RTM from around £2,000 in legal fees. 4-6 months if uncontested. No purchase price, no negotiation. If you meet the statutory requirements, the freeholder cannot block the right itself, only contest the detail. What happens next is where most buildings get it wrong.
Hafer Road honesty: we enfranchised, we didn’t do RTM. But we’ve run a 16-flat building day-to-day for 2,600+ hours. The obligations on this page are what we carry every week.
This page describes the position in England and Wales. Scotland and Northern Ireland have different systems. Information only, not legal advice. Building Trust is a technology company, not a law firm. Always take professional advice on your specific situation.
Most readers arrive thinking RTM is a fight with the freeholder. It is not. It is a procedural right set out in statute. Served correctly, most freeholders do not contest. The drama is in the preparation (getting 50% of your neighbours on side and drafting the notices without defects), not the fight. This page is the plumbing.
The Right to Manage was introduced by the Commonhold and Leasehold Reform Act 2002CLRA 2002, Part 2, Chapter 1. Came into force on 30 September 2003. Gives qualifying leaseholders the right to manage without proving fault.. It gives leaseholders the right to take over management of their building. No need to prove the freeholder has done anything wrong. No purchase price.
The building contains at least two or more flatsSection 72, CLRA 2002. The building must be a self-contained building or part of a building, with two or more flats held by qualifying tenants. held by qualifying tenants (long leases, originally 21+ years).
At least 50% of qualifying leaseholders must join the RTM company as members before the claim notice is served.
No more than 25% of the building's internal floor area is non-residential.
The building has a resident landlord and contains four or fewer flats (and the landlord occupied before the lease was granted).
An RTM company already manages the building.
The building is part of a larger estate and the management obligations are inseparable from other buildings. This is the common blocker for large estate developments.
Answer six questions and we'll tell you whether your building qualifies for Right to Manage, what the process looks like, and what to do next.
In one line each: RTM is cheap, keeps the freeholder, and only transfers management. Enfranchisement is expensive, removes the freeholder, and transfers ownership. If the problem is the managing agent, RTM. If the problem is the ground rent or the development rights, enfranchisement.
Cost: Legal fees only. Typically £2,000-£5,000 total. Can be higher if the freeholder contests.
What you get: Control of management (service charges, maintenance, insurance, contractors). Freeholder keeps ownership.
Ground rent: Still payable to the freeholder.
Development: Freeholder retains development rights (roof, land).
Best when: The main issue is poor management, high service charges, or an unresponsive managing agent.
Cost: Purchase price + legal + valuation. £10,000-£100,000+ depending on building.
What you get: Full ownership of the freehold. Complete control of building and land.
Ground rent: No ongoing ground rent once the purchase completes.
Development: Leaseholders own the development rights.
Best when: Ground rent is escalating, there are development opportunities, or you want full long-term control.
You need 50% to join the RTM company. Most people will not respond to a legal summary. They respond to a specific frustration they already have. Pick the trigger that applies to your building.
A Section 20 consultation lands on the doormat. Major works: roof, windows, communal heating. The bill could be £10,000-£30,000 per flat. The specification was chosen by someone who does not live here and does not pay the bill. With RTM, you choose the contractor, the specification, and the timing.
What to say: "We are about to be asked to pay £X for works we had no input on. If we managed the building ourselves, we would control the scope, the contractor, and the cost."
The management fee alone is £2,000+ per flat. The communal areas look tired. Repairs take months. You have asked questions and not received clear answers. Under RTM, you appoint the managing agent (or self-manage), you set the budget, and you see every invoice.
What to say: "We pay £X a year in service charges. We can check if that is reasonable and, if it is not, take control of how the money is spent."
Calls go unanswered. The building is not maintained. Compliance deadlines are being missed. Fire risk assessments are out of date. The managing agent works for the freeholder, not for you. With RTM, you choose the managing agent, and you can replace them if they underperform.
