The “Right to Manage” (RTM) is a legal provision in the United Kingdom that allows leaseholders of residential properties, typically in a block of flats or apartments, to take over the management responsibilities of their building from the landlord or property management company. This provision is designed to give leaseholders more control over the management and maintenance of their properties.
RTM is governed by the Commonhold and Leasehold Reform Act 2002 in England and Wales, the Commonhold Act 2004 in Scotland, and the Commonhold and Leasehold Reform Act 2002 (Commencement No. 5, Transitional Provisions, and Savings) (Wales) Order 2004 in Wales.
To exercise the Right to Manage, leaseholders must meet certain eligibility criteria, including:
The building must qualify
The building must contain at least two flats and must meet the statutory criteria. Some buildings, such as those with more than 25% commercial space, may be excluded.
The leaseholders must meet the eligibility criteria:
A majority of leaseholders in the building (usually at least 50% or two-thirds) must be willing to participate in the RTM process.
The RTM company must be formed:
Leaseholders must establish a Right to Manage (RTM) company, which is a
private company limited by guarantee. The leaseholders become members of the company, and it is this company that will take over the management responsibilities.
Notice and process:
The RTM company must serve a formal notice to the landlord or property management company, following the legal process outlined in the respective legislation. There are specific timelines and requirements for serving the notice.
Once the notice is served and the process is successfully completed, the RTM company becomes responsible for the management functions such as maintenance, repairs, insurance, and service charge administration. However, it’s important to note that the RTM does not affect the ownership of the property or the lease itself.
Regarding London, the Right to Manage London legislation applies across England, Wales, and Scotland. Therefore, leaseholders in London can also exercise their Right to Manage if they meet the eligibility criteria and follow the necessary legal procedures outlined in the respective legislation.
It’s recommended to seek legal advice or consult with professionals experienced in leasehold law to fully understand the requirements and process involved in exercising the Right to Manage in London or any other location.