---
title: "Right to Manage Costs: What You Will Actually Pay in 2026"
url: https://manage.management/blog/right-to-manage-costs-what-you-will-actually-pay-in-2026
description: "A full breakdown of Right to Manage costs in 2026: company formation, solicitor fees, freeholder costs, ongoing running costs and how to cut them."
author: "Franklin Baeza"
published: 2026-09-17T13:20:08.293Z
updated: 2026-10-29T12:33:51Z
categories: ["Right to Manage"]
publisher: Manage.Management
language: en-GB
---

# Right to Manage Costs: What You Will Actually Pay in 2026

A full breakdown of Right to Manage costs in 2026: company formation, solicitor fees, freeholder costs, ongoing running costs and how to cut them.

Right to Manage costs are one of the first things leaseholders ask about when they start looking into taking control of their building's management. The honest answer is that the total varies considerably — depending on block size, how much legal work you need, and how efficiently you run the process. This article breaks down every cost category you are likely to face in 2026, from solicitor fees to tribunal applications, so you can plan realistically rather than be caught out halfway through.

## Key takeaways

- The main RTM costs are company formation, professional fees and any freeholder costs you must cover.
- Since 3 March 2025, RTM companies generally no longer pay the landlord's non-litigation costs.
- Ongoing costs include insurance, accounts, directors' cover and either an agent or software.
- A guided toolkit can cut the professional fees substantially for straightforward claims.

> **This article is general information, not legal advice.** The Right to Manage (RTM) process is governed by the Commonhold and Leasehold Reform Act 2002 (CLRA 2002), as modified by the Leasehold and Freehold Reform Act 2024 and the 2026 rule changes. Your specific costs and eligibility will depend on your lease terms, building structure, and individual circumstances. Consult a solicitor for advice on your situation.

## Why RTM Costs Are Hard to Pin Down

Most guides quote a single figure. The problem is that RTM costs are not a single figure — they are the sum of several distinct categories, each of which scales differently and each of which you can influence to varying degrees.

The three main variables are: how many qualifying leaseholders participate, whether the freeholder accepts the claim or disputes it, and how much of the process you hand to a solicitor versus handle yourself. A straightforward claim on a 10-flat block with a co-operative freeholder can cost a few hundred pounds. A contested claim on a mixed-use building that ends up at the First-tier Tribunal (Property Chamber) can run into several thousand.

Understanding the cost structure is the first step to managing it.

## The Statutory Costs You Cannot Avoid

### Company Formation and the Claim Notice

Before you can serve a claim notice, you need an RTM company. Incorporating a private company limited by guarantee at Companies House costs £50 online as of 2026. That is unavoidable.

The claim notice itself carries no filing fee. What costs money is drafting it correctly. A defective notice can be challenged by the freeholder — wasting time and potentially requiring you to start again. Most leaseholders either pay a solicitor to draft the notice or use a guided toolkit that walks them through the statutory requirements.

### Tribunal Fees if the Claim Is Disputed

If the freeholder serves a counter-notice disputing your right to manage, you may need to apply to the First-tier Tribunal (Property Chamber) in England, or the Leasehold Valuation Tribunal in Wales. Application fees vary by case type, but budget at least £100 to £300 for the application itself. Hearing fees are additional.

The freeholder cannot recover their legal costs from you simply by disputing the claim. The tribunal has limited powers to award costs, and in practice most RTM disputes do not result in a costs order against leaseholders. If the tribunal finds your application was frivolous or unreasonably made, costs can be awarded — but this is rare.

## Solicitor Fees: The Biggest Variable

Solicitor fees are typically the largest single line item in RTM costs, and they vary significantly by firm and by how much of the process you hand over to them.

A full-service engagement — covering company formation, eligibility checks, drafting the invitation to participate, drafting the claim notice, and managing any counter-notice response — typically costs between **£1,500 and £4,000** for a straightforward residential block in 2026. Larger blocks or those with mixed-use complications sit at the higher end or beyond it.

Some solicitors offer fixed-fee RTM packages. Others bill hourly, which makes costs harder to predict. Always ask for a written estimate and clarify what is included before instructing anyone.

### What You Can Do Without a Solicitor

CLRA 2002 does not require solicitor involvement as a matter of law. Leaseholders can, in principle, run the entire process themselves. In practice, the risk of a defective notice or an incorrectly constituted RTM company is real — and the cost of getting it wrong often exceeds the cost of getting it right the first time.

The practical middle ground is to use a solicitor for the parts of the process that carry genuine legal risk, particularly the claim notice and any tribunal response, while handling the administrative and organisational steps yourself.

## Survey and Professional Fees

Some leaseholders commission a surveyor or property consultant to assess the building's condition before taking over management. This is not a statutory requirement for RTM, but it is sensible due diligence. If you are about to take responsibility for a building's maintenance and service charge budget, knowing what you are inheriting matters.

A condition survey for a small-to-medium residential block typically costs between **£500 and £1,500** depending on block size and surveyor. It is optional — but worth considering if the building has been under-maintained.

