The RTM Company
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RTM Process

right to manage process

Qualification

To qualify, your building must meet the following conditions;


  • At least two-thirds of the flats in the building must be let to "qualifying tenants". A "qualifying tenant" is a leaseholder  who holds a lease that was originally granted for more than 21 years.
  • If there is a commercial element to the building it must not exceed 25% of the total floor area (excluding communal areas).
  • At least 50% of owners must support the right to manage.


Get in touch to check if your building qualifies and how we can help reach out to your fellow owners.


Get in Touch

Company Formation

We will form the RTM company which is a company limited by guarantee. 


Its a non-profit company and the vehicle which allows you to exercise your right to manage. At least one owner will act as a director, each member has an equal vote, and their liability is limited to £1 in the event the company was dissolved.

Notice Inviting Participation

As soon as at least 50% of owners are in support we will serve a notice inviting participation. This notice is served on all qualifying leaseholders who are not, at the time of service, already members of the RTM company and it invites them to participate within 14 days.

Notice of Claim

The right to manage is exercised by serving a notice of claim on the landlord. 


We will serve notice on the landlord and a copy to each qualifying leaseholder. The landlord has 1 month to admit the RTM or serve a counter notice. A counter notice can only be served on the basis the building doesn't qualify. 


If the landlord admits the RTM or doesn't serve a counter notice within 1 month, the claim has been successful and you acquire the right to manage your building.


If the landlord serves a counter notice alleging the building doesn't qualify, an application may be made to the first tier property tribunal (FTT) if necessary. The FTT will determine if the RTM qualifies and acquires the right to manage.

 

RTM Acquisition Date

You acquire the right to manage if the landlord has either admitted the RTM or has not served a counter notice. The acquisition date is 4 months from the date of the notice of claim.

Landlords Costs

The landlord can recover their “fair and reasonable” legal costs in dealing with the right to manage claim. Often they don't, but if they do, their costs are around £500-£1,000 based upon our experience.

Copyright © 2020 Crossfield Property Services Limited T/A The RTM Company - All Rights Reserved.

Company number 12418065

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