20 August 2025
One of the most notable changes relates to the Right to Manage (RTM), a legal process that allows leaseholders to take over the management of their building from a landlord or management company.
If you own a leasehold flat, these changes could directly affect you. Below, we explain what’s new, how the rules have shifted, and what this means for leaseholders considering a Right to Manage claim.
What is the Right to Manage?
The Right to Manage was first introduced by the Commonhold and Leasehold Reform Act 2002. It enables leaseholders to form a Right to Manage company and legally take over the management responsibilities for their building without needing the landlord’s consent.
In practice, this gives flat owners greater control over services such as maintenance, repairs, insurance, and day-to-day building management.
What Has Changed in 2025?
1. Higher Non-Residential Threshold
Previously, only buildings with less than 25% non-residential space (such as shops, offices, or other commercial units) were eligible for RTM. The threshold has now been raised to 50%, which means many more mixed-use buildings can now qualify.
For example, if your building includes a large ground-floor shop that once disqualified you from applying, you may now be eligible to pursue RTM.
2. No More Freeholder Legal Fees
Until now, leaseholders bringing an RTM claim were required to pay the landlord’s or managing agent’s legal costs. This was often a barrier, as the process could quickly become expensive.
The 2025 reforms have removed this obligation, making RTM a far more affordable and accessible option for flat owners.
How Do You Make a Right to Manage Claim?
To begin the process:
Because the rules are technical, most leaseholders choose to get specialist advice before serving notice.
Can a Landlord Challenge an RTM Claim?
In most cases, no. If the building qualifies and the legal process is followed correctly, the landlord cannot prevent leaseholders from taking over management.
However, small technical mistakes can cause an RTM claim to fail. That’s why seeking professional support at an early stage is strongly recommended.
Support with Right to Manage
If you are considering a Right to Manage application, or if you want to check whether your building qualifies under the new 2025 rules, our property team can help.
Call us today on 01202 526343 or fill in our contact form to speak to one of our team: Contact Us AB Solicitors For Your Legal Needs
