Leaseholders in blocks of flats often have to pay service charges to the freeholder, contributing to the repair, maintenance and insurance of the building, but they often have little control over how these funds are allocated. In March 2025, significant changes to the Right to Manage (RTM) enacted under the Leasehold and Freehold Reform Act 2024 came into force. These reforms offered a more accessible statutory route for leaseholders to take control of the management of their building, without the cost or complexity of purchasing the freehold.

Baker Law
Katie Waygood, Partner & Acting Head of Property (Baker Law )

What is the Right to Manage?

The Right to Manage allows qualifying leaseholders to assume the management functions of the building from their landlord. This includes responsibility for:

  • Repairs and maintenance.
  • Service charge collection and budgeting.
  • Building insurance.
  • Appointment and supervision of managing agents.

To exercise this right, qualifying leaseholders form a Right to Manage company to take over the management functions from the freeholder. Ownership of the freehold does not change, and the landlord remains the freeholder, but their management role is removed and transferred to an RTM company.

What are the advantages of RTM?

  • Greater control over service charges.
  • Autonomy without the expense of buying the freehold.
  • No need to prove mismanagement.
  • Landlord consent is not required.

If you would like advice regarding Right to Manage, please give Baker Law a call on 01252 733770, or send us an email at [email protected] and we can provide you with a quote for our services.