We are six leaseholders in a small block and we are seriously considering Right to Manage. Every article we read says something different about cost, and several say we would have to pay the freeholder's legal bills as well as our own. What does RTM actually cost in 2026, and what should we budget for before we start?
There is no single fixed cost for obtaining Right to Manage. Since 3 March 2025 the position on the landlord's costs has changed substantially: under section 87A of the Commonhold and Leasehold Reform Act 2002, an RTM company and its members are generally not liable for costs incurred by any other person in consequence of the claim notice, and a contrary lease or contract term has no effect to that extent. There are limited exceptions, principally court or tribunal costs orders, tribunal orders under section 87B where a claim ceases and the company acted unreasonably, and the reasonable costs of complying with a statutory information notice under section 82. An RTM company will still normally have its own costs: incorporating the company in the prescribed RTM form, obtaining the title documents the claim requires, professional RTM administration if it is instructed, and specialist advice or representation where the claim is difficult or contested. The total therefore depends far more on how the claim is run than on any published average.
Right to Manage costs changed on 3 March 2025. A great deal of guidance still online was written for the old regime. The legal position set out below was checked against the current text on legislation.gov.uk in August 2026.
Before 3 March 2025, sections 88 and 89 of the Commonhold and Leasehold Reform Act 2002 made an RTM company liable for the reasonable costs incurred by the landlord and certain other parties in consequence of the claim notice, with participating members potentially jointly and severally liable if the claim was withdrawn or ceased to have effect. That is the regime most older articles describe.
Sections 88 and 89 were omitted on 3 March 2025 by the Leasehold and Freehold Reform Act 2024, commenced by SI 2025/131. They were replaced by two new provisions.
Section 87A now provides that an RTM company and a member of an RTM company are not liable for any costs incurred by any other person in consequence of a claim notice given by the company, except as set out in that section. Section 87A(2) adds that a lease, transfer, contract or other arrangement is of no effect to the extent it would provide to the contrary, so a costs clause tucked into a lease or a side agreement cannot restore the old position.
Section 87A does not mean RTM is costless. It says nothing about what the RTM company itself chooses to spend. It also carries express exceptions:
Section 87A(8) also signposts the restrictions in the Landlord and Tenant Act 1985 on recovering claim-related costs through a variable service charge, including section 20J, which prevents a landlord's non-litigation costs of a relevant claim being charged to non-participating tenants.
The claim must be made by a company incorporated in the prescribed RTM form, with the memorandum and articles required by the RTM Companies (Model Articles) (England) Regulations 2009. Companies House incorporation fees as at August 2026 are £100 online or by software filing, £124 on paper, and £156 for same-day online incorporation. A confirmation statement fee of £50 applies annually once the company exists, which is an ongoing cost of running the company rather than a cost of claiming.
A claim may need title information for the flats, the freehold title and, in some buildings, intermediate interests. HM Land Registry information services fees as at August 2026 are £7 per official copy of a register, title plan or document through the portal or Business Gateway, and £11 per copy by post. How many copies are needed varies from building to building; a simple block with one freehold title and a handful of leases is not the same exercise as a mixed-use development with several intermediate interests.
Leaseholders can carry out parts of the process themselves. Many instruct a professional because RTM is a statutory procedure with prescribed notice content and fixed periods, and because procedural errors can delay or defeat a claim. Fees for professional RTM assistance vary considerably between providers and with the scope of what is actually included, so a quote is only meaningful once you know what it covers.
A solicitor is not automatically required simply because leaseholders wish to claim RTM. Specialist advice tends to earn its keep where eligibility is uncertain, titles are complicated, there are intermediate landlords, non-residential parts raise eligibility questions, notices are challenged, a counter-notice disputing entitlement is served, or proceedings are on the cards.
