A RTM company gives leaseholders the statutory right to take over the management of their property from the landlord by setting up a special company - a right to manage company.
What is a Right to Manage Company and do I qualify?
A Right to Manage Company (RTM Company) is a private company limited by guarantee with a prescribed constitution to manage premises.
Provided that tenants meet the qualifying criteria and the correct procedure is followed, your landlord has very limited scope to object or to hold up the process.
The Commonhold and Leasehold Reform Act 2002 (“the Act”) sets out the conditions that must be met for a building or lease to fall within the scope of RTM.
Qualifying Buildings: Premises that consist of:
- a self-contained building, with or without appurtenant property;
- containing two or more flats held by qualifying tenants;
- where the total number of flats held by such tenants is not less than two-thirds of the total number of flats contained in the premises.
The Act also sets out which tenants of flats are entitled to establish and join the RTM Company, known as qualifying tenants.
- A person who is a Tenant of a flat under a long lease (a lease of more than 21 years)
- A flat is defined as a separate set of premises which:
- forms part of a building;
- is constructed or adapted for use for the purposes of a dwelling; and
- either the whole or a material part of it lies above or below some other part of the building
The Law Commission published its report on 21 July 2020 on leasehold reform. It included changes to the Right to Mange process, making it cheaper and simpler, available to more leaseholders in a wider variety of buildings.
How long does the right to manage process take?
It should only take between 6 to 8 months but can take longer. It all depends on how cooperative the participating tenants, the incumbent managing agent and/or your landlord are. Our specialist team are here to help you through the process.
If you would like to discuss any of the above or your individual rights as a leaseholder, please contact Bukola Obadun-Craigs email@example.com