[2024] UKUT 335 (LC)

It is well-established that the procedure for acquiring the right to manage under the 2002 Act was intended to be straightforward. In August 2000 the consultation paper Commonhold and Leasehold Reform, Draft Bill and Consultation Paper (CM 4843) set out the policy of the legislation. At paragraph 10 of section 3 it said:

“The main objective is to grant residential long leaseholders of flats the right to take over the management of their building collectively without having either to prove fault on the part of the landlord or to pay any compensation. The procedures should be as simple as possible to reduce the potential for challenge by an obstructive landlord.”

Sadly, the years since the enactment of the legislation have seen multiple challenges by landlords on the basis of procedural errors by RTM companies. A qualifying tenant has not been given a notice of invitation to participate; a claim notice has not been served upon all the persons within section 79(6); a notice of invitation to participate does not contain the notes in the prescribed form; and so on. As we shall see, the law has moved through a series of different positions as to the effect of getting the procedure wrong. The authoritative position now is found in the very recent decision of the Supreme Court in A1 (Sunderland) which I discuss at paragraph 92 and following.