© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
As a Leaseholder there may be various reasons to take control of the management of the building, e.g. dissatisfaction with consistently high service charges, or a poor standard of repair. There are ways of addressing these problems without taking control of the management but sometimes it makes sense for the landlord or its managing agents to be replaced with a more efficient regime. There are three main ways of going about this. The best option for you will depend on your circumstances, and those of the other leaseholders in the building.
1 The Right to Manage (RTM)
Leaseholders may take over the management of their block without having to prove fault and without having to pay compensation to the landlord or existing managers. However, to qualify for RTM there must be “qualifying tenants” of at least two-thirds of the fl ats in the block (both flats if there are only two) and at least half of those qualifying must become members of the special RTM company which must be set up to exercise the right.
2. Appointing a Manager
Here, just one leaseholder or several can apply to the Leasehold Valuation Tribunal (LVT) to appoint a manager; there is no need for the majority of leaseholders needed for RTM to join in, or for an RTM company to be set up. The leaseholders making the application must show that it would be just and convenient in all the circumstances for a manager to be appointed, and show at least one of the following:
The landlord is in serious breach of management obligations; Unreasonable service or administration charge demands have or are likely to be made; Breaches of the relevant codes of practice;
Any other relevant circumstances.
This is a much more costly exercise than RTM. Also, the LVT is always reluctant to appoint a manager against the wishes of the landlord and possibly other leaseholders. Making this application should therefore be treated as a last resort.
3. The Right to Enfranchise (RTE)
Leaseholders can force the sale of the freehold of their block to the nominee purchaser of a group of leaseholders who represent at least half of the flats in the building, or both flats where there are only two flats in the building – but they will have to pay for this. The purchasing leaseholders will need to instruct a suitably qualified surveyor to advise them on what they will have to pay, and to negotiate for them. They will also need to instruct a solicitor to serve the notice on the landlord, setting the process in motion, and in due course to deal with the conveyance of the building to the nominee purchaser. Once this is done the participating leaseholders will be in full control of the management of the building, and have a share of the freehold which should enhance the value of their flat.