Since its introduction by the Commonhold and Leasehold Reform Act 2002, many leaseholders have acquired the right to manage their block. By acquiring the right to manage, leaseholders get the right to perform the “management functions” in place either of the landlord or any other person upon whom management rights are conferred under the terms of the leases of the flats.
But often a block of flats forms part of a wider estate, containing other blocks of flats or houses. And there’s likely to be shared facilities or amenities. These so-called estate facilities will be managed either by a common landlord or other third party, and the associated costs recovered from lessees and owners within the estate.
An issue that (until now) has caused problems with the ongoing management of the estate facilities was what rights of management the RTM company has in relation to the estate facilities.
This was the issue under consideration by the Supreme Court in FirstPort Property Services Ltd v Settlers Court RTM Company Ltd and others. The Supreme Court found that the right to manage does not extend to the RTM company managing the shared estate facilities, which do not form part of the “premises” over which the RTM is exercisable. Gala Unity is now overruled.
(ARMA 2022)