Landmark Ruling on Right to Manage

A recent ruling in the Upper Tribunal in the Lands Chamber has clarified the interpretation of the law in regards to Right to Manage (RTM). The decision made states that a single company can exercise the RTM on more than just one building, and a single claim notice can be used to exercise this RTM claim.

The ruling was made after a case was brought concerning four blocks of flats. In each block, the owners and occupiers of properties had formed their own RTM company, but had not been allowed to exercise their Right To Manage in practical terms.

The Judge of the Upper Tribunal who heard the case and gave the judgement was Siobhan McGrath, who normally hears cases in the First-tier Tribunal. Her aim was to give a more practical interpretation to parts of the Commonhold and Leasehold Reform Act 2002, and stated in the ruling that the Act did not put any limits of the number of buildings, or parts of those buildings, to which the Right To Manage applies.

The case was brought by lawyers for three of the freeholders concerned. The lawyers had argued that as the legislation had the word “a” before “self-contained building”, then the interpretation should be that the Act referred to one single building only. This argument was rejected in the Judge’s ruling.

This decision has clarified how the Act should be interpreted, and this ruling may give the green light to more flat owners to exercise their Right to Manage.

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