Guidance

About flat management companies, RTM companies and commonhold associations

Updated 5 July 2024

Applies to England, Northern Ireland and Wales

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This publication is licensed under the terms of the Open 바카라 사이트 Licence v3.0 except where otherwise stated. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.

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This publication is available at /government/publications/flat-management-and-right-to-manage-rtm-companies/about-flat-management-companies-rtm-companies-and-commonhold-associations

1. Flat management companies

A flat management company is set up to manage a property divided into a number of separate flats.

Each flat owner usually has a lease of their own flat. But they can also be a member of a management company that owns the freehold (or lease) of the entire building.

Each flat owner is a member of the company. This means the flat owners have their say in running the building.

If the members own shares in the company, they usually transfer their shares to the new owners when they sell their flat. It바카라 사이트™s common practice to have this condition in the company바카라 사이트™s articles of association. This makes sure that the limited company represents the interests of all the current flat owners. It also means the company remains a separate legal entity, regardless of who holds its shares.

Leaseholders can also set up an RTM limited company. This gives them the 바카라 사이트˜right to manage바카라 사이트™ the building they live in.

A limited company can also be set up to own and manage the common parts of a development, made up of separate units under 바카라 사이트˜commonhold바카라 사이트™. This type of company is called a commonhold association.

Property management law is different in Scotland. Read the .

2. Right to manage (RTM) companies

RTM companies allow long leaseholders in blocks of flats to take over the management of their building.

Leaseholders must set up a limited by guarantee company to carry out the management functions.

The constitutional rules of an English RTM company are set out in . These rules apply to all existing and proposed RTM companies.

RTM companies do not exist in Scotland, or Northern Ireland.

3. How to register (incorporate) a flat management or RTM company

You can register your company online. It costs £50 and there are built-in checks to help you avoid errors.

Your application must include:

An RTM company must also:

  • have a name ending 바카라 사이트˜RTM Company Limited바카라 사이트™ (or the Welsh equivalent)
  • be limited by guarantee

You can also register your company by post - but it takes longer to process postal applications.

4. Commonhold associations

Commonhold is a form of freehold land ownership, which is an alternative to long leasehold ownership of flats and other interdependent properties. It combines freehold ownership of a single property (a unit) in a larger development, with membership of a limited company that owns and manages the common parts of the development.

For example, a block of flats where each flat is a unit - and all other parts (such as the hallway) are commonhold.

The constitutional rules of commonhold associations registered in England and Wales, are set out in .

Commonhold associations do not exist in Scotland or Northern Ireland.

4.1 How to register a commonhold association company

You must register your company by post. The name of your company must end with 바카라 사이트˜Commonhold Association Limited바카라 사이트™ (or the Welsh equivalent).

To register by post, it costs £71 and you바카라 사이트™ll need to send us:

  • and the correct fee
  • memorandum of association
  • bespoke articles of association (you must tick option 3 in section A7 of the form IN01)
  • additional information if using a sensitive word or expression

The postal address and payment instructions are on the form.

It takes longer to process postal applications.

5.  More information

RTM companies and commonhold associations were introduced under the .

The (LEASE) provides free legal advice on residential leasehold property in England and Wales. Their website includes advice and contact information.

The is responsible for RTM companies in England.

The Welsh 바카라 사이트 is seeking to introduce amended regulations for Welsh RTM companies in Wales as soon as possible. For more information, email alyn.williams@wales.gsi.gov.uk or call 01685 729191.

is responsible for commonhold associations.

provides free legal advice on residential leasehold property in England and Wales.

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