Understand each stage of a Right to Manage claim, from initial eligibility checks through to RTM company setup, statutory notices, counter-notice deadlines, acquisition date and management handover.
Check RTM EligibilityRight to Manage involves a statutory process with strict timelines and procedural requirements. Understanding each stage helps leaseholders navigate the claim successfully.
Before committing time and money to an RTM claim, leaseholders should establish whether their building qualifies. The main eligibility criteria are:
Use our free eligibility checker to assess your building quickly.
Successful RTM claims require strong leaseholder engagement and support. Before proceeding, organise meetings, gauge interest, and identify a core group willing to drive the process forward.
Consider appointing a small steering committee to coordinate communication, decision-making, and administration throughout the claim process.
An RTM company limited by guarantee must be formed at Companies House before the RTM claim begins. The company must have memorandum and articles that comply with statutory requirements.
Key requirements include:
The RTM company must be formed before the Section 78 notice is served. Defects in company formation can invalidate the entire RTM claim.
Gather information about the building's structure, ownership, and lease arrangements. This includes Land Registry title documents, lease details for all flats, and freeholder information.
Accurate building and ownership information is essential for preparing correct statutory notices.
The Section 78 Notice invites all qualifying tenants to become members of the RTM company. The notice must be served on every qualifying tenant in the building at least 14 days before the Section 79 Claim Notice.
The notice must include details of the RTM company, the building, and instructions on how to join as a member.
There must be at least 14 days between service of the Section 78 notice and service of the Section 79 Claim Notice.
The Section 79 Claim Notice is the formal claim for Right to Manage. It must be served on the freeholder and certain other parties, including intermediate landlords and managing agents.
The notice must specify a proposed acquisition date (the date the RTM company will take over management) which must be at least 3 months from the date of the notice.
The Section 79 notice must identify the building correctly, list participating members accurately, include the acquisition date, and be served on all relevant parties. Defective notices give the freeholder grounds to object.
After the Section 79 Claim Notice is served, the freeholder has 1 month to serve a counter-notice if they wish to contest the RTM claim.
If the freeholder serves a counter-notice objecting to the claim, the RTM company must apply to the First-tier Tribunal within 2 months to continue the claim.
If no counter-notice is served within the 1-month period, the RTM claim proceeds to the acquisition date without tribunal involvement.
If the freeholder has served a counter-notice objecting to the RTM claim, the RTM company must apply to the First-tier Tribunal (Property Chamber) within 2 months of the counter-notice.
The tribunal will determine whether the RTM claim is valid and whether the building qualifies for Right to Manage.
Tribunal proceedings typically take 3-6 months from application to final hearing, depending on complexity and availability of tribunal dates.
Each party usually bears their own costs for tribunal proceedings. However, if either party acts unreasonably, the tribunal may order cost contributions.
The tribunal will issue a decision determining whether the RTM claim is valid. If the tribunal finds in favour of the RTM company, it will specify the acquisition date.
If the tribunal dismisses the RTM claim, leaseholders may appeal the decision or address the issues identified and submit a new claim in the future.
On the acquisition date, the RTM company becomes responsible for managing the building, including services, repairs, maintenance, insurance, and service charge collection (where the lease permits). The landlord retains the freehold and other non-management rights.
The management handover involves the transfer of information, records, and responsibilities from the outgoing managing party to the RTM company. This is a practical and administrative process that can sometimes be contentious if the landlord or previous managing agent is uncooperative.
Key handover items include:
The RTM company should also arrange for the appointment of a managing agent if the leaseholders do not intend to self-manage. The managing agent will handle day-to-day administration, service charge collection, contractor coordination, and compliance obligations.
Right to Manage is not just paperwork—leaseholders must plan how the building will be managed. The RTM company becomes responsible for maintenance, insurance, budgets, and regulatory compliance.
The RTM company must manage insurance, contractors, budgets, compliance certificates (gas safety, fire assessments, electrical testing), and leaseholder communication. Professional managing agent support is often advisable.
Use our free RTM eligibility checker to understand whether your building qualifies and get an indicative cost estimate.
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