If entitlement is disputed, an application to the First-tier Tribunal (Property Chamber) may be needed, for example under section 84(3) of the 2002 Act following a negative counter-notice. Under Schedule 1 to the First-tier Tribunal (Property Chamber) Fees Order 2013, as substituted with effect from 13 July 2026, applications under provisions of the Commonhold and Leasehold Reform Act 2002 that are not separately listed attract an application fee of £200 and a hearing fee of £300. Fee remission may be available in some cases. Separately, a costs order can be made where the tribunal has the power and chooses to exercise it, which is one of the exceptions preserved by section 87A(5).
Occasionally a claim needs something more, such as evidence about the internal layout of a mixed-use building or the extent of appurtenant property. This is the exception rather than the rule. An ordinary residential block claim does not normally require a surveyor, an expert or counsel.
Generally, no, not under the regime in force since 3 March 2025. Section 87A provides that an RTM company and its members are not liable for costs incurred by any other person in consequence of the claim notice, except as that section allows, and any contrary contractual provision is ineffective to that extent. The old sections 88 and 89 liability for the landlord's reasonable costs of dealing with the claim has been removed.
That is not the same as saying no cost can ever fall on an RTM company. The exceptions matter:
So the accurate statement is: a landlord can no longer send the RTM company a bill for its costs of dealing with the claim as of right, but costs can still arise in defined statutory circumstances, and the RTM company still pays for its own work.
Fees differ between providers, and there is no statutory scale. For transparency about our own position: East Valley's standalone RTM service starts from £1,500. A typical straightforward claim is generally in the region of £1,500 to £2,500 depending on the number of flats, the number of participating leaseholders, title and lease complexity, the amount of administration involved and any unusual features. Complex or contested matters are quoted separately, and external costs such as Companies House and Land Registry fees are additional.
These are East Valley's own prices. They are not an industry average, they are not a statutory figure, and they should not be read as what other RTM professionals charge.
This example is illustrative only. It is not a quote and it does not fit every building.
A six-flat block wants to acquire Right to Manage. Assume the building appears eligible, enough qualifying tenants participate, the claim is straightforward and no tribunal dispute develops. The likely cost headings would be:
Using East Valley's own pricing, a professional fee from £1,500 would work out at £250 per flat if all six flats contributed equally. It is worth being clear that this is arithmetic, not law. There is no statutory per-flat charge for RTM, participation is voluntary, and how participating leaseholders share costs between themselves is a matter for them. Non-participating leaseholders are not obliged to contribute, and claim costs are not simply passed into the service charge.
Yes. Nothing in the statutory process requires leaseholders to appoint East Valley or any other managing agent in order to make a claim. Some well-organised groups do it themselves, particularly in small, uncomplicated blocks.
The practical work is real, though. A DIY claim means confirming eligibility, incorporating the company on the prescribed articles, identifying every landlord and qualifying tenant, serving participation and claim notices in the prescribed form, tracking the statutory periods, handling any counter-notice and preparing for the acquisition date and the handover that follows. The step-by-step detail is set out in our Right to Manage guide.
For qualifying blocks, East Valley offers a £0 East Valley RTM service fee where the RTM company enters the agreed 24-month East Valley management arrangement following successful acquisition.
To be precise about what that does and does not mean:
We do not describe this as free Right to Manage, because the RTM company can still have external costs and because the offer is conditional. Find out about Funded Right to Manage, or read the full Funded RTM terms.
A professional fee shared voluntarily among participating leaseholders lands very differently in a four-flat block than in a forty-flat block. The work involved in a statutory claim does not shrink in proportion to the number of flats, so the per-participant share tends to be higher in small developments. That is one reason a funded model can be particularly relevant to smaller resident-led buildings.
This is not to say larger blocks are automatically cheaper or simpler. Bigger buildings often bring more landlords, more complex titles, commercial units and more administration.
Work through these before committing:
It depends on why it failed and on what the RTM company has already spent. Company formation and title costs are already incurred. Professional fees depend on the terms agreed with the provider. Tribunal fees already paid are not recovered by abandoning the claim, and section 87B leaves open the possibility of a costs order where the claim ceases and the company acted unreasonably.
