We all know that the Commonhold & Leasehold Reform Act 2002 introduced the right for leaseholders to take over the management of their buildings by obtaining the right to manage. The RTM Company assumes the management functions in respect of the property. Management functions include maintenance, repairs etc. Landlords are prevented from doing anything that the RTM Company is required or empowered to do.
Often, leases reserve a right for the landlord to develop the neighbouring or adjoining property.
What happens when a landlord wants to develop a block of flats by building a new flat, for example? Does this interfere with the management functions held by the RTM Company? Does the RTM legislation prevent the landlord from building the new flat?
This issue has been considered by the County Court. Whilst the County Court did agree that the RTM Company was required to manage the roof of the building, and that this obligation would be affected by the construction of the new flat, nonetheless the Landlord was allowed to carry out the works to build the new flat so long as the Landlord took all reasonable steps to minimise the disturbance to the management functions of the RTM Company during and after the works.
The RTM Company have obtained permission to appeal to the Court of appeal, and it will certainly be interesting to see how the Court of appeal deal with the interaction between a Landlord’s right to develop its property and the right of the RTM Company to manage it.
Article from Cassandra Zanelli, Partner & Head of Property Management at Taylor&Emmet LLP Solicitors.
