The following Property guidance note provides comprehensive and up to date legal information covering:
To acquire the right to manage under Commonhold and Leasehold Reform Act 2002 (CLRA 2002), the right to manage company (RTM company) must serve a claim notice on the persons specified in CLRA 2002, s 79(6), namely:
the landlord(s) of the premises
any third party to any of the flat leases (eg a guarantor)
any manager of the premises who has been appointed under Part II of the Landlord and Tenant Act 1987 (LTA 1987)
In Elim Court, the conclusion of the Upper Tribunal (Lands Chamber) (UT) that the claim notice ought to have been served on the relevant intermediate landlord was not challenged. The only issue in the Court of Appeal was what consequences attached to that failure.
The Court of Appeal decided that the failure to serve the notice on the intermediate landlord of a single flat with no management responsibilities did not invalidate the notice. The court considered that it was important to note that the primary persons affected by the acquisition of the right to manage are those with management responsibilities. While an intermediate landlord with no management responsibilities will lose the sole right to give consents under the lease, it retains the right to be consulted and also has the right to object. It also retains the right to enforce covenants in the lease
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