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The Right to Manage Only One Set of Premises: A Victory for Landlords?

Adaku Parker, a barrister at Sterling Court Chambers, considers the recent Court of Appeal decision in Triplerose Ltd v Ninety Broomfield Road, RTM Co Ltd [2015] EWCA Civ 282 and discusses the impact of the decision on long leaseholders and landlords.

Since 30th September 2003, the Commonhold and Leasehold Reform Act ("CLRA") 2002 has given long leaseholders of flats the right to manage their buildings after setting up a right to manage ("RTM") company. This right is acquired subject to meeting the qualifying criteria and satisfying the relevant provisions. In the above case, the Court of Appeal considered an appeal from the landlord, Triplerose Ltd, against a decision of the Upper Tribunal which held that one RTM company could acquire the right to manage more than one set of premises, so long as all the qualifying conditions were met in relation to each set of premises.

Those representing the Landlords relied heavily on the complex statutory provisions of the act and it is worth setting out some of those provisions below.

The Statutory Framework
The right of the RTM Company to acquire management rights applies to 'premises' within the meaning of Section 72. Therefore, the right to acquire the right to manage applies to premises if:
1. They consist of a self-contained building or a part of a building, with or without appurtenant property;
2. They contain two or more flats held by qualifying tenants; and
3. The total number of flats held by those qualifying tenants is not less than two thirds of the total number of flats contained in the building.

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