Q&As

RTM setup and legal costs: Service charge eligibility?

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Published by a LexisNexis Property expert
Published on: 28 July 2017

Can the cost of setting up the RTM Company and legal costs in having a solicitor assist with the statutory procedure to bring about a RTM be treated as a service charge? If not, other than a participation agreement, how can the active participants ensure that all in the block contribute towards the cost?

RTM Company

The (right to manage) RTM is a statutory construct by virtue of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002).

CLRA 2002, s 88(1) provides that in consequence of a claim notice given by the RTM company, the company is liable for the reasonable costs incurred by:

  1. •

    a landlord under a lease of the whole or any part of the premises

  2. •

    a party to such a lease otherwise than as landlord

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Jurisdiction(s):
United Kingdom
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