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Allocation of responsibilities – Right to Manage (“RTM”) company and landlord

A recent case before the County Court involved a block of residential flats where the right to manage had been acquired by an RTM company. The landlord sought to construct another flat on the roof of the building. The RTM company argued that the existence of the RTM company and the transfer of management functions prevented the landlord from constructing the proposed new flat. The Court considered whether the construction of the new flat would unlawfully interfere with the exercise of management functions by the RTM company. In this case, it is important to note that the RTM company were responsible for managing and keeping the roof of the building in repair.

The County Court found that the existence of an RTM company and the transfer of management functions did not in itself prevent the landlord from building a new flat on the roof. The RTM company were not entitled to construct a new flat and therefore what the landlord was proposing, was not something which RTM company were required or empowered to do. It was acknowledged that the construction works would affect the RTM company’s management functions but found this could be resolved by the landlord undertaking to minimise disturbance to the management functions.

There is very little case law involving the right to management in particular as to the transfer of management functions to RTM companies and the interaction with the landlord and its interest in the reversion. Permission to appeal to the Court of Appeal has been granted. We will wait for updates with interest.

November 2016

Katie Mear
Sykes Anderson Perry Limited