The right to manage
The right to manage

The following Property guidance note provides comprehensive and up to date legal information covering:

  • The right to manage
  • Qualifying premises
  • Qualifying tenant
  • RTM company
  • Procedure
  • Extent of the right
  • Anti avoidance
  • Cessation

Under Part 2 of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002), long leaseholders of flats in mainly residential buildings (subject to certain exceptions) have the right to take over the management of the building:

  1. irrespective of fault on the part of the landlord

  2. without having to pay compensation

This right to manage can only be exercised through membership of a right to manage (RTM) company. Once the process of claiming the right to manage has been initiated (see Procedure below), it can be protected by registering a notice against the landlord’s title.

Qualifying premises

The right to manage applies to premises if:

  1. they consist of a self-contained building or part of a building, with or without appurtenant property

  2. they contain two or more flats held by qualifying tenants, and

  3. the total number of flats held by qualifying tenants is not less than two-thirds of the total number of flats

Self-contained

A self-contained building is one that is structurally detached. A part of a building is self-contained if:

  1. it is a vertical division of the building

  2. the structure of the building could be redeveloped independently of the rest of the building, and

  3. the services are provided independently to those for the occupiers of the rest of the building or could be without significantly interrupting the provision of services to the occupiers