Right to Manage

Right to Manage (RTM) is the legal right for leaseholders to take over the management responsibility of their property from the freeholder. The right was created by the Commonhold and Leasehold Reform Act 2002.

The following outlines the steps that would need to be taken to take over the management responsibilities from the freeholder and create a Right to Manage company. Amber Management have worked through this process with a number of clients and can work with you to achieve the desired outcome.

Getting leaseholders support

To set up a Right to Manage company the following simple criteria must be met:-

    • More than 50% of leaseholders must support the move,
    • At least two thirds of the leaseholders must have leases on their property that were originally of 21 years or longer,
    • No more than 25% of the floor area must be used for commercial purposes.

If your block meets the above, then with the support of leaseholders an RTM company can then be created.

Creating an RTM Company

An RTM company can be created directly with Companies House, or with the help of Amber Management who will manage the entire process with you.

Appointing Company Directors and Secretary

Once the company has been created you will need to decide who the company Directors will be and these will need to be elected by the leaseholders. Click here for information about the responsibilities of the Directors and Secretary.

Inviting Leaseholders

Once the directors have been elected, the Directors must invite all leaseholders to join the RTM company.

Serving notice

The RTM company must produce the Notice of Claim on the Freeholder, in compliance with the legislation. Amber Management can work through this process with you to ensure that the correct information is supplied and compliant.

Take over the management

The newly created RTM company will then take over the management of the development and are free to appoint a new managing company.