The RTM Companies have appointed HAUS Block Management to professionally manage the Right to Manage process on a no win, no fee basis.

The cost of the RTM campaign is £95 + VAT per flat, which covers the professional work required to establish the RTM Companies and guide them through the statutory Right to Manage process. This includes company formation, serving the statutory notices, project management, administration, membership management and professional support through to the acquisition date.

If additional professional costs are required during the campaign, HAUS has capped the total cost to leaseholders at £120 + VAT per flat. This cap includes the £95 + VAT campaign fee and any additional costs. HAUS will cover any costs above that amount.

No fees are payable if the RTM claim is unsuccessful.

The directors are committed to keeping any additional costs to an absolute minimum and will be transparent with members about any expenditure incurred during the campaign.

Right to Manage is a one-off investment in the future of St David's Square. Once acquired, the RTM Companies will have the ability to appoint and oversee their chosen managing agent, scrutinise expenditure, obtain competitive quotations and help ensure that service charge funds are spent efficiently and in the best interests of all residents.

The six-company structure is a legal requirement, rather than six separate management operations. Each RTM company will acquire the right to manage its own qualifying building because the statutory right applies to the relevant self-contained building. The Court of Appeal confirmed in Triplerose Ltd v 90 Broomfield Road RTM Co Ltd [2015] EWCA Civ 282 that a single RTM company cannot acquire the right to manage multiple separate blocks through one claim. This is why six RTM companies are required.

Operationally, all six companies intend to work through a single estate-wide residents’ working group and appoint the same professional managing agent. This will support common standards, shared procurement, coordinated budgeting and consistent reporting, while preserving clear legal accountability for each block.

Each RTM company will approve its own block budget and expenditure, while coordinating with the other companies on matters affecting more than one building.

The controls proposed include:

• a separate service-charge budget for each building, reflecting its particular requirements, as is currently the case, with expenditure reported against the approved budget;

• one managing-agent team and common contractor standards across all six blocks, avoiding unnecessary duplication;

• competitive procurement and evidence-based approval of significant expenditure;

• regular reporting to the six RTM boards through the single estate-wide residents’ working group, with additional working groups established where a particular matter requires closer coordination; and

• service standards, compliance reporting, complaints escalation and transparent review of management performance.

Block-specific matters will therefore be handled by the relevant RTM company and its managing agent. The key difference is that the managing agent will be accountable to the residents through the RTM company, rather than to the freeholder.

Wider estate matters - such as estate drainage, communal external areas, the grounds and infrastructure serving several buildings - will remain with the freeholder or its appointed estate manager, subject to the leases and title documentation.

The appointed managing agent will maintain a formal working relationship between the estate-wide residents’ working group and the freeholder’s appointed estate manager so that issues crossing the management boundary are not overlooked.

This will include named contacts, information-sharing arrangements, emergency escalation procedures and clarity over who is responsible for instructing and funding any works.

The new structure:

Each RTM company will control the management functions relating to its own building and any areas or facilities serving that building exclusively.

This will normally include the internal common parts, building fabric, block-specific pumps and plant, and other services within that building’s management scope.

All six companies will work through a single estate-wide residents’ working group and appoint the same professional managing agent.

The wider estate areas and shared facilities will remain under the freeholder’s control. The freeholder will therefore retain the right to decide who manages those estate functions.

This position follows FirstPort Property Services Ltd v Settlers Court RTM Co Ltd [2022] UKSC 1. The Supreme Court held that an RTM company for one block does not acquire management of estate facilities shared with other buildings or properties.

The existing estate manager may therefore continue to provide those services and recover the appropriate estate charge from the RTM block’s leaseholders.

In practical terms, the division will be:

• Block costs: controlled by the relevant RTM company and managed by the appointed managing agent on its behalf.

• Estate costs: controlled by the freeholder and managed by whichever estate manager it appoints. The estate-wide residents’ working group would encourage the freeholder to appoint the same managing agent for the estate functions, although the final decision remains with the freeholder.

• Shared interfaces: coordinated through an agreed protocol between our appointed managing agent, the six RTM companies and the estate manager.

At present, leaseholders receive one annual demand or invoice containing separate charges for the block, estate and car park.

