What is Right to Manage (RTM)?
RTM was introduced through the Commonhold and Leasehold Reform Act 2002, giving leaseholders the statutory right to take control over the management of their property from a landlord. If at least 50% of leaseholders in a block wish, they can exert this statutory right by setting up a special company – a Right to Manage Company.
“I went straight to the pub for a G&T when I first heard what was involved, but we had a great solicitor who was experienced and explained everything in an easy to understand way, and things worked out fine”.
“The most important thing about the procedure is to use a solicitor who is experienced”.
“It has added real value to my flat and more important, we as flat-owners now have control over our own building”.
Urban Owners has helped thousands of leaseholders to acquire RTM and all have benefited from:
- Greater control – with RTM there is no landlord making decisions on the behalf of leaseholders about how a property is managed.
- Reduction in Service Charge costs – because of this control, leaseholders are able to choose which contractors to use and what the specifications of works and services should be.
For Urban Owners clients, this result means an average annual saving of 30+% (see table)
Average savings per flat per year
||Annual Average saving (%)
|Repairs & Maintenance
*Legal services, bank & accountancy charges, utilities, security and lifts
How much does an RTM cost?
The fee payable to us at the start is just £30 + VAT per flat (so long as the total amount payable is at least £450+VAT). The only other potential further charge from us is if there is a Tribunal for a judgement – this is very rare (affecting less than 2% of Urban Owners RTM clients).
You will have to pay at the end the Landlord’s reasonable costs. This ranges, but from our past cases, this averages approximately £25-£75 per flat, but can be either side of this range.
On average, leaseholders who have used Urban Owners pay less than £80 each (or £973 per block of flats) to get RTM. Given that Urban Owners then helps those leaseholders save on average £300 on service charges every year (£3,740 per block of flats), this represent a phenomenal rate of return on the investment of 384%.
|In other words, for every £1 invested in the RTM, leaseholders would gain an annual return of £3.84.|
What’s the process of acquiring an RTM?
With Urban Owners’ help, RTM is a simple, stress free process. Each of the flats wishing to acquire RTM completes Urban Owners’ short application form: which simply asks for a name, address and signature. One or more flat owners will also need to agree to become Directors of the RTM company and further information will be required by those individuals.
Once the completed forms and the fee are received, Urban Owners will start the process
What happens after the RTM?
All leaseholders who participated in the RTM will be members of the RTM company; those who didn’t participate can become members at any point. The Directors will make decisions on behalf of all the leaseholders. Typically, the first decision is whether the leaseholders want to manage the block themselves or engage a managing agent. As a managing agent, Urban Owners has put control and transparency at the heart of its services and has created flexible packages based on how much involvement leaseholders wish to have.