LEASEHOLDS AND SACKING THE MANAGEMENT COMPANY – WHAT YOU NEED TO KNOW ABOUT RTM
I started looking seriously into exercising the Right to Manage (RTM)
- a legal route that gives leaseholders the power to take over the management of their own building.
Leasehold properties can be full of surprises. And not the good kind.
In my experience, Management Companies are often more interested in issuing payment demands than actually looking after the building.
Costs are inflated. Repairs are delayed. And sometimes the work isn’t even done, or done badly.
Here’s one I came across recently:
A management company sent leaseholders a demand for urgent repairs, backed by a “survey” done in 2022.
Turns out, the company that did the survey - ‘Y Survey Ltd’ - was already dissolved.
Even better? The Director of that now-dissolved survey firm is also a Director of the Management Company demanding the money.
You couldn’t make it up.
In another case, a Management Company derailed one of my sales by playing games during conveyancing. The buyer pulled out.
That was the final straw.
I started looking seriously into exercising the Right to Manage (RTM), a legal route that gives leaseholders the power to take over the management of their building.
If you’re a leaseholder, this is worth understanding. Especially if you want more control, better value, and fewer headaches.
Here’s how the RTM process works:
1. Check if the building qualifies
It must be self-contained with at least two flats
At least two-thirds of the flats must have long leases (over 21 years)
Non-residential areas must be under 25% of the building
2. Form a Right to Manage company
This is a special type of company set up for this exact purpose.
You’ll need at least 50% of the leaseholders to join. If there are only two flats, both need to take part.
3. Invite all leaseholders to join
This is a formal step—called the “Notice Inviting Participation.”
It must be served at least 14 days before contacting the landlord.
4. Serve the Claim Notice to the landlord
This informs them that the RTM company intends to take over the management.
It includes company details, leaseholder names, and the proposed handover.
5. Wait for the landlord’s response
They have one month to reply. They can accept or dispute the claim.
6. Handle disputes (if any)
If they object, the RTM company can apply to the First-tier Tribunal to resolve it.
If the Tribunal rules in your favour, you move forward.
7. Serve the Notice of Acquisition
This confirms the official handover date.
8. Take over management
On that date, the landlord must pass over all relevant documents, info, and money.
From that point, you’re in charge.
9. Ongoing responsibilities
The RTM company becomes responsible for running the building in line with the lease terms and all relevant legal requirements.
Final thoughts
If you’re considering buying a leasehold property, dig deeper during conveyancing.
Ask your solicitor for the full Management Pack—not just their summary.
Make sure you see the paperwork yourself before anything is agreed.
I speak to my solicitors weekly during every deal.
I ask extra questions, double-check the documents, and if I see anything off, I renegotiate the terms with the seller.
Because in a leasehold, things that look small can cause big problems later.
If you’re thinking about RTM or want to speak to someone who can help with the legal side, I’m happy to point you in the right direction.
This isn’t legal advice. It’s just what I’ve learned from doing the work, and wanting more control over my investments.