Under the RTM arrangement, these charges are likely to be presented through two demands: one for the block and one for the wider estate.

This reflects the division between two distinct management functions and should not result in the same service being charged for twice.

The RTM managing agent’s fee will relate only to the functions transferred to the relevant RTM company.

The estate manager’s fee should correspondingly reflect the narrower estate services that remain with the freeholder.

The RTM companies cannot dictate the freeholder’s choice of estate manager or determine the estate manager’s fee.

They can, however, seek transparency through the service-charge accounts and challenge any duplicated, incorrectly allocated or unreasonable charge.

Concerns about estate areas or charges can also be considered collectively through the single estate-wide residents’ working group, giving residents a stronger and more coordinated basis for requesting corrections or, where appropriate, pursuing a challenge in the First-tier Tribunal.

The Right to Manage process follows a statutory timetable set out in the Commonhold and Leasehold Reform Act 2002.

Once the RTM Companies have secured sufficient membership (50%) and are ready to proceed, the formal legal process typically takes around four to six months from serving the Claim Notice to the acquisition date, provided the claim is not disputed.

The current focus is on encouraging eligible leaseholders to become members of their RTM Company. Once the required level of support has been achieved, the directors will proceed with the formal stages of the RTM process and keep all members informed of progress throughout.

St David's Square is made up of several buildings, each with its own legal structure and lease arrangements. Under the Commonhold and Leasehold Reform Act 2002, the Right to Manage can only be exercised by the leaseholders of the building (or buildings) that qualify under the legislation.

For this reason, it has been necessary to establish six separate RTM Companies, each responsible for a specific group of buildings within the development.

Although each RTM Company is a separate legal entity, they are all working together as part of a coordinated St David's Square RTM campaign. The founding directors and HAUS Block Management are working collaboratively to ensure a consistent approach across the entire estate wherever possible.

This structure allows each RTM Company to comply with the legal requirements while working together to achieve the shared objective of improving the management of St David's Square for the benefit of all residents.

No. Becoming a member of the RTM Company does not mean that you are volunteering to become a director.

Most members simply support the RTM Company by joining and exercising their voting rights. Directors are elected by the members and are responsible for overseeing the company on behalf of the wider membership.

You are welcome to stand for election as a director in the future if you wish, but there is no obligation to do so.

The first directors of the RTM Company are the volunteer founders who have taken the initiative to establish the company and commence the Right to Manage process. As there is no existing mechanism for all leaseholders to elect a board before the RTM Company has been formed, these individuals have volunteered to undertake this initial role on behalf of the wider community.

Until the Right to Manage process is successfully completed, the directors' primary responsibility is to coordinate the campaign, communicate with leaseholders and guide the company through the statutory process.

Once the RTM Company has acquired the Right to Manage, members will have the opportunity to elect the directors who will represent them and oversee the future management of the company, in accordance with the company's Articles of Association.

The directors of an RTM Company have the same general legal duties as the directors of any company. These duties are set out in company law and have been developed through legislation and the courts over many years.

The principal responsibilities include:

Acting in the Company's Best Interests

Directors must always act honestly, in good faith and in the best interests of the RTM Company and its members. They must avoid conflicts of interest and declare any potential conflicts if they arise.

Exercising Reasonable Care, Skill and Diligence

Directors are expected to exercise reasonable care, skill and diligence when carrying out their responsibilities, taking account of their own knowledge and experience.

Complying with Legal and Statutory Duties

Directors must ensure that the RTM Company complies with its legal obligations, including those under the Companies Act 2006 and the company's Articles of Association.

What does this mean in practice?

In most RTM Companies, the day-to-day management of the building is delegated to a professional managing agent. The directors' role is therefore primarily one of oversight and governance rather than day-to-day administration.

This typically includes:

• Appointing and overseeing the managing agent.

• Approving budgets and major expenditure.

• Monitoring performance and service standards.

• Making decisions in the best interests of members.

• Ensuring the company meets its legal obligations.

To provide additional protection, the RTM Company will normally maintain Directors' and Officers' (D&O) Liability Insurance, which is designed to protect directors against eligible claims arising from the proper performance of their duties.

No. The role of an RTM director is entirely voluntary.