What to say: "The current managing agent is appointed by the freeholder. We cannot remove them. Under Right to Manage, we can."
No dramatic failure. Just the sense that decisions are being made about your home by people who have never set foot in it. RTM gives you a seat at the table. You run the building the way you want it run.
What to say: "This is our home. We should decide how it is looked after."
Start small. Find 2-3 people who already share the frustration. Build momentum before approaching everyone.
Use the service charge benchmark. Run each neighbour's numbers through our Service Charge Benchmark. "Your charge is 35% above the benchmark" is more persuasive than "I think it is too much."
Be honest about what changes. RTM means control, but it also means responsibility. Directors carry personal liability. Be upfront about this.
Put a one-pager through the door. Name the problem, the cost, and the next step. Keep it to one side of A4. People need time to think.
Offer to do the work. Most people will support RTM if someone else runs the process. That person is you.
Most RTM failures happen not because of the legal process, but because the directors never agreed what they were trying to achieve. Get this right first. Write it down. Everything else flows from it.
Every decision the board makes should pass one test: does this maximise the long-term value of our properties while keeping service charges as low as possible, consistent with full legal compliance and no surprise bills?
The building should be well-maintained, compliant, and attractive to buyers and lenders. Every pound spent on maintenance protects the value of every flat.
Service charges should cover compliance and proper maintenance. Nothing more. No gold-plating, no hidden fees, no inflated management costs.
A properly funded reserve (sinking fund) means no emergency levies. Plan for the roof, the windows, the lift. Budget over 10-20 years, not year to year.
Someone needs to be the point of contact, the person who chases contractors, checks deadlines, and calls board meetings. This does not mean they make all the decisions. It means they make sure decisions get made. Without a lead, everything drifts.
The person who authorises payments should not be the same person who selects the contractor. Dual-signatory bank accounts are non-negotiable. Publish the accounts to all leaseholders every year. Transparency prevents suspicion. Suspicion destroys buildings.
Agree a simple terms of reference: how decisions are made (majority vote at board meetings), what requires an AGM resolution (anything over a threshold, say £5,000 per unit), how complaints are handled, and who can authorise emergency spending. Write this down before you need it. Trying to agree process in the middle of a dispute is impossible.
Once you are a director, you have a legal duty to act in the interest of the company (which means all leaseholders), not just yourself. Your flat is on the ground floor and the roof does not affect you? You still have a duty to maintain it. Understanding this distinction early prevents most governance failures.
Directors sell their flats. People lose interest. The lead director burns out. Plan for succession from the start: at least 3 directors, documented procedures so anyone can pick up, and everything in a system rather than in someone's inbox. BLOCK-iQ exists precisely because of this problem.
From experience: At Hafer Road, we wrote our north star and governance terms before we started managing the building. It has prevented every potential conflict since. When someone pushes for gold-plated landscaping or objects to a necessary repair, the answer is always: "Does this align with our agreed mission?" It depersonalises every decision.
The whole process typically takes 4-6 months if uncontested. Longer if the freeholder serves a counter-notice and the dispute goes to tribunal. The freeholder cannot refuse if you meet the statutory requirements. They can only challenge on technical grounds, and they often do. Most contested RTM claims are won or lost on notice-service technicalities.
Where you need a specialist: you can handle most of the recruitment, governance and admin yourself. The claim notice is the exception. Most contested RTM claims are lost on technical defects in that one document. Budget for a specialist leasehold solicitor to draft and serve it (typically £1,500-£3,000 of the total legal spend).
Register a private company limited by guarantee at Companies House. The company must have "RTM" in its name. The memorandum and articles must comply with the RTM Companies (Model Articles) (England) Regulations 2009SI 2009/2767. Sets out the model articles that an RTM company must adopt or substantially follow.. Cost: £12 online at Companies House. A solicitor can do this for you as part of the RTM claim.
