Introduction to Right to Manage

A million flat leaseholders in the UK and the majority do not own the freehold and may have little control over the day-to-day management of the block. But now flat owners, such as tenants and leaseholders, have The Right To Manage (RTM) and to take overall responsibility for the management of their property. After all the purchase of a flat represents a large financial commitment and it is only right that the leaseholder owners have the right to manage their building and to control the way management charges are raised and collected and the way in which monies are spent. There have been circumstances where landlords did not act in a proper manner and where buildings fell into disrepair through no fault of the leaseholders.

The Commonhold and Leasehold Reform Act 2002 gave leaseholders this right of self-management if they incorporate a Right to Manage company. The leaseholders do not have to show that the landlords or the landlord’s managing agents have failed in their duty of care in managing the property. Relevant notices are served in strict accordance with time scales that are set out in the legislation.

To help you decide whether a Right To Manage company is suitable will depend on a number of factors. Unless the members of the RTM appoint a managing agent, then some or all of the leaseholders will need to administer the RTM on a daily basis.

These duties may include the collection of service charges and the payment of bills.

To decide whether or not a Right To Manage company is right for you, Brighton Company Formations have set out a summary of what we see are the advantages and disadvantages of managing your building through a RTM.

We are able to advise and assist you and remove any concerns you may have concerning Right To Manage. We can offer advice to help you decide on whether a RTM is right for you and a full service where we serve all the required notices, such as:

  • S78 Notice Inviting Participation on all qualifying leaseholders who are not members of the RTM company
  • S79 Notice Of Claim
  • S82 Right To Information Notice
  • S83 Right Of Access
  • S92 Contractor Notices and Contract Notices if served by the landlord
  • S93 Duty To Provide Information Notice

Latest News

Great Service

Just wanted to say thank you for doing a splendid job in setting up the Right To Manage company and issuing the notices. Now we feel we are in control of what goes on with the block.

Posted: Thu 16-Jun-2011 12:55PM

Right To Manage

The right to manage (RTM) is available to leaseholders of flats and does not apply to houses. To qualify the building must meet the following criteria and there is a requirement to have a minimum number of leaseholders; -at least two thirds of the flats must be let to ‘qualifying tenants’ i.e. held on leases which were originally granted for more than 21 years. -any commercial area does not exceed 25% of the total floor area -RTM does not apply to premises that are classed within Residential Landlord Exemption i.e. the premises cannot be purpose built, be no more than 4 flats and one of the flats must be occupied by the freeholder or an adult member of their family as their only or principal home for the last 12 months

Posted: Tue 08-Feb-2011 4:04PM

Right To Manage Company Formation

As the right to manage is exercised by the right to manage company and not the individual leaseholders it is necessary to incorporate a right to manage company. The articles are prescribed by legislation and are based on the Companies Act 2006 model articles for companies limited by guarantee. Right to manage companies incorporated after 9th November 2009 will have articles that comply with current legislation. Right to manage companies incorporated before 8th November 2009 will have the ‘old style memorandum and artilcles’ and there is therefore a transition period until 30th September 2010 at which point the Companies Act 2009 artilces will aply to all right to manage companies regardless. If you require any help in incorporating a right to manage company please call Brighton Company Formations Limited on 01273 831891

Posted: Mon 19-Jul-2010 4:24PM

Why use a Right To Manage?

The Commonhold and leasehold Reform Act 2002 provides a right for leaseholders to change the appointment of the management of their building to another provider, by incorporating a right to manage company to take over from the freeholder those rights of appointment for managing the building. Some of the reasons to use a right to manage company is to reduce service charges and to gain control of who manages the block of flats. Right To manage Company can help you with the right to manage process so please call us on 01273 831891

Posted: Fri 02-Jul-2010 11:02AM

Control your service charges

If you live in a block of flats or a house converted into flats you can take control of your service charges by forming a right to manage company. Three conditions must be met: at least half of th eflat owners must consent, at least three quartres of the building must be residential and at least two thirds of the flats must have long leases. Please feel free to contact Right To Manage Companies on 01273 831891.

Posted: Fri 02-Jul-2010 10:45AM

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