Right to Manage (RTM) Explained

A Practical Roadmap from Eligibility to Smooth Handover

If you are a leaseholder in London or the surrounding areas, you may have felt frustrated by rising service charges, slow maintenance response times, or a lack of transparency from your current managing agent. Fortunately, the law provides a powerful solution: the Right to Manage (RTM).

Exercising your Right to Manage in London is a legal mechanism that empowers leaseholders to take full control of their building’s management without needing to prove mismanagement or obtain a court order. However, while the right is statutory, the process requires precision.

At Uniq Block Management, we specialise in guiding leaseholders through this transition. This practical roadmap explains the RTM journey from the first spark of interest to a successful, professional handover.

What is Right to Manage (RTM)?

Introduced by the Commonhold and Leasehold Reform Act 2002, RTM allows leaseholders to take over the management functions of their building from the freeholder by setting up a dedicated RTM company. Once established, this company becomes responsible for everything from cleaning and repairs to insurance and service charge collection.

The most significant advantage? You get to choose your own managing agent—one that prioritises your building’s needs and provides the transparency you deserve.

Step 1: Confirming Your Eligibility

Before starting the process, you must ensure your building meets the requirements. The legal requirements are strict, and any error here can stall your application. To exercise the Right to Manage London properties, the following must apply:

1. The Two-Thirds Rule: At least two-thirds of the flats in the building must be held by “qualifying tenants” (leaseholders whose original lease was granted for more than 21 years).
2. The 50% Consensus: At least 50% of the total number of flats in the building must be members of the RTM company and in agreement to move forward.
3. The Residential Limit: The building must be at least 75% residential. If more than 25% of the internal floor area (excluding common parts) is commercial (e.g., shops or offices), the building typically does not qualify for RTM.
4. Building Structure: The building must be self-contained (or a self-contained part of a building).

Step 2: Forming the RTM Company

Once eligibility is confirmed, the next step is to incorporate a Right to Manage Company at Companies House. This is a private company limited by guarantee.

At Uniq Block Management, we assist leaseholders in London with the formal formation of this company. We provide guidance on the Articles of Association and help you appoint the initial Directors and Company Secretary. This stage is crucial because the RTM company will be the legal entity that takes over the contracts and responsibilities of the building.

Step 3: Serving the Notice of Invitation to Participate

Legally, you must invite every qualifying leaseholder in the block to join the RTM company. This “Notice of Invitation to Participate” ensures that the process is inclusive and transparent. Even those who were initially hesitant must be allowed to have their say and become members.

Step 4: Serving the Claim Notice

After the invitation period, the formal Claim Notice is served on the freeholder. This notice informs them that the RTM company intends to take over the management of the premises on a specific date (the “acquisition date”).

The freeholder has a set period to respond with a “Counter Notice.” They can only dispute the claim on specific legal grounds, such as the building not meeting the eligibility criteria. If no valid dispute is raised, the management rights automatically transfer on the date specified in your notice.

Step 5: The Handover and Transition

The final phase is the “Acquisition Date”—the day the RTM company officially takes the reins. A smooth handover is vital to ensure that essential services, such as fire safety compliance, cleaning, and emergency repairs, continue without interruption.

Uniq Block Management acts as your professional partner during this transition. We handle the heavy lifting, including:

• Recovering service charge funds and records from the previous agent.
• Reviewing existing maintenance contracts to find more cost-effective local contractors.
• Setting up a dedicated portal for leaseholders to report issues and track spending.
• Ensuring full compliance with the latest health and safety and fire regulations.

Why Choose Uniq Block Management for Your RTM?

Taking on the management of a London block is a significant responsibility. While the RTM gives you control, it also brings legal duties. This is where a specialist partner becomes invaluable.

Uniq Block Management brings over 15 years of industry expertise to your doorstep. Serving London, Essex, and Hertfordshire, we are known for our “Personal Touch” and proactive approach.

• Proven Track Record: We have over 29 positive Google customer reviews from residents and directors who have seen the “Uniq” difference firsthand.
• Transparent Communication: We use modern ticketing systems and cloud-based reporting to ensure you always know where your service charges are being spent.
• Local Expertise: Our deep knowledge of the London property landscape allows us to source the best contractors at competitive prices, often reducing service charges for our clients.

Take Control of Your Building Today

The Right to Manage is your path to a better-maintained, more affordable home. Don’t let poor management diminish the value of your investment.

If you are ready to explore Right to Manage in London or the surrounding areas, contact the experts at Uniq Block Management for a free, no-obligation consultation.

Call us today: 0203 897 2817 Contact us: www.uniqblockmanagement.co.uk/request-a-quote/

Experience the power of professional, transparent, and local block management. Your building, your choice.