Right to Manage Mixed-Use Buildings

Can Mixed-Use Buildings Claim RTM?

Yes. Mixed-use buildings with shops, offices, cafes or other commercial units can qualify for Right to Manage if the non-residential space does not exceed 50% of the building's total internal floor area.

The 50% Commercial Threshold

Calculate total internal floor area of the building (residential and non-residential combined). Then calculate total non-residential floor area.

If non-residential exceeds 50%, the building does not qualify for RTM.

Example: A building has 1,000m² total internal floor area. 450m² is residential, 550m² is commercial. Commercial space is 55%, so RTM does not apply.

What Counts as Non-Residential?

• Shops and retail units
• Offices
• Cafes and restaurants
• Gyms and leisure facilities
• Storage units used for business

Common areas (hallways, staircases, plant rooms) do not count as residential or non-residential for this test.

Why Guessing Is Risky

Freeholders commonly object to RTM claims for mixed-use buildings on commercial space grounds. If the leaseholders have not assessed floor area properly, the claim may fail.

Obtain building plans or surveyor input if the commercial threshold is unclear.