If you own a flat on a long lease and feel like decisions about your building are made without you, the right to manage may be the most useful legal tool you have never heard of.
It lets qualifying leaseholders take over the management of their block from the freeholder — without buying the freehold and without needing the freeholder's permission. This guide explains what it is, who can use it, and what life looks like after takeover.
What Is Right to Manage?
Right to manage (RTM) is a statutory right introduced by the Commonhold and Leasehold Reform Act 2002. It gives leaseholders in qualifying blocks the power to take over management of their building by forming a right to manage company.
Once the process is complete, the RTM company steps into the role previously held by the freeholder or their managing agent — arranging insurance, organising maintenance, collecting service charges, and keeping the building compliant. Crucially, RTM is a no-fault right. You do not need to prove the freeholder has done anything wrong.
Who Qualifies for Right to Manage?
Not every block qualifies. To be eligible, your building must contain at least two flats, with at least two thirds held on long leases. At least half of the qualifying leaseholders must participate in the RTM company. The building must be predominantly residential — no more than 25 per cent commercial floor area.
There are some exceptions. Buildings with a resident landlord in a small block may not qualify. A solicitor or RTM specialist can confirm eligibility quickly — it is worth checking before investing time in organising leaseholders.
How Right to Manage Differs From Share of Freehold
People often confuse right to manage with share of freehold. With share of freehold, leaseholders collectively buy the freehold title. With RTM, you take over management but the freeholder keeps the freehold.
RTM is generally faster and cheaper to acquire than share of freehold, because there is no purchase price for the freehold itself. But share of freehold gives broader control, including the ability to grant lease extensions on your own terms. Our share of freehold vs leasehold guide covers that comparison in more detail.
What Changes After RTM Takeover?
Once the right to manage company takes over, it assumes responsibility for everything the freeholder previously handled — buildings insurance, repairs and maintenance, the service charge account, the sinking fund, and fire safety and health and safety obligations.
Directors of the RTM company need to stay on top of these tasks. A managing agent can take the load if you want one, but most small blocks can be self-managed with the right system in place. Block management software keeps service charges, documents, and compliance work together so volunteer directors stay in control. For the legal steps, see our right to manage process guide.
How Freehold.Pro Helps
Once your RTM company has taken over, Freehold.Pro gives directors the software to manage service charges, compliance, and communications without drowning in admin.
Try Freehold.Pro free, no contract required. Get started today.