Right to Manage: Take Control Without Buying the Freehold

The Right to Manage lets leaseholders take over building management without purchasing the freehold and without proving fault. Learn how it works, who qualifies, and the total costs involved.

What Is the Right to Manage?

The Right to Manage (RTM) allows leaseholders to take over management of their building from the freeholder — without needing to purchase the freehold and without having to prove any fault on the freeholder's part. Introduced by the Commonhold and Leasehold Reform Act 2002, it was significantly expanded by the Leasehold and Freehold Reform Act 2024.

RTM vs Enfranchisement: The Key Difference

RTM is about management control, not ownership. The freeholder still owns the building. Leaseholders form an RTM company that takes over management responsibilities including appointing managing agents, overseeing service charges, and arranging building insurance and maintenance.

Qualification Requirements

• At least two-thirds of flats must be held on long leases
• At least 50% of all leaseholders must participate in the RTM company
• No more than 25% non-residential floor area
• Under the 2024 Act: RTM is available to more complex building structures

Unlike enfranchisement, there is no premium payable for RTM — the freeholder cannot demand compensation for losing management control. This makes RTM a zero-premium alternative, with only legal fees to pay.

Costs

• Solicitor to form the RTM company and serve the claim: £1,500–£3,000 shared between participants
• Per-leaseholder cost: often just £200–£600

Limitations

RTM does not remove ground rent obligations, extend leases, or allow decisions about the freehold itself. Many buildings use RTM as a first step, then pursue collective enfranchisement once all leaseholders are ready.