RTM Stands for ‘Right-to-Manage’. It refers to the legal right granted to leaseholders in the UK under the Commonhold and Leasehold Reform Act 2002; it’s a no fault right meaning that if certain criteria is met you can acquire the right to appoint your own managing agent or even self-manage without contest from the landlord; it also provides you the right to choose your own insurance broker and policy.
RTM claims have grown exponentially in the last 5 years as managing agents fail to cope with the growing knowledge and awareness of Leaseholders.
Choose an agent that specialise in Right to Manage applications . A Right to Manage application is actually very easy. Once 50% of the qualifying leaseholders have agreed to proceed it’s just a case of following these steps.
- Register a RTM company at Companies House for you. This can be formed within 48 hours.
- Serve a Section 78 ‘Notice of Invitation to Participate’– this invites those non participating qualifying leaseholders to participate in the claim. These leaseholders have 14 days to respond.
- Serve a Section 79 ‘Notice of Claim to Acquire’ – This is served on the current registered landlord. The landlord has 1 month to respond with a counter notice either admitting or denying the claim. The landlord only has limited reasons to deny the claim. If the claim is admitted the right to manage will be acquired approximately 3 months thereafter.
- If the Claim is admitted, Section 92, 93 and 94 Notices are then served. The current managing agent must then provide your current accounting information, formal documentation and to place any existing contractors and suppliers on notice. This information has to be provided within a reasonable period of time.
NOTE: If the landlord challenges the claim, it can take approximately 3-4 months for the First-Tier Tribunal to conclude the application.
