The Right to Manage Process: Step-by-Step Guide for Leaseholders

Published by Leaseholder Led · Independent guide — 5 May 2026

The short version

The Right to Manage process runs in six stages: check eligibility, form the RTM company, invite leaseholders to participate, serve the claim notice, deal with any counter-notice, then complete acquisition and handover. A clean, well-prepared claim takes four to six months. A disputed claim can take longer. Most delays come from procedural errors that are avoidable with the right preparation.

Before you start: is RTM actually necessary?

Right to Manage is one route to appointing a better managing agent — but it is not always the fastest. If your building already has a Residents' Management Company that leaseholders control, or an existing RTM company is already in place, you may be able to change managing agent without going through RTM at all. Check the legal structure before committing to a six-month statutory process.

RTM is typically necessary where a third-party freeholder controls the management appointment, leaseholders have no direct contractual power to change agent, and the freeholder is unwilling to cooperate voluntarily. In that situation, RTM changes the legal power structure rather than simply escalating a complaint.

For an overview of whether RTM is the right route for your building, read our guide on what Right to Manage is and whether you need it. For a balanced look at the advantages and disadvantages, see our Right to Manage pros and cons guide.

Not sure whether to go down the RTM route? We can check your building's legal structure and tell you whether RTM is likely to be necessary — before you spend months organising neighbours for the wrong process.

Check if your building qualifies

Step 1: check eligibility

Not every building or every lease qualifies for Right to Manage. The key eligibility conditions are set out in the Commonhold and Leasehold Reform Act 2002.

•The building must be a self-contained block or part of a building with separate entrances and services.
•At least two-thirds of the flats must be held on long leases (generally leases of more than 21 years when originally granted).
•No more than 25% of the building's internal floor area can be non-residential (shops, offices, car parks used commercially).
•The freeholder must not live in the building (resident landlord exemption).

Buildings with conversion flats, mixed commercial use, or unusual ownership structures can sometimes present edge cases. It is worth checking eligibility carefully before investing time in organising leaseholders, because a defective claim can be rejected and requires a 12-month wait before re-serving.

Step 2: form the RTM company

Leaseholders exercise Right to Manage through a dedicated company limited by guarantee. The company must use articles of association in the exact form prescribed by the Commonhold and Leasehold Reform Act 2002 (as amended). Its name must end with “RTM Company Limited.”

The company is registered at Companies House in the usual way. Once registered, it becomes the formal body that sends notices, admits members, and ultimately takes over management if the claim succeeds. For more detail on what the company does and who runs it, read our guide on what a Right to Manage company is.

At least one director must be a qualifying leaseholder in the building. It is common for two or three engaged leaseholders to act as directors at this stage.

Step 3: invite leaseholders to participate

Before serving the claim notice, the RTM company must serve a notice inviting participation on every qualifying leaseholder who is not already a member. This is a formal statutory step — not a residents' meeting or a WhatsApp message. The notice must be served correctly and must include the required information about the right to participate.

Leaseholders have 14 days to respond to the participation notice. After that period, the RTM company checks whether it has achieved the participation threshold.

At least 50% of qualifying leaseholders in the building must have joined the RTM company by the time the claim notice is served. In a building with 20 qualifying flats, that means at least 10 must be members. Leaseholder engagement ahead of this step is critical — a well-organised group reaches the threshold quickly; a group that hasn't been properly briefed can stall here for months.

Step 4: serve the claim notice

The claim notice is the formal document that tells the freeholder, any current managing agent, and any landlord under an intermediate lease that the RTM company is claiming the right to manage the building. The notice must be served correctly on each required recipient.

The notice must include specified information: the address of the building, the RTM company's registration details, the names of participating leaseholders, and the proposed acquisition date (which must be at least three months from the date of the notice). A copy must also be sent to every leaseholder in the building — even those who did not join the RTM company.

Errors in the claim notice are one of the most common ways RTM claims fail. A defective notice can give the freeholder grounds to reject the claim, forcing leaseholders to wait 12 months before re-serving. Taking professional advice at this stage is worth the cost.

Step 5: the counter-notice period

After receiving the claim notice, the freeholder has one month to respond. They can:

•Accept the claim — the acquisition proceeds on the proposed date.
•Serve a counter-notice disputing the claim — the RTM company then has two months to apply to the First-tier Tribunal for a determination.
•Serve no response — if the freeholder does not respond, the claim is treated as admitted and proceeds.

A freeholder cannot reject a claim simply because they dislike RTM. Grounds for a counter-notice are limited to statutory eligibility issues — the building does not qualify, the RTM company was not properly formed, the participation notices were not served correctly, or the threshold was not met. A well-prepared claim with properly served notices is much harder to knock off course.

Step 6: tribunal (if the claim is disputed)

If the freeholder serves a counter-notice, the RTM company must apply to the First-tier Tribunal (Property Chamber) within two months or the claim lapses. The tribunal will consider whether the RTM company has the right to acquire management, based on the evidence presented by both sides.

