How do we take over the management of our block of flats?

Short answer

Through Right to Manage: set up an RTM company and serve a claim notice. The block needs at least two flats, two-thirds held on long leases and no more than 25% non-residential floor space, and at least half the qualifying leaseholders must join. No premium is paid to the freeholder.

Right to Manage, created by the Commonhold and Leasehold Reform Act 2002, lets leaseholders take over the management of their block without buying the freehold and without proving the freeholder is at fault. It is the usual answer to poor maintenance, inflated service charges and an unresponsive managing agent.

Do you qualify?

At least two flats in the building
At least two-thirds of the flats held on long leases — originally granted for more than 21 years
No more than 25% of the floor space in non-residential use (rising to 50% under the Leasehold and Freehold Reform Act 2024 once commenced)
At least half of the qualifying leaseholders as members of the RTM company

The steps

Form an RTM company — a limited company set up for the purpose, with leaseholders as members and directors — then give notice inviting all qualifying leaseholders to participate, and serve the claim notice on the freeholder. Management transfers on the acquisition date set out in that notice. If the freeholder cannot be traced, apply to the county court for a vesting order instead.

The freeholder cannot resist on commercial grounds. They can only object where a statutory ground applies — the building is not eligible, or the claim is procedurally defective — which is why most contested cases end in the leaseholders’ favour at tribunal. Get the paperwork right, because technical errors are the usual reason claims fail.

What changes, and what does not

The RTM company collects service charges, appoints contractors or a managing agent, handles disputes and manages the whole estate the leases cover — common parts, gardens, parking and outbuildings. The freeholder keeps ownership of the freehold and continues to receive ground rent, losing only the management role and its margins.

With control comes responsibility: the company must comply with the duties of a manager under the Landlord and Tenant Act 1985, including proper accounting, Section 20 consultation on major works, and insurance. Directors are volunteers, so agree early who does what and budget for professional support. RTM can be reversed by special resolution, though that is rare. It is also distinct from collective enfranchisement, which buys the freehold outright and does require a premium.

Read the full guide: Right to Manage: Taking Control of Your Block Without Buying the FreeholdCovers eligibility, the process, deadlines, and next steps in depth.

Related guides

Right to Manage: Taking Control of Your Block Without Buying the Freehold

If your block of flats has a freeholder or managing agent who is failing — poor maintenance, inflated service charges, slow response — the Right to Manage (RTM) lets you take over without buying the freehold. The Commonhold and Leasehold Reform Act 2002 created this right; the 2024 Act expands it. This guide explains who qualifies, how to set up an RTM company, and what changes once you control the block.

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