## Participation Costs: Reaching the 50% Threshold

RTM requires participation from at least 50% of qualifying leaseholders. Reaching that threshold has its own costs — mostly in time and communication rather than hard cash, but there are practical expenses involved.

Sending formal invitations to participate by recorded post, holding a residents' meeting, and chasing non-responsive leaseholders all take time. Where leaseholders are absentee landlords or simply disengaged, reaching the threshold can be a significant organisational effort.

Disorganised campaigns that rely on WhatsApp groups and informal emails tend to take longer and cost more in wasted effort than those built around a clear workflow from the start.

## The Freeholder's Costs: What You May Be Required to Pay

This is the part of RTM costs that surprises many leaseholders. Under CLRA 2002, you are not automatically liable for the freeholder's legal costs simply by making a claim. However, once the RTM company acquires the right to manage, you may be required to pay the freeholder's reasonable costs of the process.

Those costs are typically recovered through the service charge — meaning leaseholders end up paying them indirectly. They can include the freeholder's solicitor fees for reviewing and responding to the claim notice, and any reasonable administrative costs incurred in transferring management.

There is no statutory cap on what "reasonable" means here, which is why some RTM campaigns face unexpected bills after a successful claim. Getting a clear picture of the freeholder's likely costs before you serve the notice is worth doing, particularly if the relationship is adversarial.

## Ongoing Costs After You Acquire the Right to Manage

The RTM process has a defined end point, but the costs do not stop when you acquire the right to manage. The RTM company becomes responsible for managing the block — which means taking on the operational costs that the previous managing agent was covering.

These include:

- **Managing agent fees**, if you appoint a professional agent (typically £3 to £6 per unit per month, though rates vary by region and scope)
- **Accountancy fees** for preparing annual service charge accounts
- **Buildings insurance procurement**
- **Company secretarial costs** for maintaining the RTM company at Companies House
- **Ongoing maintenance and repair costs**, drawn from the service charge fund

If you are self-managing rather than appointing an agent, the cash cost is lower but the time cost is higher. Resident directors who self-manage typically spend several hours per month on building administration — more during major works or disputes.

Understanding how service charge budgets are structured before you take over management is important. [How service charge budgets are set and what leaseholders can do if they have questions](https://manage.management/blog/how-service-charge-budgets-are-set-and-what-leaseholders-can-do-if-they-have-questions) on the Manage.Management blog is a useful starting point.

## How Block Size Affects Total Cost

The per-leaseholder cost of RTM falls significantly as block size increases, because fixed costs — particularly solicitor fees and company formation — are spread across more contributors.

For a rough illustration:

- **6-flat block:** Solicitor fees of £2,000 split six ways is £333 per leaseholder, before other costs
- **20-flat block:** The same fees split twenty ways is £100 per leaseholder
- **40-flat block:** Fixed costs become relatively minor per head; the bigger challenge is reaching the 50% participation threshold

Larger blocks also tend to face more complex eligibility questions, particularly where there are commercial units in the building. Mixed-use buildings — residential flats above shops, for example — have specific rules under CLRA 2002 about the proportion of floor area that can be non-residential. The 2026 RTM rule changes have adjusted some of these thresholds, so if your building has any commercial element, check current eligibility rules carefully.

## The RTM Toolkit Option: A Lower-Cost Route

For leaseholders who want to run the RTM process themselves without full solicitor engagement, a guided toolkit is a practical alternative for the organisational and procedural steps.

Manage.Management offers an RTM toolkit as part of its platform. It guides leaseholders through the statutory process under CLRA 2002, from eligibility assessment through to serving the claim notice. The one-off fee is **£200**, reducing by £50 for each leaseholder email invited through the platform, down to a minimum of **£50**. On a 6-flat block where all leaseholders participate, the fee comes down to £50.

This does not replace legal advice on complex eligibility questions or contested claims, but it significantly reduces the administrative cost and organisational effort for blocks where the claim is straightforward. The platform also covers ongoing management after RTM is acquired — service charge tracking, document storage, issue management, and leaseholder voting.

More detail is available at [manage.management](https://manage.management).

## What the 2026 RTM Rule Changes Mean for Costs

The Leasehold and Freehold Reform Act 2024 and the 2026 RTM rule changes have modified several aspects of the process in ways that affect cost. The most significant relate to eligibility thresholds for mixed-use buildings and the procedural requirements for the claim notice.

The direction of travel is broadly positive for leaseholders. More buildings now qualify for RTM than under the original 2002 rules, which means the fixed costs of the process are accessible to a wider group. Some procedural requirements that were previously a source of dispute have also been clarified — which should reduce the risk of defective notices and the cost of starting again.

For a broader view of how leasehold reform is reshaping building management, [leasehold reform, commonhold and the future of building management](https://manage.management/blog/lafra-by-rics-podcast-jan-2025) covers the direction of legislative change and what it means in practice.

