Glossary · UK
What is Right to Manage (RTM)?
Statutory right of leaseholders to take over building management from freeholder.
Full Definition
Right to Manage (RTM) lets leaseholders in a block collectively take over management of their building from the freeholder without needing freeholder consent and without buying the freehold. Introduced by Commonhold and Leasehold Reform Act 2002. Requirements: at least 2 flats, at least half of leaseholders must support, building must be predominantly residential. Form an RTM company (Ltd by guarantee), serve Section 79 notice, take over after 3 months. Useful when freeholder is unresponsive, charging excessive service fees, or refusing alterations.
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