RTM – 1 Block equals 1 Company
A year on from this important case – time for a handy reminder….
In the ever changing legal landscape surrounding RTM applications case law answered (for now) the debate on whether or not one company can manage multiple blocks in a single development.
The case was Triplerose Ltd v Ninety Broomfield Road RTM Co. Ltd [2015] EWCA Civ 282 and it was published in March 2015.
It was decided that a single RTM company could only manage a single block that is identified as a premises.
The reasoning was down to the statutory interpretation of the meaning of premises – The court relied on the Commonhold & Leasehold Reform Act 2002 interpretation for “premises” as “a single self-contained building or part of a building” and interpreted that as meaning that it cannot apply to a number of blocks or self-contained buildings but only a single self-contained building.
Therefore an RTM company cannot acquire the right to management over more than one self-contained building or part of a building.
We would suggest that those wishing to exercise their right to manage over a development with a number of blocks within it consider the implications. It is important that you consider if you have enough support in each block for a successful application and also take into account the fact that you will need more than one company for each block.
If you are unsure about any aspect of the RTM process then please contact LMP Law so that we can help.
