What Is Right to Manage?
Right to Manage, often referred to as RTM, gives leaseholders who qualify in England and Wales the right to take over management of their freeholder or managed property without having to provide proof of mismanagement or fault. The Right to Manage was first granted in 2002 under the Commonhold and Leasehold Reform Act.
Simply put, it relates to a transfer of responsibility from the freeholder (or landlord) to a specific company set up by the leaseholders to continue managing their building. An RTM company is essentially formed the same way any other company is. Once in place, will be responsible for overseeing complete management, upkeep, and maintenance of a block property.
At Lion & Castle, we offer a Right to Manage consultancy service to provide flat owners with advice regarding how to take over responsibility for the overall management of their building. There are many benefits to creating an RTM company, including but not limited to:
- It allows leaseholders to take total control in the management of their building
- And it allows leaseholders to decide how their property is managed
Running a building through an RTM company is considered a much fairer and more democratic way of block management compared to the more traditional model of freeholder control.
To legally qualify for the development of a Right to Manage company, 71% of your block must be dedicated entirely to residential use, and 66% of the property’s flats must be occupied by residents who have held an original lease for more than 21 years.
When formed, Right to Manage companies often hire professional managing agents to assist them in the running of a property.
By doing so, all management responsibilities are passed down, which includes maintenance and the hiring of contractors, for example.
Get In Touch
If you are interested in setting up an RTM company but don’t know where to begin, get in touch with the Lion & Castle team today. We have years of experience in obtaining the Right to Manage and further managing developments. For an informal discussion, simply call or email Lion & Castle today and we’ll be happy to help.