If your building is going through a Right to Manage (RTM) process, do you know your rights? A recent tribunal case, Avon Freeholds Limited v. Cresta Court E RTM Company Limited [2024] UKUT 335 (LC), explained what happens if an RTM company fails to notify all leaseholders and who can challenge such errors.
What the Tribunal Decided
The tribunal confirmed:
- Leaseholders with long leases, even if their lease isn’t yet registered at the Land Registry, must be notified by the RTM company before starting the RTM process.
- If an RTM company forgets to notify you, only you have the right to challenge this mistake.
The Case
In this case:
- A leaseholder’s long lease hadn’t been registered when the RTM company served its Claim Notice.
- The tribunal agreed the leaseholder should have been notified.
- However, because the leaseholder didn’t challenge the mistake, the RTM claim was allowed to continue.
What This Means for Leaseholders
This decision ensures that leaseholders are included in the RTM process and can take part in decisions about how their building is managed. However, if mistakes happen, it’s up to the affected leaseholder to raise concerns.