The Right to Mage (RTM) is a legal right allowing leaseholders to take charge of the management and maintenance of their block from the freeholder (landlord) if certain criteria can be met. The RTM is exercised by an RTM company. An RTM company is a private company limited by guarantee and its articles of association must set out that one of its objects, is the acquisition and exercise of RTM for the specific property.

There is a defined legal process to follow to obtain an RTM which can be simple with the right help and at Sirius Property Services Ltd we can guide our clients through this process. It is important that the right steps are taken and the appropriate notices served so working with an organisation that understands the process can ensure that you complete the process properly and hence avoid later challenges. Certain criteria need to be met to obtain an RTM (see below).  If the criteria is not met, or the process is not followed properly the freeholder can submit a counter notice against the RTM process.

The freeholder also has the right to become a member of the RTM company after it has exercised it RTM as long as they retain an interest in the property. The freeholder gets a single vote in any resolutions the same as any other member (leaseholder) of the company.  Once the RTM company is formed and assuming the criteria is met  it must serve the required legal notices, including the appropriate  notice on the freeholder stating that the leaseholders intend to exercise their right to manage. So long as the criteria are met, there are no legal grounds for the freeholder to object and the RTM is determined 1 month later and the RTM can then take control after a further 3 months. The RTM Company can then manging the building directly or they may engage a professional Managing Agent, such as Sirius Property Services Ltd to do this for them.

An RTM claim notice is not registerable at the Land Registry. However, where a right to manage (RTM) company has acquired the right to manage, it may apply to the Land registry for an entry to be made in the proprietorship register of the affected title (Rule 79A Land Registration Rules 2003). This means anyone searching the title in respect of purchased of freehold or leasehold we see that an RTM is in operation in respect of the property.

The RTM Company will them become responsible for thing such as:

• collecting and managing the service charge
• upkeep of communal areas (such as communal hallways and stairs)
• upkeep of the structure of the building (such as the roof)
• dealing with complaints about the building from other leaseholders

Criteria to qualify for RTM:

• the building must be made up of flats (houses don’t qualify)
• at least two-thirds of the flats in the building must be leasehold – with leases that were for more than 21 years when they were granted
• at least 75% of the building must be residential – for example, if there’s a shop in the building, it can’t take up more than 25% of the total floor area
• any number of owners can set up an RTM company – but at least half of the flats in the building must be members of the company before it can actually take over management

To discuss your requirements in respect of Right to Manage (RTM) call Sirius Property Services Ltd on 01305 548000 or email info@siriuspropertyservices.com