This important case concerned the competing rights of landlords and Right to Manage (“RTM”) companies. The landlord intends to develop the roof of the building by adding an additional flat but the RTM company objected on the basis that such a development would interfere with its management functions under Part II, Chapter I of the Commonhold and Leasehold Reform Act 2002.
The Court found that the landlord was entitled to carry out the development and that the 2002 Act did not prevent a landlord building on its retained property where a RTM company had acquired the right to manage, provided it took steps to minimise the disturbance to the RTM company’s management functions.
There is no known decided case on this point and, because the decision raises an important point of principle, the RTM company was granted permission to appeal to the Court of Appeal under the ‘leapfrog’ provisions of CPR rule 52.14(1)(a).
Michael Walsh acted for the landlord and Jonathan Upton represented the RTM company.
A copy of the decision can be downloaded here.