When it comes to making an application under the Commonhold and Leasehold Reform Act 2002 for the Right To Manage (RTM), there are a number of items to consider. One of the most significant items is the actual premises to be managed and whether they are self-contained or not. The law (Section 72) states that Right To Manage may be applicable on the premises if:
(1)(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.
(2)A building is a self-contained building if it is structurally detached.
(3)A part of a building is a self-contained part of the building if-
(a)it constitutes a vertical division of the building,
(b)the structure of the building is such that it could be redeveloped independently of the rest of the building, and
(c)subsection (4) applies in relation to it.
(4)This subsection applies in relation to a part of a building if the relevant services provided for occupiers of it-
(a)are provided independently of the relevant services provided for occupiers of the rest of the building, or
(b)could be so provided without involving the carrying out of works likely to result in a significant interruption in the provision of any relevant services for occupiers of the rest of the building.
(5)Relevant services are services provided by means of pipes, cables or other fixed installations.
Sub-section (3) confirms a building is self-contained if it constitutes a vertical division of the building, the structure of the building is such that it could be redeveloped independently of the rest of the building and subsection (4) (which relates to the provision of relevant services) applies to it. So if the building is detached it can be usually be considered self-contained premises. The intent of the Act is to ensure that provided self- contained and structurally detached, a building could be free-standing or joined to other buildings (such as in a terrace) and constitute "premises", and also to ensure that a self-contained part of a building, provided vertically divided, could also be treated as "premises" to which the RTM provisions applied.
If there is a vertical separation via a structural wall it may be considered multiple self-contained buildings, which would each need a separate RTM Claim. This vertical separation is not always easy to see and the definition of self-contained premises can be used as a reason for a freeholder to refuse a RTM Claim. So to be able to determine the exact situation, a number of different sources can be drawn on for supporting details. This can be used as a checklist to prepare a likely contentious RTM Claim, or when challenged by a Counter Notice which disputes whether a building is self-contained. The following can be used to identify whether a larger building is split into two self-contained buildings:
1) Have past planning and building regulations referred to the building as a single building?
2) The leases: in a given building, do leases in different sides of the building refer to a common building?
3) And do the leases refer to a number of flats in the entire building?
4) Does the plan of the freehold identify a single building?
5) Building Insurance - does it refer to a common building?
6) Services - are the following services provided at one common point, or are they delivered separately to each side of the building a) water b) electric c) TV aerial/cable/satellite d) waste water pipes/sewerage?
7) Is the roof continuous?
8) Is the vertical dividing wall a normal party wall, or structural?
9) Could one side of the building be re-developed independently of the other?
10) Has any external maintenance or tender for works referred to the entire building?
11) Are any existing service contracts billed for the entire building?
By following the above guidelines and exactly defining the premises, you will greatly increase the chance of a successful RTM Claim.
John Hemingway invites you to learn more about Right To Manage at http://www.leaseholddoctors.co.uk/right-to-manage.html
For free valuations, leasehold advice and case studies, visit:
http://www.leaseholddoctors.co.uk
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