Tribunal applications add time and cost to the process. In practice, many counter-notices are served as a delaying tactic rather than a genuine challenge to eligibility, and a significant number are resolved before a full hearing. The stronger the original claim, the weaker the freeholder's position at tribunal.

Step 7: acquisition and handover

On the acquisition date, management functions transfer to the RTM company. The outgoing managing agent must hand over:

•Service charge accounts and funds held on behalf of leaseholders
•Insurance documents and renewal dates
•Existing contractor and supplier contracts
•Building records, maintenance logs, and compliance certificates
•Leaseholder contact details and correspondence history

The RTM company should have a new managing agent ready before the acquisition date. Ideally, the incoming agent will have been selected through a structured tender process that started during the RTM process itself — so there is no gap in management continuity after handover. This is the stage where years of poor management finally end and a leaseholder-led arrangement begins.

Typical timeline at a glance

Stage	Typical duration
Eligibility check and leaseholder organising	4–8 weeks
Form RTM company and register at Companies House	1–2 weeks
Serve participation notices (14-day response period)	2–3 weeks
Serve claim notice (minimum 3 months to acquisition)	3 months
Counter-notice period (freeholder has 1 month to respond)	1 month
Tribunal (if disputed)	3–12 months additional
Total (uncontested)	4–6 months

Common mistakes to avoid

•Not checking eligibility before starting. Discovering a disqualifying condition after you have already organised leaseholders wastes months of effort.
•Using incorrect articles of association. The RTM company articles must match the prescribed form. Using a generic company limited by guarantee template will invalidate the claim.
•Missing leaseholders from the participation notice. You must identify and serve every qualifying leaseholder. Missing even one leaseholder can be grounds for a counter-notice.
•Serving a defective claim notice. Errors in the claim notice — wrong acquisition date, missing information, incorrect recipients — can require a restart and a 12-month wait.
•Not having a managing agent ready. Completing the RTM process without a replacement agent lined up creates a management gap at the worst possible moment.

A successful RTM process depends on both legal sequence and leaseholder momentum. Leaseholder Led helps groups understand the correct route, build the participation needed, and have a quality managing agent ready before the acquisition date arrives.

Get a free viability check

Common questions

How long does the Right to Manage process take?

A straightforward Right to Manage claim typically takes between four and six months from forming the RTM company to the acquisition date. If the freeholder serves a counter-notice disputing the claim, the process can take longer — particularly if the dispute goes to the First-tier Tribunal. Good preparation before serving the claim notice significantly reduces the risk of delay.

How many leaseholders do you need for Right to Manage?

At least 50% of qualifying leaseholders in the building must be members of the RTM company when the claim notice is served. Not all leaseholders need to participate, but the 50% threshold must be met. In a building with 20 qualifying flats, at least 10 qualifying leaseholders need to join the RTM company before the claim is made.

Can a freeholder refuse Right to Manage?

A freeholder cannot refuse Right to Manage simply because they object to it. They can serve a counter-notice disputing eligibility — for example, arguing the building does not qualify, the RTM company was not properly formed, or the participation threshold was not met. If they dispute the claim, the RTM company can apply to the First-tier Tribunal for a determination. The tribunal can confirm the right even where the freeholder objects, provided the claim is valid.

What happens if Right to Manage is disputed?

If the freeholder serves a counter-notice rejecting the claim, the RTM company must apply to the First-tier Tribunal within two months or the claim lapses. The tribunal will hear the dispute and decide whether the RTM company has the right to acquire management. A well-prepared claim with correct notices and proper leaseholder participation is much more robust at tribunal than one with procedural errors.

What happens on the acquisition date?

On the acquisition date, management functions legally transfer to the RTM company. The outgoing managing agent and freeholder must hand over service charge accounts, contracts with suppliers, insurance documents, building records, and any funds held. The RTM company then appoints its chosen managing agent to take over day-to-day management of the building.

What are the most common mistakes in the Right to Manage process?

The most common mistakes are: not checking building eligibility properly before starting; forming the RTM company with incorrect articles of association; failing to identify and invite all qualifying leaseholders before serving the claim notice; serving the claim notice with procedural errors; not having enough members at the point of the claim; and not having a managing agent ready for handover. A defective claim notice can require you to start the process again and wait 12 months before re-serving.

Related guides

•What Is Right to Manage and Do I Need It? — eligibility, costs and whether RTM is the right route
•What Is a Right to Manage Company? — members, directors, registration and post-acquisition responsibilities
•Right to Manage Pros and Cons — a balanced guide to help you decide whether RTM is worth it
•Can I Change My Managing Agent Without Right to Manage? — the faster route where it exists

This guide is for general information only and does not constitute legal advice. The Right to Manage process involves statutory notices with strict requirements. For advice specific to your building and circumstances, consult a solicitor specialising in leasehold property.