Guide · Right to Manage

Right to manage or buy the freehold?

Right to manage vs collective enfranchisement: cost, control, ground rent, lease extensions, who qualifies and how long each takes, compared side by side.

Last reviewed 22 October 2026 by Phil, founder3 min readPlain text (Markdown)

The short answer

The right to manage gives leaseholders control of the building's management without buying anything, and is relatively quick and cheap. Buying the freehold (collective enfranchisement) costs a price set by valuation plus legal fees, but gives full ownership: the company receives any ground rent, can grant long lease extensions cheaply and can enforce every part of the leases. Both leave volunteers with the same day-to-day job of running the building.

Key facts

RTM: no price, usually no landlord's costs since March 2025; the landlord keeps the freehold and ground rent.
Buying the freehold: a price set by valuation, plus your own and (currently) the landlord's reasonable costs.
Both need at least two-thirds of flats on long leases and participation by at least half of the flats.
Commercial space: up to 50% for RTM, but still no more than 25% for buying the freehold.
An RTM company can later buy the freehold; it then stops being an RTM company.

Side by side

	Right to manage	Buying the freehold (collective enfranchisement)
What you get	Control of management: services, repairs, insurance, service charges	Ownership of the building, and with it management
Price	None	A price set by a valuation formula
Landlord's costs	Generally not payable since 3 March 2025	Currently payable (reasonable legal and valuation costs)
Ground rent	Still paid to the landlord	Paid to your company, which can reduce it
Lease extensions	Still negotiated with the landlord	Your company can grant them, often cheaply
Enforcing the leases	Yes, but never by forfeiture	Yes, as landlord
Who can take part	Qualifying leaseholders of at least half the flats	Qualifying leaseholders of at least half the flats
Commercial space limit	Up to 50% of floor area	No more than 25% of floor area
Typical time	Five to seven months if undisputed	Often a year or more
Professional help	Optional	Strongly advised (solicitor and valuer)

When the right to manage makes sense

You mainly want better management and lower or clearer costs.
You can't raise the money to buy the freehold, or not everyone wants to contribute.
The building has a lot of commercial space (between 25% and 50%).
You want to start quickly and see how self-management goes.

When buying the freehold makes sense

Leases are getting short and you want long, cheap lease extensions.
Ground rents are high or rising.
You want permanent control, not control the landlord could one day regain if the company fails.
Enough leaseholders can and will contribute to the price.

The job is the same either way

Whichever route you choose, a company run by volunteer leaseholders ends up doing the same work: bills to leaseholders (service-charge demands), insurance, repairs, fire safety, accounts and company filings. A freehold company also deals with ground rent and lease extensions. See RTM company, RMC or freehold company?.

A middle path

Some blocks claim the right to manage first. Once the company is running well and has the members' trust, it buys the freehold, by agreement or using the legal right. When an RTM company acquires the freehold, it stops being an RTM company (s.73(5)) and continues as the landlord.

Changes coming

The Leasehold and Freehold Reform Act 2024 will change the rules for buying the freehold, including how the price and the landlord's costs are worked out, and the commercial space limit. Most of those changes weren't in force as at October 2026, so check the current position before you start.

This is general information, not legal advice. Every building and lease is different. For free initial advice, contact LEASE (The Leasehold Advisory Service): https://www.lease-advice.org/

Questions people ask

Which is cheaper, right to manage or buying the freehold?

The right to manage is almost always much cheaper, because there's no price to pay and, since March 2025, usually no landlord's costs. Buying the freehold means paying a price set by valuation, which depends heavily on the lease lengths and ground rents, plus legal and valuation fees.

Can we do the right to manage first and buy the freehold later?

Yes. Many groups take over management first, build trust and funds, and buy the freehold later. When an RTM company buys the freehold itself, it stops being an RTM company and simply becomes the landlord.

Is the price of buying the freehold changing?

The Leasehold and Freehold Reform Act 2024 will change how the price and costs are calculated, but those provisions weren't in force as at October 2026. Get current advice from a specialist solicitor and valuer before deciding.