Each qualifying leaseholder who wants to participate must become a member of the RTM company. This is a simple written notice. You need at least 50% before you can serve the claim notice. More is better. Check who owns each flat via Land RegistryHM Land Registry. Download title registers at £3 each to confirm ownership and qualifying status. (£3 per title).
Before serving the claim notice, you must invite all qualifying leaseholders (not just those who have joined) to participate. This notice must give at least 14 daysSection 78, CLRA 2002. The notice inviting participation must allow at least 14 days for response. for responses. Anyone who joins after this stage still counts toward your 50%.
The formal claim notice must follow the prescribed formSection 79, CLRA 2002. The claim notice must specify the RTM company, list the participating leaseholders, and give a date on which the RTM company proposes to acquire management (not less than one month after the counter-notice date).. It sets out the RTM company details, the participating members, and the proposed date for taking over management. This is the point of no return. Get a solicitor to draft it.
The freeholder has one monthSection 84, CLRA 2002. The landlord may give a counter-notice within one month of receiving the claim notice. If no counter-notice is given, the RTM company acquires management on the date specified. to respond. They can either accept (or not respond, which counts as acceptance) or serve a counter-notice disputing the claim. Common grounds for dispute: the building does not qualify, the notice is technically defective, or the 50% threshold was not met.
Treat this month as your checking window. Most contested RTM claims are won or lost on technical defects in the claim notice itself. Once the month closes, a withdrawn-and-resubmitted notice costs you three more months of process, not one. Go back through the notice now: participating members, dates, prescribed form, service on every required party. If disputed, either side can apply to the First-tier TribunalThe Property Chamber of the First-tier Tribunal determines RTM disputes. No cost risk for the RTM company unless it acts unreasonably..
On the acquisition date, the RTM company assumes all management functions. The former manager must hand over records, accounts, keys, contracts, and insurance documents. You are now responsible for running the building. This is where the real work begins.
Budget tip: Legal fees for the RTM process typically run £2,000-£5,000. In some engagements the participating leaseholders split this directly (for a 16-unit building with 10 participants, that is £200-£500 each). In others the solicitor bills the RTM company itself, which then recovers the cost via service charge, so non-participants carry their share too. Agree the billing route with your solicitor before instructing. The freeholder cannot recover their costs from you unless the claim goes to tribunal and is found to be unreasonable. Figures exclude VAT unless stated.
This is the part most guides skip. Taking control feels like a win. But from day one, the directors of the RTM company carry personal liability for the full set of statutory compliance obligations. Here is what needs to be in place.
The items below are the price you pay for control. Miss one and the consequences fall on the directors personally. Not on the freeholder, not on the managing agent you replaced, not on the RTM company as an abstract entity. On you, and on the neighbours who signed up alongside you. The content on this page exists because most directors only find this out the first time something goes wrong.
Confirm the existing policy transfers or arrange new cover immediately. The building must be insured at all times. Check the rebuild valuation is current (within 3 years). If there is a gap in cover, directors are personally liable for any claim.
Obtain a copy from the outgoing manager. If it is expired or does not exist, commission one immediately from a BAFE-registered assessor. Required under the Regulatory Reform (Fire Safety) Order 2005. Criminal offence to operate without one. Budget: £300-£600.
If the building was built before 2000, you need an asbestos management survey and plan for all communal areas. Required under the Control of Asbestos Regulations 2012. Commission a UKAS-accredited surveyor. Budget: £200-£500. Re-inspect annually.
Mandatory from 6 April 2026 under the Fire Safety (Residential Evacuation Plans) (England) Regulations 2025Laid 4 July 2025, in force 6 April 2026. Applies to buildings with two or more sets of domestic premises that are either (a) 18m+ or 7+ storeys, or (b) 11m+ with simultaneous evacuation strategies in place. Gov.uk factsheet.. Identify residents who may need assistance in a fire. Offer person-centred fire risk assessments to those individuals. Agree a written PEEP with anyone who requests one. Keep on file and review annually.
