How do I set up an rtm?
Right to Manage Company or (RTM's) are fairly straight forward to set up. Firstly you will need the agreement of over 50% of leaseholders. Then the best practice would be to appoint a specialist RTM solicitor who will take you through the steps and on your behalf serve notice on the Freeholder and by Law the Freeholder will have to agree to let you do this. You will then be free to chose whom you like to manage your property.
The Right To Manage company (or RTM) provides a path for apartment owners within a block of flats to officially take charge of their own affairs with regards to the upkeep and management of their properties.
The RTM is a provision of the Commonhold and Leasehold Reform Act 2002 which enables the apartment owners to become members of a Limted company (which is Not for Profit) that can gain total control over the insurance, repairs, service charges and general maintenance of their block.
What do we need to setup an RTM Company?
In order to establish this Right To Manage Company you need be able to demonstrate the following minimum requirements:
The block or building must include a minimum of two flats.
At the very least 66% of the block must be let out or leased to qualifying tenants.
If the block or estate is partly used for commercial reasons then no more than a quarter should occupy the total floor area of the premises.
For qualifictaion membership each tenant must be a leaseholder whose lease was initially granted for an original length or term of more than 21 years.
The minimum required number of qualifying residents or leaseholders must be equal to at least half the total number of flats in the building.
Setting up the RTM Company
This is where Ringley Law (part of Ringley block management) can help you. An RTM company must be limited by guarantee (not for profit). We can via online portal register your Limited by Guarantee Company direct with Companies House incorporating the prescribed memorandum and articles of association applicable for an RTM company. We can then approach your freeholder on your behalf and go through the necessary steps - see other sections or fill out form on this page and you will be responded to within 2 hours.