Right to Manage explained: taking control of your building

Last reviewed 16 June 2026 · Written by Max van der Heiden

Right to Manage lets the leaseholders in a block take over the management of their building from the freeholder, without buying the freehold and without having to prove the freeholder has done anything wrong. You set up a special company, serve notice, and the management functions transfer to you.

If your real frustration is a poor or expensive managing agent rather than ownership itself, Right to Manage is often the answer. It is cheaper and simpler than buying the freehold, and recent reforms have made it easier still. This guide explains how it works, who qualifies, and what it does and does not give you.

What is Right to Manage?

Right to Manage, often shortened to RTM, is a legal right for leaseholders in a block of flats to take over the day-to-day management of their building. It comes from the Commonhold and Leasehold Reform Act 2002. You form a Right to Manage company, the leaseholders become its members, and once you follow the process the management functions move from the freeholder or their agent to your company.

The defining feature is that you do not have to justify it. Unlike going to a tribunal to remove a bad manager, you do not have to prove the freeholder has failed. If your building qualifies and enough leaseholders join, the right is simply yours. For the wider picture of leasehold, see leasehold explained.

Right to Manage versus buying the freehold

People often confuse the two. Buying the freehold means you own the building, which gives the most control, ends ground rent, and lets you grant yourselves new long leases, but it costs a premium and is more involved. Right to Manage means you control the management while the freeholder still owns the building. You do not pay a premium for it, and it is quicker to achieve. The trade-off is that ground rent continues, and you do not gain the other benefits of ownership. For many blocks whose only real problem is a poor managing agent, Right to Manage is the proportionate choice.

Does your building qualify?

The building must be self-contained and contain at least two flats, and at least two-thirds of the flats must be held by qualifying leaseholders, meaning people on long leases originally granted for more than 21 years. There is a limit on commercial space, and this is where a recent change helps: since 3 March 2025 a building qualifies as long as no more than 50 per cent of its internal floor area is non-residential, up from the old 25 per cent limit. That single change brought a large number of mixed-use buildings, such as flats above shops, into scope for the first time.

You do not need to live in your flat, and there is no minimum period of ownership. Some buildings are excluded, including those with a resident landlord in a small converted house, so it is worth checking your building’s specifics early.

How many leaseholders need to take part?

At least half of the qualifying leaseholders in the building must be members of the Right to Manage company. In a block of ten qualifying flats, that means at least five leaseholders need to join. As with buying the freehold, the practical challenge is usually getting neighbours on board, so it is worth gauging support early before going to the expense of formal notices.

What does it cost?

Right to Manage is far cheaper than buying the freehold, because there is no premium to pay. You will have your own costs, mainly setting up the company and getting advice or help with the notices. There is good news here too: since 3 March 2025 the Right to Manage company is, in most cases, no longer liable for the freeholder’s costs of dealing with the claim. Previously leaseholders had to pay the freeholder’s legal costs on top of their own, which could be significant, so removing that is a meaningful saving and one of the reasons claims are expected to rise.

How the process works

In outline: you set up a Right to Manage company in the correct form and get the qualifying leaseholders to join as members; you serve a claim notice on the freeholder; the freeholder can serve a counter-notice, but only on limited grounds such as the building not qualifying, not simply because they object; and if the claim is valid, management transfers on a set date. Disputes about whether the right exists go to the First-tier Tribunal. The notices and timing are technical, so many groups use a specialist to handle the process and avoid a claim being derailed by a procedural slip.

What it gives you, and what it does not

Right to Manage transfers the management functions of the building to your company. That means responsibility for things like repairs and maintenance of the shared parts, services, and the buildings insurance, and crucially the power to choose your own managing agent or to manage the building yourselves. With that comes the service charge, which your company now sets and collects to fund the work.

It does not transfer ownership. The freeholder still owns the building, so ground rent remains payable to them, and you do not gain the right to grant yourselves new leases. If those things matter to you, buying the freehold is the route, not Right to Manage. It is also worth being realistic that taking over management is a real responsibility, so you will want some leaseholders willing to be involved in running things or in overseeing an agent.

What has changed recently

Right to Manage is one of the areas where reform has already landed rather than just being promised. From 3 March 2025 the qualifying threshold for commercial space rose from 25 to 50 per cent, bringing many more buildings into scope, and the rule making leaseholders pay the freeholder’s costs of a claim was removed in most cases. Further reforms to the wider leasehold system are still working their way through, which you can follow on our leasehold reform tracker, but the two changes above are in force now.

Frequently asked questions

Do we need to prove the freeholder has managed the building badly?

No. That is the whole point of Right to Manage. Unlike applying to a tribunal to appoint a new manager, you do not have to show any fault. If you qualify and enough leaseholders join, the right is yours regardless.

Will Right to Manage stop our ground rent?

No. Ground rent is tied to ownership of the freehold, which does not change under Right to Manage, so it remains payable. If ending ground rent is your goal, you would need to buy the freehold or extend your leases.

Can we choose our own managing agent?

Yes. Once the right is acquired, your company decides who manages the building, including appointing a new agent or managing it yourselves. For many blocks this is the main attraction.

Can the freeholder stop us?

Only by showing the building or the claim does not qualify. A freeholder cannot block a valid claim simply because they would rather keep control. Disagreements about whether the right exists are decided by the tribunal.

What to do next

Start by checking the basics: is your building self-contained, are at least two-thirds of the flats on long leases, and is the commercial element within the 50 per cent limit. Then sound out your neighbours, because you need at least half the qualifying leaseholders to join. If there is appetite, get advice on setting up the company and serving the notices correctly. And if, on reflection, you want full ownership and an end to ground rent rather than just management control, read buying your freehold instead.

This guide provides general information about Right to Manage in England and Wales. It is not legal advice, and the process is technical, so specialist help is advisable. For advice on your own situation, consult a solicitor experienced in Right to Manage, or a specialist such as the Leasehold Advisory Service (LEASE). Sources: Commonhold and Leasehold Reform Act 2002; Leasehold and Freehold Reform Act 2024 and its Commencement No. 3 Regulations (in force 3 March 2025); LEASE and GOV.UK guidance. Last reviewed [date]; reviewed whenever the law changes.