> ## Documentation Index
> Fetch the complete documentation index at: https://kb.manage.management/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> UK residential property management terminology explained

## Property Ownership

<AccordionGroup>
  <Accordion title="Freehold">
    Outright ownership of land and any buildings on it, with no time limit. The freeholder owns the property indefinitely.
  </Accordion>

  <Accordion title="Leasehold">
    Ownership of a property for a fixed period of time (the lease term), typically 99-999 years. The leaseholder owns the property but not the land it sits on.
  </Accordion>

  <Accordion title="Share of Freehold">
    When leaseholders collectively own the freehold of their building, usually through a company. Each leaseholder owns a share of the freehold company.
  </Accordion>

  <Accordion title="Commonhold">
    A form of property ownership where you own your flat outright (not leasehold) and share ownership of common areas with other owners.
  </Accordion>
</AccordionGroup>

## Management Structures

<AccordionGroup>
  <Accordion title="RTM (Right to Manage)">
    A legal right allowing leaseholders to take over management of their building from the freeholder without proving fault. Introduced by the Commonhold and Leasehold Reform Act 2002.
  </Accordion>

  <Accordion title="RMC (Resident Management Company)">
    A company owned by the leaseholders that manages the building. Often set up when the freehold is purchased collectively.
  </Accordion>

  <Accordion title="Managing Agent">
    A professional company hired to handle day-to-day management of a building, including maintenance, accounts, and compliance.
  </Accordion>

  <Accordion title="Freeholder">
    The owner of the freehold (the land). In leasehold buildings, the freeholder grants leases and often manages the building or appoints a managing agent.
  </Accordion>
</AccordionGroup>

## Financial Terms

<AccordionGroup>
  <Accordion title="Service Charge">
    Annual charges paid by leaseholders to cover the cost of maintaining common areas, buildings insurance, and other shared expenses.
  </Accordion>

  <Accordion title="Ground Rent">
    An annual payment made by leaseholders to the freeholder as specified in the lease. Recent legislation limits ground rent on new leases.
  </Accordion>

  <Accordion title="Reserve Fund (Sinking Fund)">
    Money set aside from service charges to pay for major future works like roof replacement or lift refurbishment.
  </Accordion>

  <Accordion title="Section 20 Consultation">
    Legal requirement to consult leaseholders before carrying out qualifying works costing more than £250 per leaseholder.
  </Accordion>
</AccordionGroup>

## RTM Process

<AccordionGroup>
  <Accordion title="Claim Notice">
    The formal notice served on the freeholder to exercise the Right to Manage. Must be signed by the RTM company.
  </Accordion>

  <Accordion title="Counter-Notice">
    The freeholder's response to a claim notice, which may accept or dispute the RTM claim.
  </Accordion>

  <Accordion title="Acquisition Date">
    The date when management responsibility transfers to the RTM company, typically 3 months after the claim notice.
  </Accordion>

  <Accordion title="Qualifying Tenant">
    A leaseholder with a long lease (originally over 21 years) who can participate in RTM.
  </Accordion>
</AccordionGroup>

## Legal & Compliance

<AccordionGroup>
  <Accordion title="First-tier Tribunal (FTT)">
    The court that handles disputes about service charges, lease terms, and property management. Formerly the Leasehold Valuation Tribunal.
  </Accordion>

  <Accordion title="RICS (Royal Institution of Chartered Surveyors)">
    Professional body that sets standards for property management. RICS-qualified managers follow a code of practice.
  </Accordion>

  <Accordion title="Section 42 Notice">
    A formal notice served by a leaseholder to request a lease extension.
  </Accordion>

  <Accordion title="Building Safety Act 2022">
    Legislation introducing new safety requirements for residential buildings, particularly those over 18 metres.
  </Accordion>
</AccordionGroup>

## Common Abbreviations

| Abbreviation | Meaning                                    |
| ------------ | ------------------------------------------ |
| RTM          | Right to Manage                            |
| RMC          | Resident Management Company                |
| FTT          | First-tier Tribunal                        |
| RICS         | Royal Institution of Chartered Surveyors   |
| S20          | Section 20 Consultation                    |
| LVT          | Leasehold Valuation Tribunal (now FTT)     |
| ARMA         | Association of Residential Managing Agents |
| CML          | Council of Mortgage Lenders                |