- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 18 Dec 2020
Right to manage for leaseholders
The Commonhold and Leasehold Reform Act 2002 introduced the ability for leaseholders to transfer the management of flats from the landlord to a right to manage company, set up by the leaseholders. The ownership of the building remains with the landlord.
- Only flats (not houses) qualify.
- At least two-thirds of the flats in the building must be leasehold with a lease of at least 21 years when granted.
- The building must be predominantly (at least 75%) residential.
- If there are less than four flats in the block, the landlord must live elsewhere unless the flats are purpose-built, rather than conversions.
- At least half of the flats in the building must become members of the right to manage company.
It is not necessary for leaseholders to obtain the landlord’s permission in order to transfer the management and it is not necessary for there to have been any problems with the way the property was managed by the landlord.
To exercise the right to manage, a formal notice needs to be served on the landlord. The management will then transfer to the right to manage company. The landlord is eligible to become a member of the right to manage company.
It is possible for the landlord to dispute the application by serving a counter-notice to the right to manage company. This must outline the details of why the landlord does not think the company is entitled to management. This can include:
- The building does not qualify.
- The right to manage company is not legally compliant.
- The right to manage company is comprises less than half the flats in the building.
- Collecting and managing the service charge.
- Maintenance of the communal areas including hallways and stairwells.
- Upkeep of the actual building, for example the roof.
- Managing complaints about the property.
- Decision-making for budgets
- Standards of management
- The overall functioning of the building.
 Find out more
 Related articles on Designing Buildings Wiki.
- Break clauses in leases.
- Community right to bid.
- Community right to build.
- Community right to challenge.
- Community right to reclaim land.
- Flat definition.
- Lease Negotiations - Tenants Checklist.
- Leasehold enfranchisement.
- Localism act.
- Rent review.
- Rent-free period.
- Right to build.
- Right to contest.
 External references
Featured articles and news
One of England's grandest country houses.
Take just two minutes to provide your feedback.
An update of standards and regulations are under consideration.
Exploring the key to the adoption of this abundant energy source.
His clients have ranged from Liberace to St Nick to world-class athletes.
These tactical structures can be permanent or temporary.
Organisation recognises milestones of the project's next phase.
Welding and metalworking businesses must manage respiratory risks.
New report explores how regulations are being put into action.
The golden thread and BS 8644-1.
Bitumen binder may delay road surface deterioration.
A varied portfolio of internationally recognised buildings.
Threatened by housing and expanding universities.
Getting "boots on the ground" to make things happen.