Right to Manage Eligibility

Does My Building Qualify for Right to Manage?

Right to Manage eligibility is set out in the Commonhold and Leasehold Reform Act 2002. Your building must meet five core criteria:

1. Self-contained building or self-contained part
2. At least two flats
3. At least two-thirds qualifying tenants
4. At least 50% leaseholder participation
5. No more than 50% commercial or non-residential space

If your building fails any of these tests, the RTM claim may be invalid. Freeholders commonly object on eligibility grounds, so checking these carefully before serving notices is essential.

Self-Contained Building or Self-Contained Part

The building must be structurally detached or, if attached to other premises, the relevant part must be a vertical division (such as one block in a terrace where each block has its own entrance and services).

Common issues:

• Converted houses: A house converted into flats may qualify if it is structurally self-contained, but buildings with shared party walls or services with neighbouring properties may not.
• Attached buildings: Terraces, semi-detached buildings or buildings that share structural elements with commercial premises may fail the self-contained test.
• Estate developments: Blocks on large estates may share services, amenities or common areas with other blocks. This can affect whether each block is self-contained.

If the building structure is unclear, obtain professional advice before serving RTM notices.

At Least Two Flats

The building must contain at least two flats held by qualifying tenants. A flat is defined as separate living accommodation.

This threshold is usually straightforward, but issues can arise where:

• Flats have been merged or subdivided
• Flat numbers on leases do not match physical occupation
• Some units are held on leases shorter than 21 years

Count only flats held by qualifying tenants. Business units, short-term lets and assured shorthold tenancies do not count.

Two-Thirds Qualifying Tenants

At least two-thirds of the total flats in the building must be held by qualifying tenants.

What is a qualifying tenant?

A qualifying tenant is a long leaseholder with a lease originally granted for more than 21 years. This includes:

• Leaseholders who purchased their flats with long leases
• Right to Buy leaseholders
• Shared ownership leaseholders (if the lease was granted for over 21 years)

Not qualifying tenants:

• Short-term tenants with leases of 21 years or less
• Assured shorthold tenants (renters)
• Business tenants
• Freeholders who own their flats

Calculation example:

A building has 15 flats. 12 are held by long leaseholders. 3 are held on short business leases. The qualifying tenant proportion is 12/15 = 80%. This exceeds two-thirds, so the building passes this test.

If the building has 15 flats but only 9 are held by long leaseholders, the proportion is 9/15 = 60%. This is below two-thirds and the building does not qualify for RTM.

At Least 50% Participation

At least half of the qualifying tenants must support the RTM claim by becoming members of the RTM company.

Calculation example:

A building has 10 qualifying tenants. At least 5 must become RTM company members and support the claim. If only 4 support it, the claim is invalid.

A building has 21 qualifying tenants. At least 11 must support the claim.

You cannot serve an RTM claim notice with the minimum number of participants and then recruit more later. The claim notice must state who the RTM company members are. Changing membership after serving the notice may cause problems if the freeholder objects.

No More Than 50% Commercial Space

If the building contains commercial or non-residential space (such as shops, offices, restaurants, gyms or storage units), the total non-residential floor area must not exceed 50% of the building's total internal floor area.

This is the 50% commercial space threshold. Breaching it disqualifies the building from RTM.

How to assess:

• Calculate total internal floor area of the building (including residential and non-residential)
• Calculate total non-residential floor area
• If non-residential exceeds 50%, RTM does not apply

Common areas (hallways, staircases, plant rooms) are not counted as residential or non-residential for this test. Only self-contained units count.

See our dedicated guide: Right to Manage Mixed-Use Buildings.

Resident Landlord Exception

Buildings with four or fewer flats where the landlord occupies one of the flats as their only or principal home are excluded from Right to Manage.

This resident landlord exception is narrow:

• Applies only to buildings with four or fewer flats in total
• The landlord must occupy one flat as their only or principal home
• The landlord must be the freeholder or an intermediate landlord with sufficient interest

If the building has five or more flats, the resident landlord exception does not apply even if the landlord lives in one flat.

See our dedicated guide: Right to Manage Small Blocks.

Common Eligibility Mistakes

RTM claims fail most often due to eligibility errors. Common mistakes include:

If the freeholder issues a counter-notice objecting on eligibility grounds and you cannot prove eligibility, the RTM claim fails and you may have to apply to the First-tier Tribunal to continue. This adds cost, delay and risk.