The Broomfield Road* case concerned whether or not a single RTM company can claim the right to manage more than one block, and the ruling seems clear: an RTM co may not manage more than one self-contained block or building.
In this case, the RTM company had claimed the right to manage over more than one block of flats on the estate. The freeholder contested this, stating that an RTM company could only acquire the management of one building.
The Upper Tribunal found in favour of the RTM company and the freeholder was given permission to take the case to the Court of Appeal.
The Court of Appeal found in favour of the freeholder. The right to manage definition in the legislation is singular – ‘a building’ – meaning that an RTM company can only claim the right to manage one building. In reaching the decision, the Court of Appeal considered that:
- The purpose of RTM is to give leaseholders the right to take control of the management of their building. If an RTM company acquired the right to manage over a development with blocks of different sizes, this could adversely affect leaseholders in the smaller block(s).
- Allowing multiple premises to be included in an RTM claim could potentially result in a freeholder setting up a right to manage company with developments all over the country, in order to prevent the leaseholders from making a right to manage claim.
Right to manage one block rule
The right to manage therefore now only applies to a single block, or self-contained part of a block, and not to a number of blocks, whether these blocks are located on the same estate or in completely different geographical locations.
For estates with multiple blocks – regardless of their similarity or physical proximity – each block must now make a separate claim for the right to manage and set up its own RTM company.
A practical solution?
Where individual RTM companies do acquire the right to manage on an estate with multiple blocks, there is potentially a practical solution to the ongoing management. Each individual RTM company can delegate management to a third party managing agent or by nominating one of the RTM companies to take the lead role. This would at least make the ongoing management process a little more straightforward, assuming agreement can be reached between the parties.
For expert help with Right to Manage, contact the specialists at Brady Solicitors.
Considering applying for the Right to Manage? Download for free this sample Right to Manage Claim Notice to see the information that is required when making an RTM claim.
*Triplerose Ltd v 90 Broomfield Road RTM Co Ltd [2015]
