The costs of acquiring RTM fall into two categories: (a) the costs of the RTM Company itself in complying with its own obligations under the law; and (b) the costs of the freeholder and head leaseholders in dealing with the claim for RTM made by the RTM Company
Until very recently an RTM Company had to reimburse the freeholder and any headleaseholders for their resonable costs of dealing with an RTM claim. Such costs might have included taking legal advice on whether the claim was valid, verifying that supporters of the claim were qualifying tenants and ensuring that all paperwork had been properly completed and served.
Section 50 of the Leasehold & Freehold Reform Act 2025 (LFRA24) now provides that in general RTM Companies and their members are no longer liable for the costs of freeholders and headleaseholders in dealing with RTM claims.