Right to Manage (RTM) – Expansion Plan

Following the successful acquisition of the Right to Manage (RTM) for 19 Rothbury Road (Block C) in August 2023, we are now in the process of extending RTM to encompass the remainder of the development.

Thanks to recent legislative amendments—specifically changes to the commercial space threshold under the Commonhold and Leasehold Reform Act 2002—we are now eligible to exercise RTM for the remaining blocks, A and B. Previously, developments with more than 25% commercial floor space were excluded from qualifying. However, with the revised criteria, our estate now falls within the scope of eligibility.

Legal Structure and RTM Company Requirements

It’s important to note that each self-contained building within a development must have its own RTM company. This is a legal requirement under the 2002 Act, which defines a "qualifying premises" as a building (or part of a building) that is structurally detached. Therefore, we are progressing with two separate RTM claims for Blocks A and B respectively. Each block will be represented by its own RTM company formed for this purpose.

Post-Acquisition Coordination & Joint Estate Management

Once RTM is formally acquired for Blocks A and B, we propose entering into a joint management agreement or memorandum of understanding between the three RTM companies. This document will clearly define:

  • The demarcation between shared estate responsibilities (e.g. car parks, communal landscaping, access roads) and those managed individually within each block;

  • Governance protocols for shared decisions;

  • Budgeting, cost apportionment, and dispute resolution mechanisms.

This will not be a complex document, but it will help prevent ambiguity and ensure that all parties have a clear understanding of their respective rights and obligations. Before formal adoption, we will present the agreement to residents for approval via a democratic vote.

To ensure a unified approach and reduce administrative friction, our intention is that all three RTM companies will be overseen by the same board of directors. This will ensure consistent decision-making across the estate and eliminate the risk of conflicting priorities between blocks.

Outcomes and Benefits Realised from RTM – Block C

Since achieving RTM for Block C, the residents have gained genuine control over the management of their building, with tangible financial and operational benefits. Working in collaboration with our managing agent, HAUS Block Management, we have:

  1. Assumed full control over the annual service charge budget and vendor selection;

  2. Achieved total transparency in all financial transactions and supplier agreements;

  3. Eliminated undisclosed developer commissions and inflated contractor markups;

  4. Secured significantly lower building insurance premiums through independent tendering;

  5. Delivered cumulative savings of over £20,000 annually, particularly in utilities and insurance.

These results demonstrate the substantial advantages of resident-led management through the RTM framework, not only in terms of cost-efficiency but also in enhancing accountability and service quality.

Next Steps

We will keep all leaseholders informed throughout the RTM process for Blocks A and B, including timelines for application submission, participation opportunities, and voting on the proposed joint management framework.

If you have questions about the RTM process, your legal rights under the 2002 Act, or would like to participate in the formation of the RTM companies for Blocks A and B, we welcome your involvement.