Directors do not receive a salary, fee or other remuneration for carrying out their duties. They are leaseholders who volunteer their time to represent the interests of the RTM Company and its members.

Reasonable out-of-pocket expenses incurred on behalf of the RTM Company may be reimbursed where appropriate and approved by the Board, but directors do not receive payment for acting as directors.

The directors share a common objective: to act in the best interests of the RTM Company and its members, ensuring that the building is professionally managed, services are delivered to a high standard and service charge funds are spent wisely.

The Board is responsible for setting the strategic direction of the RTM Company and overseeing the performance of the managing agent. The day-to-day management of the building is delegated to the managing agent, while the directors provide governance, oversight and decision-making on behalf of the members.

A professional managing agent will support the Board by providing expert advice, ensuring legal and regulatory compliance, and helping directors fulfil their responsibilities effectively.

The RTM Company is accountable to its members. Directors are required to act in accordance with company law and the company's Articles of Association, and members have the right to participate in the governance of the company by attending general meetings, voting on key matters and electing directors.

Good communication and transparency are essential to the success of any RTM Company. The Board is committed to keeping members informed through regular updates, publishing Board meeting minutes where appropriate, and holding periodic meetings with members to discuss the management of the estate and future priorities.

The RTM Board's primary role is to appoint and oversee a professional managing agent to manage the day-to-day operation of the estate on behalf of the RTM Company.

The relationship between the RTM Company and the managing agent will be governed by a Management Agreement, which will clearly set out the scope of services, responsibilities, performance expectations and reporting requirements.

One of the key advantages of Right to Manage is that the RTM Company has the freedom to appoint the managing agent it believes is best placed to deliver a high-quality service and good value for money. The Board can also review the appointment periodically and, if appropriate, re-tender the management contract to ensure standards remain high and fees remain competitive.

The Board will work closely with the managing agent, focusing on strategic oversight rather than day-to-day management. This includes reviewing budgets, monitoring service standards, approving major expenditure and ensuring that the managing agent is delivering the level of service expected by residents.

To promote accountability, the RTM Company intends to agree clear Key Performance Indicators (KPIs) with the managing agent and regularly review performance against those measures. This will help ensure that service delivery remains transparent, responsive and focused on the needs of residents.

The RTM Board will work with the managing agent to ensure that service charge funds are spent responsibly, transparently and in the best interests of all leaseholders.

To enable the efficient day-to-day management of the estate, the Board will agree an appropriate spending authority for routine maintenance and unforeseen repairs. Expenditure above this agreed threshold will require Board approval before works are instructed, except where immediate action is necessary to protect the building, its residents or to comply with legal obligations.

For qualifying major works, the RTM Company will continue to comply with the statutory Section 20 consultation requirements and the terms of the leases. Leaseholders will be consulted in the usual way before works are carried out where the legislation requires this.

The Board and managing agent will also seek to obtain competitive quotations where appropriate, carefully review proposed expenditure and prioritise works based on safety, legal obligations, the condition of the building and the long-term interests of residents. The objective is to deliver high standards of maintenance while ensuring service charge funds provide the best possible value for money.

No payment is required upfront, so there would be nothing to reimburse. The £95 + VAT per flat will only be invoiced once the RTM process has completed and a full handover from the current managing agent has taken place. If the claim is unsuccessful, this fee will not be payable.

Additional costs could arise if the freeholder challenges the claim and we need legal advice or expert evidence to respond. For example, an engineer’s report may be needed to demonstrate that the underground car park forms one continuous structure.

Based on previous experience, such a report could add approximately £5–£10 per flat. If the claim proceeds to the tribunal, legal fees could add a further £5–£10 per flat.

HAUS would fund these costs upfront, and they would form part of the no-win, no-fee arrangement. They would therefore only be recoverable from leaseholders if the claim succeeds, subject to the overall cap below.

HAUS have undertaken their own due diligence, as HAUS is taking the financial risk if the claims fail. We are confident that the way the RTM companies and claims have been structured will minimise the scope for valid objections, although we cannot guarantee that the claims will not be challenged.

The RTM Company is a company limited by guarantee. As an ordinary member, your liability to contribute towards its debts if it is wound up is limited to £1. Membership alone does not make you a director or give you a director’s responsibilities.