Gateway Property Holdings Ltd v 6-10 Montrose Gardens RTM Company Ltd, Court of Appeal - Lands Tribunal, September 08, 2011, [2011] UKUT 349 (LC)

Resolution Date:September 08, 2011
Issuing Organization:Lands Tribunal
Actores:Gateway Property Holdings Ltd v 6-10 Montrose Gardens RTM Company Ltd
 
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11© CROWN COPYRIGHT 20111UT Neutral citation number: [2011] UKUT 349 (LC) UTLC Case Number: LRX/37/2011 TRIBUNALS, COURTS AND ENFORCEMENT ACT 2007 LANDLORD AND TENANT - right to manage - time of application of claim for right to Manage - notice of invitation to participate prior to making claim - appeal allowed - Commonhold and Leasehold Reform Act 2002 ss71-80, 84. IN THE MATTER OF AN APPEAL FROM A DECISION OF THE LEASEHOLD VALUATION TRIBUNAL FOR THE NORTHERN RENT ASSESSMENT PANEL BETWEEN GATEWAY PROPERTY HOLDINGS LIMITED Appellant and 6-10 MONTROSE GARDENS RTM COMPANY LIMITED Respondent Re: 6-10 Montrose Gardens,Castleford,West Yorkshire WF10 5LG Before: Her Honour Judge Walden-Smith Sitting at: 43-45 Bedford Square, London WC1B 3AS on 2 September 2011Simon Serota instructed by Wallace LLP for the appellantThe respondent did not appearNo cases referred to.DECISIONIntroduction1. This is an appeal against a decision of the Leasehold Valuation Tribunal for the Northern Rent Assessment Panel dated 14 February 2011. Permission was granted by the President on 24 May 2011. The appeal is by way of review.2. The Appellant appeals the determination of the LVT that the Respondent, 6-10 Montrose Gardens RTM Company Limited, was entitled to acquire the right to manage the premises at 6-10 Montrose Gardens, Castleford, West Yorkshire WF10 5LG (``the Premises'').3. The appeal is on two grounds:(1) That the application was made out of time and that the LVT erred in determining that the particulars and documents included with the faxed application received on 1 October 2010 were sufficient to enable the application to be determined;(2) No notice to participate complying with the provisions of section 78 of the Commonhold and Leasehold Reform Act 2002 was given prior to the Claim Notice served on 9 July 2010.If the Appellant succeeds on either or both of these grounds then the Appeal is successful and the determination of the LVT that the Respondent company has acquired the right to manage the Premises must be set aside.4. Both these matters were before the LVT for consideration and dealt with in the decision dated 14 February 2011 and in the refusal of permission to appeal made by the LVT on 8 March 2011. They involve an interpretation of the relevant provisions of the Commonhold and Leasehold Reform Act 2002 (``the 2002 Act'') and the relevant provisions of the Leasehold Valuation Tribunals (Procedure) Regulations 2003 (``the LVT Procedure Regulations'') with respect to the right to manage.The Statutory Framework5. The Right to Manage legislation is set out in Part 2, Chapter 1 of the 2002 Act, sections 71 to 81. The sections relevant to the matters raised in this appeal are as follows:71 The right to manage(1) This Chapter makes provision for the acquisition and exercise of rights in relation to the management of premises to which this Chapter applied by a company which, in accordance with this Chapter, may acquire and exercise those rights (referred to in this Chapter as a RTM company).(2) The rights are to be acquired and exercised subject to and in accordance with this Chapter and are referred to in this Chapter as the right to manage. 72 Premises to which Chapter applies (1) This Chapter applies to premises if -(a) they consist of a self-contained building or part of a building, with or without appurtenant property,(b) they contain two or more flats held by qualifying tenants, and(c) the total number of flats held by such tenants is not less than two-thirds of the total number of flats contained in the premises[sub-sections (2) to (6) sets out various definitions and explanations and need not be recited for these purposes].73 RTM Companies(1) This section specifies what is a RTM company.(2) A company is a RTM company in relation to premises if - (a) it is a private company limited by guarantee, and(b) its articles of association state that its object, or one of its objects, is the acquisition and exercise of the right to manage the premises[sub-section (3) sets out what is not a RTM company; again, there is no need for it to be recited for these purposes].Section 74 sets out the membership and regulations of RTM companies.75 Qualifying tenants(1) This section specifies where there is a qualifying tenant of a flat for the purposes of this Chapter and, if so, who it is.(2) Subject as follows, a person is the qualifying tenant of a flat if he is tenant of the flat under a long lease.[sub-sections (3) to (7) set out the exceptions to who is not a qualifying tenant, but again do not need to be recited for these purposes]Sections 76 and 77 set out provisions relating to what is a long lease.78 Notice inviting participation(1) Before making a claim to acquire the right to manage any premises, a RTM company must give notice to each person who at the time when the notice is given (a) is the qualifying tenant of a flat continued in the premises, but (b) neither is nor has agreed to become a member...

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