Right to Manage
If you are a leaseholder of a bpha owned block your lease will set out the responsibilities of both bpha as the freeholder and you as the leaseholder. Sometimes, depending on the development, third party managing agents may carry out the day to day management of your block on behalf of either bpha or the freeholder of your block.
The Commonhold and Leasehold Reform Act 2022 grants leaseholders the right to change the appointment of the manager of their building to another provider by setting up a Right to Manage Company.
More information can be found on the Government’s website or via Shelter.
If you are a leaseholder, have reviewed the Government’s guidance and would like support with any questions you have on the Right to Manage please contact us.
Understanding the Right to Manage (RTM)
As a leaseholder, you may have the legal right to take over certain management responsibilities for your building. This is known as the Right to Manage (RTM) and is set out in the Commonhold and Leasehold Reform Act 2002.
What is RTM?
The Right to Manage allows leaseholders of flats in certain buildings to collectively form a company that can take over the management of services such as:
- Maintenance of communal areas
- Arranging repairs
- Managing service charges.
This process does not require leaseholders to prove fault or poor management by their current landlord or managing agent.
Who can apply?
The RTM process can be initiated if the following conditions are met:
- The building must be self-contained and include at least two flats
- At least two-thirds of the flats in your building must be held on long leases
- At least 50% of the leaseholders in your building must agree to participate
- The building must meet other legal criteria - for example, it cannot be a local authority-owned property.
What’s involved?
The process requires forming a RTM company, notifying the landlord, and potentially taking on management responsibilities, some of which could be significant. It is a legal process and can involve costs.
What other considerations are there?
bpha may not be the freeholder of your building and the services you are receiving may be being provided by another party.
If you're interested in the Right to Manage, we recommend you consider seeking independent legal or professional advice. Taking over the management of a building involves a range of duties, and it's important to understand the full implications before starting the process.
More information
If you'd like to find out more about RTM and how it may apply to your building, you can visit:
- https://www.gov.uk/leasehold-property/right-to-manage-and-management-disputes
- https://www.lease-advice.org/fact-sheet/right-to-manage/
- Or contact us for further guidance at info@bpha.org.uk.
