Flat Tenants – Taking Over Management Can Be a Legal Minefield

4th December 2017 By Arman Khosravi

Most leaseholders would like to obtain the right to manage their own premises. However, as one tribunal case shows, there are many potential pitfalls, so seeking professional legal advice is always a wise precaution.

The four qualifying tenants of a block of flats had set up a ‘right to manage’ (RTM) company with a view to exercising their right to take over the block’s management under the Commonhold and Leasehold Reform Act 2002. Their attempt to do so was, however, determinedly resisted by their landlord.

As all four tenants were members of the company, there was no need for them to be formally invited to participate in the process. However, the Act required that the company serve each of them personally with a copy of the claim notice. The landlord argued that that had not been done and that the failure to follow the procedures laid down by the Act to the letter had undermined the entire process.

Those arguments were, however, rejected by the First-tier Tribunal on the basis that the tenants had all been served with the claim notice by email. In dismissing the landlord’s challenge to that ruling, the Upper Tribunal found that email was a valid method of service. Even had that not been the case, service by email had caused no prejudice to the landlord and would not have automatically invalidated all subsequent steps in the process.

Source: Concious

Latest News

Award That Requires Borrowing Made Into Court Order

17th May, 2024 By

Disagreements between separating couples all too often result in litigation that substantially reduces the assets available to them, as was illustrated by a case that recently reached the High Court. At issue was whether awards made by arbitrators in financial remedy proceedings can be made into court orders even if that would require one of the parties to borrow money. The couple had previously had a relationship lasting a few years before resuming their relationship in 2015. They had two children before separating again in 2019. Following their separation, the...

Inheritance Disputes – Costs Risks Can Be Reduced

15th May, 2024 By

Arguments about what someone promised before their death can lead to significant legal costs. However, if faced with a claim against the estate, there may be steps the beneficiaries or executors can take to reduce the risks, as a recent High Court case illustrated. A man had left a farmhouse and agricultural land in Cornwall to his wife, with whom he had also jointly owned a neighbouring area of land. After his death, one of the couple's daughters and her husband claimed that he had told them he wanted them...

Share Rounding Error Does Not Prevent CGT Relief

13th May, 2024 By

There are often very specific rules that must be complied with in order to claim tax reliefs, but if a small mistake arises, the courts may be able to provide assistance. In a recent case, the First-tier Tribunal (FTT) found that an investor was entitled to Entrepreneurs' Relief on the disposal of his shares in a company, despite owning one share fewer than he needed to qualify for it. The investor had agreed to purchase 5 per cent of the shares in the company for £500,000. He wished to own...

Wife Entitled to Maintenance Until Sale of Family Home

10th May, 2024 By

When divorcing couples disagree on how assets should be divided, the courts will seek to arrive at a fair outcome for both parties. In deciding how the proceeds of sale of a former couple's home should be apportioned, the Family Court agreed with the wife that she should receive maintenance payments until the sale took place. The couple had married in 2006. Following a brief separation, they had reconciled for two years before finally separating in 2022. The husband and wife both contended that they should be entitled to about...