Right to Manage FAQs

Question 1

What does leasehold mean?

Accepted Answer

Leasehold means you own your property for a fixed term set out in your lease, but not the land or building it sits in: those are owned by the freeholder. When the lease expires, ownership of the property reverts to the freeholder, which is why short leases are a problem. Most flats in England and Wales are sold as leasehold. Guide: https://www.righttomanage.com/resources/leasehold-vs-freehold

Question 2

What happens when a leasehold expires?

Accepted Answer

When a lease expires, the property technically reverts to the freeholder, so you would lose your home. In practice, most leaseholders extend their lease before it expires. You have a statutory right to extend your lease by 90 years under the Leasehold Reform Housing and Urban Development Act 1993, subject to eligibility and formal notices you must serve (rules also changed under recent reforms, including the Leasehold and Freehold Reform Act 2024). The cost of extending increases significantly once the lease drops below 80 years. Calculator: https://www.righttomanage.com/resources/lease-extension-calculator

Question 3

Is leasehold bad?

Accepted Answer

Leasehold is not inherently bad: it is simply a form of ownership that comes with a landlord relationship attached. The problems arise when freeholders or managing agents act in ways that are not in leaseholders' best interests: charging unreasonable service charges, being unresponsive to maintenance issues, or lacking transparency about how money is spent. The Right to Manage exists specifically to address the management problem without requiring leaseholders to buy the freehold. Reforms since 2022 have also significantly strengthened leaseholder protections.

Question 4

Is freehold better than leasehold?

Accepted Answer

Freehold gives you outright ownership with no landlord, no ground rent, and no service charges to a third party, so in principle yes, it is more straightforward. However for most flat owners in England and Wales, freehold is not directly available. The practical alternatives are collective enfranchisement (buying the freehold collectively with other leaseholders) or the Right to Manage (taking over management without buying the freehold). RTM gives many of the practical benefits of freehold control at a fraction of the cost and complexity.

Question 5

What is a service charge?

Accepted Answer

A service charge is an annual payment made by leaseholders toward the cost of maintaining and insuring the building and shared areas: things like cleaning, repairs, insurance, and management fees. The freeholder or managing agent sets the budget and collects the charges. After Right to Manage, the RTM company takes over this responsibility, giving leaseholders direct control over what is spent and how. Leaseholders have the right to challenge service charges they believe are unreasonable at the First-tier Tribunal.

Question 6

Is service charge mandatory?

Accepted Answer

Whether you have to pay service charges depends on the terms of your lease. Most long leases include an obligation to pay service charges, and if your lease says you must pay them, you are legally required to do so. However leaseholders have the right to challenge charges they believe are unreasonable. You can apply to the First-tier Tribunal (Property Chamber) to determine whether a service charge is payable and whether the amount is reasonable.

Question 7

What is a reasonable increase in service charge?

Accepted Answer

There is no statutory cap on service charge increases. Whether an increase is reasonable depends on the actual costs incurred. Leaseholders have the right to request a summary of relevant costs and inspect the underlying accounts and receipts. If you believe charges are unreasonable you can apply to the First-tier Tribunal. One of the key benefits of Right to Manage is that leaseholders take direct control of the service charge budget, removing the opacity that often surrounds freeholder-managed accounts.

Question 8

What is a section 20 notice?

Accepted Answer

A section 20 notice is part of a statutory consultation process that landlords must follow before carrying out qualifying works costing more than £250 per leaseholder, or entering into long-term qualifying agreements. The process gives leaseholders the opportunity to comment on the proposed works and nominate contractors. Failure to follow section 20 consultation correctly limits how much the landlord can recover through service charges to £250 per leaseholder for that project.

Question 9

What is the Right to Manage?

Accepted Answer

Right to Manage is a statutory process that lets qualifying leaseholders form a dedicated company (the RTM company), follow set notices on the landlord, and take over the management functions for the building without buying the freehold. It sits in the Commonhold and Leasehold Reform Act 2002 (with later amendments). After transfer, many groups self-manage with transparent budgets and clear records.

Question 10

What are the pros and cons of the Right to Manage?

Accepted Answer

The main advantage is control — leaseholders can choose their own managing agent, set service charge budgets, and oversee maintenance directly. The process is also no-fault, meaning you don't need to prove the current management is failing. The main challenges are that it requires organising enough neighbours to participate, involves a formal legal process with fixed steps, and the RTM company takes on real responsibilities once management transfers. It suits buildings where leaseholders are motivated and willing to stay involved long-term.

