Supreme Court rules on right to manage regime (FirstPort v Settlers Court)

Article summary

Property analysis: The court was asked to consider the construction of the 'right to manage' provisions contained in the Commonhold and Leasehold Reform Act 2002 (CLRA 2002). Specifically, it had to determine to what extent (if any) a right to manage (RTM) company in respect of a single building on a wider estate acquires the right to manage the wider estate facilities that are shared with the leaseholders of other buildings on the estate. The court held that an RTM company acquires only the right to manage the relevant premises together with nearby physical property over which the occupants of the relevant building have exclusive rights. In doing so, it overruled the existing Court of Appeal authority on this issue: Gala Unity Ltd v Ariadne Road RTM Co Ltd ('Gala'). The decision will come as a great relief to those living on and managing large estates, providing a much clearer demarcation in responsibility between RTM companies and existing managers and...