Accounts, contracts, insurance policies, keys, access codes, contractor details, compliance certificates, service charge accounts, sinking fund balances, and leaseholder contact information. Document what you receive and what is missing.
Your RTM company is a limited company. You must file a confirmation statement annually (£13) and accounts on time. Appoint directors formally. Late filing: automatic fines (£150-£1,500). Persistent non-compliance: strike-off and criminal prosecution of directors.
Set the first year's budget. Issue service charge demands with the prescribed summary of rights and obligations (Section 21B, Landlord and Tenant Act 1985). Without this summary, your demands are not enforceable. Send accounts within 6 months of your year end.
Open a dedicated bank account in the RTM company name. Set up dual-signatory controls. Transfer the sinking fund balance from the outgoing manager. Keep service charge money separate from any other funds. This is leaseholder money held on trust.
If you process personal data (and you will: names, addresses, contact details), you must register with the Information Commissioner's Office. Fee: £40/year for most small organisations. Failure to register is a criminal offence.
Beyond fire safety, you need a general health and safety risk assessment for communal areas. Slips, trips, falls, lighting, handrails, electrical safety. Review and update annually. Document everything.
Track every deadline: insurance renewal, fire risk assessment review, Companies House filings, service charge accounts, electrical safety certificates (every 5 years), gas safety (annual if communal), lift inspections (6-monthly). One missed deadline can mean personal liability.
For any works costing more than £250 per leaseholder, or long-term agreements over £100/year per leaseholder, you must follow the three-stage consultation process. Miss a stage and you can only recover £250 per flat regardless of actual cost.
AGM (required annually for most RTM companies). Regular updates on building matters. A process for handling complaints. Transparent accounts. The leaseholders gave you this responsibility. Keep them informed.
Board meeting minutes, financial decisions, contractor agreements, compliance certificates, risk assessments, leaseholder correspondence. If it is not documented, it did not happen. At tribunal, evidence is everything.
BLOCK-iQ tracks your statutory obligations automatically.
Compliance calendar, document storage, automated reminders, and a dashboard your whole board can see. The tool we built after running Hafer Road ourselves.
See how BLOCK-iQ works →RTM gives you the choice. Both routes work. But the decision affects your time commitment, your costs, and your liability exposure.
Pro: They handle day-to-day operations, contractor management, and accounts. Less time for directors.
Pro: Professional expertise on compliance, Section 20, and building management.
Con: Cost. £250-£750 per unit per yearBlock management fees vary widely. RICS-compliant agents typically charge £250-£500 per unit outside London. In London, fees of £400-£750+ per unit are common, particularly for smaller blocks where minimum fees (often £2,000-£3,000 p.a.) are spread across fewer flats. Block Management Company and Ringley Group. All figures exclude VAT., depending on location and building size. Smaller blocks in London pay the most per unit because agents apply minimum fees. For a 16-unit building, budget £5,000-£10,000 per year.
Con: You still carry personal liability as directors. The agent works for you, but the obligations are yours.
Best for: Buildings with 20+ units, complex mechanical systems, or directors with limited time.
Pro: No management fee. The saving goes straight back to leaseholders.
Pro: Direct control. No intermediary. Faster decisions, better contractor relationships.
Con: Time. Someone needs to manage contractors, accounts, compliance, and resident queries.
Con: Knowledge gap. Directors need to understand their legal obligations or risk personal liability.
Best for: Smaller buildings (8-20 units) with engaged directors who have time and are willing to learn.
We self-manage a 16-unit SoF building in Battersea. Happy to talk about how it works.
2,600+ hours of real management experience. We built BLOCK-iQ because we needed it ourselves.
Email us →Your lease will tell you the current management structure, service charge arrangements, and obligations. LEASE-iQ can extract the key facts you need. Answers in seconds, not days.
Not sure where you stand? Talk to us.
Setting up an RTM company takes coordination. We did it at Hafer Road and are happy to share what actually works.
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