## A Realistic Cost Summary for 2026

Pulling the categories together, here is a realistic range for a straightforward residential block:

**One-off process costs:**

- Companies House incorporation: £50
- Solicitor fees (full service): £1,500 to £4,000, or significantly less if using a guided toolkit for the administrative steps
- RTM toolkit (if used): £50 to £200 depending on leaseholder participation
- Surveyor (optional, pre-acquisition condition survey): £500 to £1,500
- Tribunal fees (if claim is disputed): £100 to £300 or more

**Freeholder's reasonable costs:** Variable; often recoverable through the service charge post-acquisition.

**Ongoing annual costs post-RTM:**

- Managing agent (if appointed): £3 to £6 per unit per month, varying by region and scope
- Accountancy: typically £500 to £1,500 per year for a small block
- Companies House confirmation statement: £34 per year (online filing, 2026 rate)

For a clean claim on a 10-flat block — using a solicitor for the notice only and a toolkit for the rest — the total one-off cost sits realistically in the **£1,000 to £2,500** range split across participating leaseholders. A fully contested claim with tribunal involvement can push well beyond that.

## Reducing RTM Costs Without Cutting Corners

The most effective ways to keep costs down are also the most obvious: get leaseholder participation organised early, use a solicitor only where legal risk is genuine, and make sure the claim notice is correct the first time.

Disorganised campaigns are expensive. Chasing leaseholders who have not responded, reissuing notices, or dealing with a counter-notice that better preparation might have avoided — all of it adds to the bill. A clear process, documented from the start, reduces the likelihood of those costs materialising.

Once the RTM company has acquired the right to manage, the cost question shifts to how efficiently the block is run. Resident directors who use a shared platform to track service charges, maintenance issues, and leaseholder decisions tend to spend less time on administration and face fewer disputes than those relying on email chains and shared folders. The [cost of block management software in the UK](https://manage.management/blog/how-much-does-block-management-software-cost-in-the-uk) is often lower than people expect, particularly for smaller blocks.

## Frequently asked questions

### What are the typical RTM costs for a small block in 2026?

For a straightforward claim on a 6 to 12 flat block, total one-off costs typically fall between £1,000 and £3,000 — depending on solicitor fees, whether the claim is contested, and how much of the process leaseholders handle themselves. Splitting costs across participating leaseholders brings the per-person figure down considerably.

### Do leaseholders have to pay the freeholder's legal costs?

Not automatically during the claim process. Once the RTM company acquires the right to manage, however, the freeholder's reasonable costs are often recoverable through the service charge. There is no statutory cap on "reasonable", so it is worth trying to understand the freeholder's likely costs before serving the claim notice.

### Can leaseholders run the RTM process without a solicitor?

Yes, legally. CLRA 2002 does not require solicitor involvement. In practice, the risk of a defective claim notice or incorrectly constituted RTM company is significant enough that most leaseholders use a solicitor for at least the notice drafting stage. Guided toolkits can reduce the administrative cost while still flagging where legal advice is genuinely needed.

### What happens to costs if the freeholder disputes the claim?

A disputed claim adds tribunal application fees — typically £100 to £300 or more — and potentially additional solicitor fees for preparing the tribunal response. The tribunal rarely awards costs against leaseholders unless the application was clearly without merit, but the process takes longer and costs more than an uncontested claim.

### How do the 2026 rule changes affect eligibility and costs?

The 2026 changes, building on the Leasehold and Freehold Reform Act 2024, have extended eligibility to more buildings — particularly mixed-use blocks that previously fell outside the RTM rules. More leaseholders can now access the process, spreading fixed costs across a broader group. Some procedural requirements have also been clarified, which should reduce the risk of defective notices.

### Is the RTM company responsible for ongoing costs after acquisition?

Yes. Once the RTM company acquires the right to manage, it takes on responsibility for the block's management — including service charges, maintenance, insurance, and company secretarial obligations. These ongoing costs are separate from the one-off process costs and need to be budgeted for independently.

### What is the cheapest realistic way to run an RTM claim in 2026?

The lowest-cost route combines self-organisation to reach the 50% participation threshold, a guided toolkit for the procedural steps, and a solicitor engaged only to review and sign off the claim notice. On a 6-flat block where all leaseholders participate, this approach can bring the total one-off cost below £1,000 — though that depends on the freeholder not disputing the claim.

RTM costs are manageable if you understand what you are paying for and why. The process has real fixed costs — particularly solicitor fees and the risk of a contested claim — but most of those costs are within your control. Getting organised early, reaching the participation threshold efficiently, and using the right tools for each stage of the process are the practical levers available to you.

Last reviewed: 29 October 2026 by Franklin Baeza, Manage.Management. This article is general information for England and Wales, not legal advice. Check the current position with a qualified adviser before acting.

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Source: [Right to Manage Costs: What You Will Actually Pay in 2026](https://manage.management/blog/right-to-manage-costs-what-you-will-actually-pay-in-2026) on the Manage.Management blog.