After the right to manage.
In short
On the acquisition date the landlord's management functions under the leases pass to the RTM company. The old landlord or manager must pay over the uncommitted service charge money on that date or as soon after as is reasonably practicable, and must provide the information the company asks for within 28 days of its notice. The company cannot charge leaseholders for costs incurred before it took over.
What changes on the acquisition date?
The management functions the landlord had under the leases pass to the RTM company, under section 96 of the Commonhold and Leasehold Reform Act 2002: repairs, services, the service charge and usually insurance. Two things stay with the landlord: re-entry and forfeiture, and matters that concern only a flat not let to a qualifying tenant.
What must the old landlord or manager hand over?
Whatever information the company reasonably needs to manage, if the company asks for it by notice under section 93. They must comply within 28 days of the notice, though nothing can be required before the acquisition date. Ask for it in writing and list it: the leaseholders and their shares, the accounts and current budget, the insurance schedule, the fire risk assessment and every certificate, the contracts, any Section 20 consultation under way, and keys and codes.
What happens to the service charge money?
Under section 94, whoever held it must pay the company the accrued uncommitted service charges: what was collected, and any investments and interest on it, less what is needed for costs incurred before the acquisition date. It is due on the acquisition date or as soon after as is reasonably practicable. If the two sides cannot agree the amount, either can ask the First-tier Tribunal to decide it.
What about the existing contracts?
Section 92 requires the landlord or manager to tell each contractor that an RTM company is taking over, and to give the company notice of each contract, with the contractor's details. Use those notices as the list: decide which services to keep, which to put out again, and tell each contractor who now instructs them.
Can we charge for costs from before we took over?
No. Section 97 says service charges are not payable to the RTM company for costs incurred before the right to manage was acquired. Arrears from before the acquisition date may belong to the old landlord, so take advice before chasing them.
What should the board do in the first weeks?
Open a bank account in the company's name for the service charge, which is held on trust, and tell every leaseholder the new payment details in writing. Confirm the building is insured from day one. Check what is overdue, starting with the fire risk assessment. Then set the budget and issue demands that name the freeholder as landlord, give an address for notices and carry the summary of rights.
Where Servanda comes in
Drop the handover into Servanda and it reads it: flats and shares, balances, the budget, the contractors and every certificate are offered up for a director to confirm, with a warning that arrears from before the acquisition date may be the old landlord's. Then the first demands go out with everything the law requires on them.
Manage your own block or estateThe law
- Commonhold and Leasehold Reform Act 2002, Part 2, Chapter 1 (right to manage)
- Commonhold and Leasehold Reform Act 2002, section 92 (notices of contracts)
- Commonhold and Leasehold Reform Act 2002, section 93 (duty to provide information)
- Commonhold and Leasehold Reform Act 2002, section 94 (accrued uncommitted service charges)
- Commonhold and Leasehold Reform Act 2002, section 96 (management functions)
- Commonhold and Leasehold Reform Act 2002, section 97
- Landlord and Tenant Act 1987, section 42
The legislation is the authority; this page is a plain summary for England, checked on 2026-11-02. Wales and Scotland have their own rules. Take advice on any particular building.