Guides··8 min read
Right to Manage: The Complete Guide for UK Leaseholders
The hub guide to Right to Manage for UK leaseholders. What RTM is, who qualifies, how the process works, what it costs, and what changes the day after you take over.
Right to Manage: the complete guide
Right to Manage (RTM) is a statutory right that lets leaseholders take over the management of their building from the freeholder — without buying the freehold and without having to prove anyone has done anything wrong. It was created by the Commonhold and Leasehold Reform Act 2002 for one reason: leaseholders were paying the bills and had no real say in how the money was spent.
This is the hub page for everything we've written about RTM. The short version is on this page. The detailed walkthroughs sit on three dedicated guides linked throughout.
The three guides in this series
- Right to Manage: A Plain-English Guide — what RTM is, what it does and doesn't change, and the five-step process explained without jargon.
- How to Set Up a Right to Manage Company (Step by Step) — the practical, paperwork-by-paperwork walkthrough from Companies House incorporation to acquisition day.
- How Much Does Right to Manage Cost? — a realistic, line-by-line cost breakdown updated for the March 2025 reforms.
Who qualifies?
Your building qualifies if it ticks every one of these:
- It contains at least two flats
- At least two-thirds of the flats are held on long leases (originally over 21 years)
- No more than 50% of the internal floor area is non-residential (raised from 25% in March 2025)
- It is a self-contained building or self-contained part of a building
And the participation test:
- At least 50% of qualifying leaseholders must be members of the RTM company before you serve the claim notice
For a 6-flat block, that's three people. The bar is lower than most people assume. The plain-English RTM guide explains each test in detail with worked examples.
What changes when you win RTM
On the acquisition date specified in your claim notice, the right transfers. From that day:
- The RTM company controls the service charge budget and how it is spent
- You choose your own contractors, insurer and (if you want one) managing agent
- The previous manager must transfer service charge balances to the RTM company
- The RTM company becomes the leaseholders' point of contact for everything
What does not change: the freeholder still owns the freehold, your lease is unchanged, and ground rent (where payable) still goes to the freeholder. RTM swaps who runs the building — not who owns it.
How long it takes
Realistically four to six months end-to-end for a clean claim — most of which is statutory waiting periods nobody can shortcut. Anyone selling you "RTM in 30 days" is not telling the truth. The step-by-step setup guide includes a full timeline.
What it costs
For a small block of 5–15 flats, total costs typically land between £1,500 and £3,600 — divided between participating leaseholders. That's an order of magnitude cheaper than buying the freehold, and meaningfully cheaper than RTM was before March 2025 (leaseholders are no longer liable for the freeholder's legal costs). The full breakdown is in How much does Right to Manage cost?.
What changed in March 2025
The Leasehold and Freehold Reform Act 2024 brought three changes that came into force on 3 March 2025:
- The non-residential floor area limit rose from 25% to 50% — opening RTM to many more mixed-use buildings
- The RTM company no longer pays the freeholder's legal costs of dealing with the claim
- The prescribed Articles were amended — landlord votes are now capped at one-third of qualifying tenant votes
All three make RTM easier, cheaper and fairer than it used to be.
Where Proppa comes in
Winning RTM is the easy part. Running the building afterwards is where most groups struggle — because you suddenly own a budget, a compliance calendar, contractor relationships and a legal duty to provide the services the lease requires. WhatsApp groups and shared spreadsheets do not survive contact with a real service charge.
Proppa is built for exactly this: small self-managed blocks (3–15 flats) that want one place to track budgets, store documents, run AGMs and communicate with leaseholders — without paying a managing agent. Book a demo. First month free for founding blocks at launch.
Frequently asked questions
What is Right to Manage in simple terms?
Right to Manage is a legal right that lets leaseholders take over the day-to-day management of their block from the freeholder, without buying the freehold and without proving fault. You form an RTM company, recruit members, serve the prescribed notices, and on the acquisition date the right transfers.
Who can apply for Right to Manage?
Any group of qualifying leaseholders in a building that meets the statutory tests — at least two flats, two-thirds held on long leases, no more than 50% non-residential floor area, and self-contained. At least 50% of qualifying leaseholders must be members of the RTM company before you serve the claim notice.
How much does Right to Manage cost in the UK?
For a small block, total costs typically land between £1,500 and £3,600 — divided between participating leaseholders. Since March 2025 you no longer pay the freeholder's legal costs, which has made RTM meaningfully cheaper.
How long does it take to get Right to Manage?
Four to six months for a clean claim. The minimum from claim notice to acquisition is just over four months because of statutory waiting periods (one month for the freeholder's counter-notice plus a minimum three-month acquisition date).
Can the freeholder stop us getting Right to Manage?
Only on narrow procedural or qualification grounds. The freeholder cannot block RTM because they object to losing the management. If the building qualifies and the notices are valid, the right transfers.
Do we have to use a managing agent after RTM?
No. RTM gives you control of management — you decide whether to appoint a new agent, keep the existing one on better terms, or self-manage. Many small blocks self-manage with software like Proppa.