Information & advice

The Commonhold and Leasehold Reform Act 2002 introduced the Right to Manage (RTM).

RTM allows a group of leaseholders in a block of flats to form a company (RTM Company), which can take over responsibility for carrying out or arranging the management of their block, in accordance with all of the leases held by qualifying tenants.

In most cases, the RTM Company would become responsible to all leaseholders for:

• services
• repairs
• maintenance
• insurance
• management of the whole or part of the premises.

 

What is RTM?

RTM aims primarily to provide choice-based management of blocks of flats, without the need for leaseholders to collectively purchase the freehold. It does also allow leaseholders to replace managers (also known as managing agents) with whom they are unhappy.

The RTM is available only to leaseholders of flats in a block. It does not apply to leasehold houses, freehold properties or entire retirement estates. It also does not apply to leaseholders with ‘shared ownership’ unless certain conditions are met.

 

Good practice guide

AIMS was awarded an Innovation and Good Practice grant by the Housing Corporation to fund a Right to Manage project.

The purpose of the project was to ensure people living and working in private retirement housing had access to quality, independent information about all aspects of the RTM:

• to find out what older people thought about RTM
• to look at the practical impact of RTM on the private retirement sector

As a result of this funding, AIMS has now published a Good Practice Guide, which is downloadable at the top right corner of this screen.

This guide is intended to ensure that any decision to proceed with the RTM is carefully considered and made on well-informed grounds.

Once a decision is reached to proceed with RTM, it should also help ensure that all necessary systems and procedures are in place, and that everything is carried out in an appropriate, just and equitable way by all parties involved.

The Guide contains ‘good practice’ which may not be a requirement of the legislation. It does not provide a full, detailed interpretation of the law, nor does it attempt to cover every case; only the Courts can do that.

Right to Manage project

The Right to Manage project grant awarded by the Housing Corporation also enabled AIMS to undertake a postal survey of leasehold residents living in retirement properties being managed by either a private company or a Registered Social Landlord (RSL) throughout England and Wales. This was undertaken with a view to finding out the attitudes of leaseholders in retirement housing towards RTM. The survey was carried out with the help of the Elderly Accommodation Counsel (EAC), and the results are detailed in the survey report, which can be found at the bottom of this page.

As a result of feedback from the RTM Survey, AIMS' Policy Forums, AIMS leaseholders’ residents panel, and from enquiries, advice and casework on RTM, AIMS has also produced a final report. This:

• draws on the work that AIMS has undertaken over the course of the project;
• examines the legislation and its practical impact on leaseholders, including the particular challenges faced by older leaseholders in retirement housing; and
• makes specific recommendations for consideration by Government, advice agencies, managing agents and residents.

The final report was launched at AIMS leasehold conference on Monday 5th November 2007, and a copy can be downloaded at the bottom of the page.

AIMS and the Right to Manage (RTM)

AIMS is able to provide assistance to any leaseholders, RTM Companies or managers who require practical, impartial information and advice on any aspects of RTM. It can also offer an independent ballot counting service.

In the event that any serious disputes arise between the RTM Company and the managers they appoint, or between the landlord and the RTM Company, AIMS can also arrange facilitated meetings or mediations at which the issues and potential solutions can be explored.

AIMS can provide training on RTM, which provides information about the legislation, good practice, and the potential advantages and disadvantages of RTM.

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