For East Valley's funded programme specifically: where we accept a development and an ordinary claim fails through no fault of the participating leaseholders, East Valley absorbs its own RTM service and time cost. External costs remain payable or reimbursable. That is our policy for our own funded programme and says nothing about how other providers treat a failed claim, so ask any provider to put its position in writing before you instruct.
Once a claim succeeds, the ongoing question is management cost rather than claim cost. Our RTM company management page explains how we work with RTM directors after acquisition, and our block management pricing page sets out what management itself costs.
Our RTM Cost Calculator gives an indicative professional fee and an illustration of the potential cost per participating leaseholder.
Use the RTM Cost CalculatorThe useful mental model is two separate cost buckets. Bucket one, the other side's costs, largely closed on 3 March 2025. Bucket two, your own costs, did not. Budgeting well means being honest about bucket two, and about what happens if the claim is disputed.
Relying on old RTM cost guidance
Much of what is still published online describes the pre-March-2025 regime under sections 88 and 89, which no longer applies.
Assuming RTM is completely free after the reforms
Section 87A removes liability for another person's costs in consequence of the claim notice. It does not remove the RTM company's own formation, document, professional and tribunal costs.
Confusing the landlord's costs with your own professional costs
They are different things. The reforms addressed the first; the second is entirely a matter of what the RTM company chooses to spend.
Choosing professional help purely on headline price
RTM is a statutory procedure. Scope, experience and what happens if the claim is disputed matter as much as the number on the quote.
Not budgeting for a disputed claim
A straightforward administrative claim and contested tribunal proceedings are very different exercises, with very different costs.
Assuming every leaseholder must chip in equally
Participation is voluntary and there is no statutory per-flat RTM charge. How participants share costs is a matter of agreement between them.
Most questions on this topic are management questions rather than legal ones, and the two are worth separating. A managing agent can tell you how something works day to day and what it will cost. A solicitor tells you what your rights are and how a Tribunal is likely to view them.
East Valley Properties provides management expertise, not legal advice. Where a matter turns on the wording of your lease or on formal proceedings, we will say so and work alongside your solicitor.
The official material behind this guide. We summarise it in plain English rather than reproducing it.
Inserted 3 March 2025. RTM companies and members are not liable for costs incurred by others in consequence of a claim notice, except as set out in the section.
Inserted 3 March 2025. The conditions for a costs order where a claim is withdrawn or ceases and the RTM company acted unreasonably.
The former general costs liability, omitted with effect from 3 March 2025.
The former costs liability where a claim ceased, omitted with effect from 3 March 2025.
Subsections (4) and (5), inserted 3 March 2025, make the RTM company liable for the reasonable costs of complying with an information notice.
The amending provision that omitted sections 88 and 89 and inserted sections 87A and 87B.
Brought the RTM costs changes into force on 3 March 2025.
Restricts recovery of a landlord's non-litigation costs of a relevant claim, including an RTM claim, through a variable service charge payable by non-participating tenants.
Incorporation fees checked August 2026: £100 online or software, £124 paper, £156 same-day.
Official copy fees checked August 2026: £7 per copy via the portal or Business Gateway, £11 by post.
Schedule 1 substituted with effect from 13 July 2026 by SI 2026/642. Applications under the 2002 Act not listed elsewhere: £200 application fee, £300 hearing fee.
The prescribed articles an RTM company must adopt.
Official general guidance. Secondary to the legislation for the current costs position.
Free government-funded guidance for leaseholders.
We act as managing agent for RTM companies across Greater London and Essex, covering service charge accounting, compliance and contractor management on fixed fees.
Answered by Romain Maillard - Director, East Valley Properties
Romain manages residential blocks and estates for RTM companies, residents' management companies, share of freehold developments and freeholders across East London and Essex.
Published · Updated
Based on the legislation and official guidance cited on this page.
General property management information, not legal or professional advice. Where a decision depends on an individual lease, building, dispute or technical assessment, obtain specialist advice. See our editorial standards.
This answer has been anonymised. Personal details, addresses and company names have been removed. Guidance is general and does not replace advice from a solicitor or surveyor on your specific block. East Valley Properties is a managing agent, not a firm of solicitors or legal advisers.
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