Right to manage under the Commonhold and Leasehold Reform Act 2002: the procedure

by Practical Law Property and Practical Law Property Litigation

Maintained | England, Wales

A note providing guidance on the Right to Manage (RTM) framework under the Commonhold and Leasehold Reform Act 2002 (CLRA 2002), incorporating amendments made by the Leasehold and Freehold Reform Act 2024 (LFRA 2024). This note explores the meaning of RTM, the rationale for tenants considering this option, and the qualifying criteria for both the premises and the tenants. It details the procedure for acquiring the RTM, including the formation of an RTM company and service of a notice inviting participation, claim notice and counter-notice. This note also discusses the effect of serving a claim notice and the updated costs regime related to RTM claims, as well as the process for tribunal applications if a claim is contested and the implications of claim being withdrawn. For an overview of the position once the RTM has been acquired, see Practice note, Right to manage (RTM) companies: management after the acquisition date.

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