Industry comment, updates and news from the Websters team.

Are we attached?

Wednesday, February 26th, 2014 in Landlord, Managing Agent, News, Residential

No. 1 Deansgate (Residential) Limited v No. 1 Deansgate RTM Co. Limited

In Eversheds ‘Top 5 cases of 2013, it was reported that the decision in this case was that, for the
purposes of the Commonhold and Leasehold Reform Act 2002, a building can be
attached to another and still be considered to be ‘structurally detached’, so long as the
attachment is not of a structural nature. The relevance of this finding is because
qualifying leaseholders of flats are entitled to establish and join a Right to Manage
company (‘RTM company’) if they all occupy a ‘self contained’ building. The building in
this case was a 14 floor block of flats which was originally a stand alone building but
over time neighbouring properties had been connected to it. The leaseholders formed
an RTM company and sought to acquire the Right to Manage which was denied.
However it was held that as the neighbouring buildings derived no structural support
from the building in question, it could be regarded as structurally detached and the
Right to Manage application could proceed. The cases which considered the phrase
‘structurally detached’ when looking at the Leasehold Reform Act 1967, were irrelevant
for this purpose. Residents will now have to consider not whether their building is joined
or touches another building, but if it gains any real support from that building before
making an application.

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