared with other buildings. Those stay with the existing manager, and service-charge obligations for them continue (FirstPort v Settlers Court [2022] UKSC 1 (opens in a new tab), paragraphs 61–62). See section 72 (opens in a new tab) and LEASE's building guidance (opens in a new tab).
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At least two qualifying flats
At least two flats must be held by qualifying tenants, and qualifying tenants must hold at least two-thirds of all flats. A long lease normally means one originally granted for more than 21 years. Check the statutory categories for unusual leases. See section 72 (opens in a new tab) and GOV.UK's eligibility checklist (opens in a new tab).
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No more than 50% non-residential space
Non-residential internal floor area must not exceed 50%, ignoring common parts. The limit rose from 25% on 3 March 2025 in England and Wales under SI 2025/131 (opens in a new tab). This RTM change is already in force.
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Enough members before the claim
Qualifying tenants of at least half of all flats must belong to the RTM company when it gives the claim notice. Where there are only two qualifying tenants, both must join. For example, a 20-flat building needs qualifying tenants representing at least 10 flats. These are the membership tests in section 79 (opens in a new tab).
Check the exclusions
A local housing authority as a qualifying tenant's immediate landlord prevents RTM. A resident-landlord exemption can apply to a converted building with no more than four units, including any non-residential units. Usually the freeholder, or an adult family member, must have lived in a flat as their only or main home for the past 12 months. Different rules apply after a change of freeholder. Other exclusions and rules about existing RTM arrangements also need checking. See Schedule 6 (opens in a new tab) and GOV.UK's resident-landlord guidance (opens in a new tab).
The RTM process
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Form the company
Register a company limited by guarantee with the prescribed RTM articles for England or Wales, as appropriate. Recruit directors and plan how the company will operate. LEASE explains the company requirements (opens in a new tab).
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Invite the other qualifying tenants
Serve a notice inviting participation on qualifying tenants who have neither joined nor agreed to join. Allow at least 14 days before serving the claim notice. See section 78 (opens in a new tab) and section 79 (opens in a new tab).
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Serve the claim notice
Use the correct notice and serve all required parties. The counter-notice deadline must be at least one month after service. The proposed acquisition date must be at least three months after that deadline. See LEASE's notice checklist (opens in a new tab).
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Deal with any dispute promptly
If a counter-notice disputes entitlement, the company must apply to the appropriate tribunal within two months, starting on the day it was given, to pursue the claim. With several counter-notices, the period runs from the last one. This is the First-tier Tribunal (Property Chamber) in England or Leasehold Valuation Tribunal in Wales. See section 84 (opens in a new tab) and LEASE's dispute guidance (opens in a new tab).
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Prepare for the acquisition date
Arrange insurance, services, records and a working budget before taking over. Do not assume the previous manager's contracts automatically transfer. Disputed claims can change the acquisition date. The notice periods are legal minimums, not a promise that the whole project will finish in four months.
Use LEASE's full process guide (opens in a new tab) alongside professional advice, including its guidance on new contracts and transfer of funds.
August 2026 judgment: notice defects
On 27 August 2026, the Supreme Court held in Cresta Court that failure to comply with the participation-notice requirements did not invalidate the claim notice. The duties still apply and compliance can be ordered. If a notice was missed, get advice rather than assuming the claim must restart. Read the Supreme Court judgment (opens in a new tab).
Costs and the March 2025 reforms
Budget for company formation, your own advice and the resources needed to manage the building. RTM does not involve paying a purchase price for the freehold, but it does not make management free.
Since 3 March 2025, RTM companies and their members are generally protected from liability for another person's costs arising from the claim notice. Exceptions remain, including certain costs orders where a claim ends and the company acted unreasonably. Under section 87B, current and former members are then personally liable, jointly and severally with the company. Leaving the company does not remove that exposure unless you assign your lease and the assignee becomes a member. Costs of statutory information requests and litigation need separate consideration. See section 50 of the 2024 Act (opens in a new tab) and its commencement regulations (opens in a new tab). Ask your adviser about exposure before serving or withdrawing a notice.
What changes after takeover?
The company takes on the relevant lease management functions, such as repairs, maintenance, services and insurance. It must run those functions within the leases and the law. Directors also have company responsibilities. Appointing a managing agent helps with administration, but does not remove the need to oversee the company's work. LEASE explains the transfer of responsibilities (opens in a new tab).
Since 18 November 2025, new company directors must verify their identity before incorporation or appointment and supply their Companies House personal code for the filing. Existing directors follow their applicable confirmation-statement timetable; there is no single November 2026 deadline for everyone. Ordinary company members are not covered merely through membership. Check Companies House's identity-verification timetable (opens in a new tab).
RTM does not transfer every landlord power. For example, forfeiture remains outside its management functions. Certain lease approvals require notice to the landlord, with a procedure for objections. Check the limits in section 96 (opens in a new tab) and section 98 (opens in a new tab).
Before claiming, agree who will keep records, approve spending, arrange repairs and answer residents. Ask for a handover plan covering documents, outstanding works, service charge balances and contracts. These practical decisions deserve as much attention as the notices.
Next steps and sources
Check eligibility, speak to neighbours and obtain a written quote from an RTM specialist. Agree a management plan before you commit. To organise community discussions, explore Residents Circle's discussion tools.