Question 11

Can the landlord refuse RTM if we qualify?

Accepted Answer

If you meet the statutory conditions and follow the process correctly, the landlord cannot simply block RTM because they disagree — but there are rules about disputes and exceptions. This is general information only; seek advice for your case.

Question 12

Does RTM mean we own the freehold?

Accepted Answer

No. RTM is about who manages the building. The freehold can remain with the landlord unless you pursue a separate process (such as collective purchase).

Question 13

Can we replace our managing agent without buying the freehold?

Accepted Answer

Yes — this is exactly what the Right to Manage is designed for. If your building qualifies, you can transfer management away from the current agent to an RTM company formed by leaseholders. You do not need to prove the agent has done anything wrong, and the freeholder cannot block the process if you meet the statutory criteria and follow the correct steps.

Question 14

What is an RTM claim?

Accepted Answer

An RTM claim is the formal process by which leaseholders assert their Right to Manage. It involves serving a claim notice on the landlord in the way the legislation requires. The landlord then has a set period to respond. If the conditions are met and the process is followed correctly, management transfers to the RTM company on the statutory acquisition date.

Question 15

What is an RTM company and who runs it?

Accepted Answer

An RTM company is a private limited company that leaseholders form specifically to exercise the Right to Manage. Once management transfers, the RTM company takes on responsibility for services like maintenance, insurance and service charges. It is run by its members — the participating leaseholders — who can appoint a managing agent to handle day-to-day tasks if they prefer not to self-manage.

Question 16

How long does RTM take?

Accepted Answer

Many groups find the process takes roughly four to six months from getting organised to transfer, but it varies. Notices, responses and any disputes can change the timeline.

Question 17

Do we need a solicitor?

Accepted Answer

Some groups use solicitors or specialists; others manage more of the paperwork themselves. What is right depends on your building, confidence with legal documents, and risk tolerance. We do not recommend or endorse any particular firm.

Question 18

What if some neighbours do not want to join?

Accepted Answer

The law sets minimum participation levels. If you cannot meet them, you may not be able to proceed until more leaseholders participate or the situation changes.

Question 19

Can the Right to Manage be challenged or reversed?

Accepted Answer

A landlord can serve a counter-notice disputing the claim if they believe the qualifying conditions are not met. If the dispute cannot be resolved, it may go to a tribunal. Since 3 March 2025, reforms under the Leasehold and Freehold Reform Act 2024 mean the RTM company is no longer liable for the landlord's legal costs of the RTM process by default — each side generally bears its own costs, with narrow exceptions (for example if the claim is withdrawn or a tribunal orders otherwise). The old fear that leaseholders could be left footing the freeholder's bill for the process has largely gone. Once RTM has transferred, it can in some circumstances be brought to an end — for example if the RTM company fails to comply with its obligations. This is general information only; seek professional advice if you are facing a dispute.

Question 20

How much does a lease extension cost?

Accepted Answer

The cost of extending a lease depends on your property value, the ground rent, and crucially how many years are left on your lease. Below 80 years, marriage value applies: you must typically share part of the uplift in your property value with the freeholder through the statutory formula, which can add thousands to the premium. Calculator: https://www.righttomanage.com/resources/lease-extension-calculator. For a professional valuation you should instruct a RICS-registered surveyor.

Question 21

How long does a lease extension take?

Accepted Answer

The formal statutory lease extension process typically takes three to six months from serving the initial notice to completion. The timeline can extend if the freeholder serves a counter-notice disputing the premium, in which case the matter may go to the First-tier Tribunal. Many leaseholders also negotiate an informal extension directly with their freeholder, which can be faster but does not carry the same legal protections.

Question 22

Is 80 years a short lease?

Accepted Answer

In lease extension jargon, slipping below roughly 80 years remaining is the point where marriage value enters the statutory formula that sets the compensation due to many freeholders, so costs can jump noticeably compared with a longer term. Buyers and lenders normally treat materially shorter leases as higher risk financing because of renewal cost and value effects, which is why people often extend well before approaching that band.

Question 23

Is this website legal advice?

Accepted Answer

No. RightToManage.com is an educational resource. For advice on your specific leases or building, speak to a qualified professional. See https://www.righttomanage.com/disclaimer

Frequently asked questions

Frequently asked questions