For many leaseholders in London, service charges, maintenance quality, and lack of transparency from managing agents can be major sources of frustration. Fortunately, the Right to Manage (RTM) gives leaseholders the legal power to take control of building management—without having to purchase the freehold.
Setting up an RTM company is a strategic move that allows leaseholders to manage their own property affairs while remaining within a clear legal framework. In this guide, we explore the benefits, eligibility, and step-by-step process for RTM company setup in London, with professional insight into how Fraser Bond can help leaseholders achieve smooth and successful outcomes.
Introduced under the Commonhold and Leasehold Reform Act 2002, the Right to Manage allows qualifying leaseholders to legally assume responsibility for managing their building without buying the freehold. Instead, they form a special-purpose RTM company that takes over management functions from the freeholder or their appointed agent.
Service charge collection and expenditure
Insurance procurement
Building repairs and maintenance
Contractor selection and supervision
Day-to-day building management and decision-making
Greater transparency and control over how service charges are spent
Flexibility to appoint trusted contractors and managing agents
Improved accountability and response times for maintenance
No need to buy the freehold, making it more affordable and accessible
Stronger community decision-making among residents
To exercise the Right to Manage, leaseholders must meet the following criteria:
The building must be self-contained
It must contain at least two flats
At least two-thirds of the flats must be leasehold, with leases of more than 21 years
At least 50% of the leaseholders must participate in the RTM process
The building must not be more than 25% commercial by floor area
RTM cannot be exercised on buildings where the landlord is a local authority or if the building is a house rather than a block of flats.
Create a company limited by guarantee. At this stage, Fraser Bond helps draft the memorandum and articles of association, ensuring they are compliant with RTM rules.
Before moving forward, participating leaseholders must invite all qualifying leaseholders to join the RTM company.
This formal notice is served to the freeholder, initiating the Right to Manage process. It outlines who is forming the RTM company and what the claim covers.
The freeholder has one month to respond. If they object, a tribunal may decide the outcome. If uncontested, the RTM company takes over on the specified acquisition date.
On the acquisition date, the RTM company legally assumes management duties. Fraser Bond supports the transition, ensuring all contracts, documents, and financial responsibilities are correctly transferred.
Fraser Bond offers end-to-end Right to Manage support, making the process clear, compliant, and efficient. Our services include:
Legal setup of the RTM company and company registration
Drafting and serving all statutory notices
Managing communications with the freeholder
Negotiating with managing agents and contractors
Providing ongoing professional property management if required
Whether you want complete self-management or professional support post-acquisition, Fraser Bond ensures your RTM journey is smooth and fully compliant with UK law.
Fraser Bond has helped leaseholders across London—from Southwark to Westminster—gain control over their properties. We combine legal knowledge with property management expertise to make the RTM process as straightforward as possible.
Take charge of your building—partner with Fraser Bond for expert RTM company setup in London.
