The Commonhold and Leaseholder Reform Act 2002 gives leaseholders the right to take over the management of the block of flats they live in. It does this by transferring the responsibilities and decision making from the landlord over to a Right to Manage (RTM) company, which can be set up by leaseholders.

You don’t need to prove there has been any mismanagement by the landlord  or get a court order to set up a RTM company, but there are some criteria the building you wish to manage must meet which you can read below.

Qualification for Right to Manage:

• The building or part of the building must contain at least 2 flats. Houses do not quality.
• At least two-thirds of the flats in the building must be owned by long leaseholders, meaning the leases must be more than 21 years when they were first granted.
• At least 75% of the building must be residential. For example, if the building contains a shop it cannot take up more than 25% of the total floor area of the building.
• The number of members of an RTM company must be equal to at least half of the total number of flats in the building.

You can read further information on Right to Manage from The Leasehold Advisory Service (also known as LEASE). Go to Right to Manage – The Leasehold Advisory Service

Please note, the information provided here is current as of now but may change under the upcoming Leasehold and Freehold Reform Act 2024 (LAFRA). For the latest updates, please check recent legislation or consult with a legal professional.