Right to manage (RTM)

  • Are you frustrated by the way your block of flats is being run?
  • Do you need to wrestle control from a bad or absentee landlord?
  • Would you like to take overall responsibility for the management of your block but still appoint professional managers to run it for you?
  • Since September 2003, the Commonhold and Leasehold Reform Act 2002 provides a statutory right for leaseholders to force the transfer of the landlord's management functions to a special ‘right to manage company’ without the need to show the landlord is at fault or pay any compensation for exercising the right.
  • Oyster Estates are able to guide you through the process and set up a RTM for you.
  • Once you have taken over, the management will bring responsibilities and compliance with Government-approved codes of management practice, which Oyster Estates would be pleased to manage for you.

The criteria for you to exercise your Right to Manage:

  1. The right to manage may only be exercised by a right to manage company.
  2. The building must be self-contained and include at least two flats.
  3. At least 50% of the flat-owners must want to go through the process.
  4. At least 2/3rds of the flat-owners must have been granted original leases longer than 21 years.
  5. No more than 25% of the block may be used for non-residential use excluding car parks and common areas connected with the flats.

The Right to Manage Company and how Oyster Estates can help

The relationship between freeholder, leaseholder and managing agent when the property is run by an RTM

Right To Manage Company

The diagram above shows the relationship between the freeholder, leaseholders and managing agent, once you have exercised your right to manage the property. The triangular relationship between the three parties is defined by a number of legal documents: The relationship between the freeholder and the leaseholders is defined in the leases; the connection between the RTM (right to manage) company and the leaseholders is driven by company law and is limited by guarantee; and the relationship between the RTM and its managing agent is spelt out in the management agreement contract between the two parties.

Oyster Estates will guide you through setting up a company limited by guarantee, obtain your company registration from Companies House including the Certificate of Incorporation, Company Registers, Company Seal and copies of the Memorandum and Articles of Association. Once the formation of the RTM company is completed we will:

  • Work with you to run the company and also manage the block
  • Keep you informed of legal requirements
  • Agree maintenance budgets including reserve funds (if allowed for within the lease)
  • Deal with contractors and surveyors when necessary
  • Keep you up to date with company, housing and health and safety issues.
  • Complete annual company returns to Companies House
  • Attend AGMs and other meetings as agreed in our terms