Right to Manage

The Right to Manage Procedure

  • The Commonhold and Leasehold Reform 2002 Act specifies in some detail how a Right to Manage Company should be set up. It also provides the specific wording of the Articles and Memorandum required to incorporate the Company. Nevertheless, establishing an RTM Company is a cumbersome task and unless you have experience of Company Incorporation, it is best left to specialists.

Basic Procedure

  1. Set up a Right to Manage Company.
  2. Serve the Leaseholders who are NOT already members of the Company with a Notice Inviting Participation. This is a standard document available from Her Majesty's Stationary Office (HMSO).
  3. Serve the Freeholder with a Notice of Claim and register it with the Land Registry.
  4. Receive Freeholder's Counter- Notice, either admitting that the RTM Company is entitled to acquire the rights to manage or contending its entitlement; giving reasons to support the allegation.
  5. If there are no objections, the RTM takes over management of the property 3 MONTHS after.
  6. If there are objections, the RTM company applies to the First-tier Tribunal (Property Chamber) and takes over the management three months after the Tribunal's determination.

What happens if the Freeholder objects to Right to Manage?

  • You will be required to apply to the First-tier Tribunal (Property Chamber) (under the name of your RTM company) for a determination on the issue. The Freeholder will not be able to recover any costs unless the Tribunal finds against the RTM Company. Costs are limited to the application and hearing fee.