Right To Manage (RTM) Process & Eligibility

Claim The Right To Manage Together

The Route To Right To Manage (RTM)

Right To Manage (RTM) is a¬†prescribed route granted under the Leasehold and Commonhold Reform Act 2002 to enable¬†a group of leaseholders collectively to gain control of the management¬†of their development.¬† It is a ‘no fault’ piece of legislation, meaning that the process can be undertaken regardless of whether the current management party has acted negligently.

Right To Manage (RTM) Eligibility

Certain criteria must be met in order to successfully complete the process so before going any further here are the main points to consider:

Every participating dwelling must be an Apartment.  Houses are excluded from this legislation entirely

At least 50% of the apartment-owners must be willing to subscribe to the process

At least 2/3rds of the apartment-owners¬†must have “long leases”.¬† These are leases that are¬†greater than 21 years at the time of issue

At least 75% of the floor area of the block must be used for residential purposes

There are other less commonly encountered criteria and legal precedents that affect eligibility for RTM which Realty will be pleased to advise upon should they arise.

The Right To Manage (RTM) Prescribed Route

Once eligibility is ascertained, the set route must be followed.  If the route is not followed the existing management party can raise a counter claim and RTM will not be successful.  Generally speaking the process is not difficult as long as the prescribed timeframes and notice-wording is followed and all information utilised is accurate and diligently sourced.  The Right To Manage route is outlined here:
Contact the other leaseholders and obtain the support of at least 50% of the qualifying leaseholders
Incorporate the RTM Co which will issue the notices

Issue Section 78 notices of participation to all leaseholders

The leaseholders have 14 days to reply and at least 50% must accept

Issue Section 79 claim notice on the landlord specifying an ‘acquisition¬†date’ to acquire RTM¬†(this must be at least 3 months from the last date the landlord could serve a counter notice)

The Landlord has 28 days to serve a Section 84 counter notice if they wish to dispute the claim

If the Landlord serves counter-notice, the RTM Co has 60 days to apply to the First Tier Tribunal (FTT) for determination

If the Landlord does not serve counter-notice then the RTM Co automatically takes over the management on the acquisition date

If necessary the RTM Co can issue Section 82 & 83 notices to ensure all required management information is provided alongside access to the development

At the acquisition date, the RTM Co serves:

Section 92 notice so that all contractors know that that the Right To Manage has been acquired and contracts have ended

Section 93 notice of duty to provide information

Section 94 notice requiring the landlord to transfer the net balance of any service charges

Realty Can Help!

Realty can assist with the process, however we can also recommend selected partners who are experts in administering the RTM process and who have successfully undertaken some of the largest and most complex claims in the UK.  With Realty, the process need not be costly or onerous either.  Our aim is to manage your development and as such we offer a range packages to keep RTM affordable, including the reimbursement of some RTM fees from our first year’s management fee.  This effectively means that undertaking RTM is easy and can even be free of charge.

Interested? Get in touch