If you are considering RTM, you need to first check that your building and lease qualify for the right:
- Is the property a flat? (RTM does not apply to houses).
- Is the building purpose built? (If the property is converted into flats, RTM does not apply).
- Are there more than four flats in the building? (RTM does not apply if there are four flats or less).
- Is one of the flats occupied by the freeholder or a member of their immediate family? If so, and they have lived there for over 12 months, the RTM does not apply.
- Are at least two-thirds of the other occupants on leases where the original term was over 21 years? Tenants with these leases are then known as ‘qualifying tenants’.
- If there is a commercial element to the building, does it exceed 25% of the total floor area? (RTM does not apply if it does exceed).
- If your building qualifies, the minimum number of ‘qualifying tenants’ required must be half of the number of flats in the building e.g. If the property has 10 flats then 5 qualifying members are required – do you have those on board?
If you believe your building qualifies and you want to find out more about setting up a RTM company, Emsleys’ Commercial team can help. Contact Angela Macready on 0113 201 4900 for a free initial consultation and no obligation quote.Back to Blog