| Service Option | Costs and Notes |
|---|---|
| Registration Only – with your representatives as Directors, registered office provided by you | |
| Registration with Registered Office (1st year) | |
| Registration with complete support, including drafting the Memorandum and Articles to suit your exact circumstances, Registered Office (1st year) and MTM Company Secretary (optional) |
A Right to Manage (RTM) company in the UK allows leaseholders of a building to take over the management of the property from the landlord, as per the Commonhold and Leasehold Reform Act 2002. To register an RTM company, you must meet certain legal requirements and follow specific steps. Here’s a breakdown:
1. Eligibility Requirements
For the Building:
For the Building:
Type of Building:
- Must be a self-contained building or part of a building (e.g., a block of flats).
- Can include a converted property, provided it has at least two flats.
Must be a self-contained building or part of a building (e.g., a block of flats).
Ownership:
– At least two-thirds of the flats must be owned by qualifying leaseholders.
Exclusions:
– The building cannot be more than 25% non-residential (e.g., shops or offices).
– Cannot apply to buildings where the local council is the landlord.
For Leaseholders:
Qualifying Leaseholders
– Leaseholders must hold a long lease (typically more than 21 years) to be eligible.
– At least 50% of the leaseholders in the building must agree to participate.
2. Creating the RTM Company
– Legal Structure:
– The RTM company must be set up as a private company limited by guarantee.
– Its articles of association must comply with legal requirements for RTM companies.
– Company Name:
– The name must include “RTM Company Limited.”
– You can check name availability via Companies House.
– Directors and Members:
– Leaseholders participating in the RTM must become members of the company.
– At least one director is required (usually a leaseholder).
– Registration:
– Register the company with Companies House. You’ll need to provide:
– A registered office address.
– Details of directors and members.
– Memorandum and articles of association.
3. Serving Notices
After forming the RTM company:
– Invitation to Participate Notice:
– Send to all qualifying leaseholders who haven’t joined the RTM company, inviting them to participate.
– Claim Notice to Landlord:
– Notify the landlord of the RTM claim. The notice must include:
– RTM company details.
– Information about the building and qualifying leaseholders.
– A proposed acquisition date (at least three months after serving the notice).
4. Landlord’s Response
– The landlord has the right to:
– Accept the claim.
– Dispute it by applying to a tribunal within a set timeframe (usually one month).
5. Transfer of Management
If the landlord does not dispute or the tribunal rules in favour of the RTM company:
– The RTM company takes over management on the acquisition date.
– Existing management contracts with third parties are usually transferred.
Additional Considerations
– Costs: Leaseholders must bear the costs of setting up and running the RTM company, including legal and tribunal fees (if applicable).
– Responsibilities: Once operational, the RTM company is responsible for all management duties, such as maintenance, insurance, and service charges.
For detailed guidance, contact MTM on 0161 835 2080 or fill in our enquiry form at www.mtmllp.co.uk/
| Key Decisions | Summary of Instructions |
| Does the Building Qualify | |
| Do we have a high enough percentage of qualifying leaseholders? | |
| Are at least 50% of the qualifying leaseholders willing to proceed with the RTM Claim? | |
| Is the Name Available | |
| Registered Office | |
| First Director(s) | |
| Member(s) Subscribing | |
| Number and Value of Shares subscribed for on incorporation | (Shares – usually one share of £1 fully paid or unpaid) |