Right to Manage v Buying the Freehold

RTM vs Buying the Freehold

Right to Manage and collective enfranchisement (buying the freehold) are both leasehold reform rights. They serve different purposes.

Right to Manage: Leaseholders take over management functions without buying the freehold. The freeholder retains ownership but loses management control.

Collective enfranchisement: Leaseholders buy the freehold and own the building. This gives both ownership and management control.

Cost Comparison

RTM is usually significantly cheaper than buying the freehold because leaseholders are not paying for the freehold interest.

RTM costs typically range from £99-£300 per leaseholder depending on building size and complexity.

Buying the freehold requires paying the freeholder the market value of the freehold plus professional costs. This can be £5,000-£50,000+ depending on the building.

Speed and Complexity

RTM is usually faster. The statutory process takes 3-4 months if unopposed.

Buying the freehold involves valuation disputes, negotiations and often takes 12-18 months.

When RTM May Be Better

• Leaseholders want management control but cannot afford to buy the freehold
• Speed is important
• The freeholder's interest has significant value

When Buying the Freehold May Be Better

• Leaseholders want full ownership
• Lease extensions are needed (easier when you own the freehold)
• The freehold has low value and is affordable