Foot Anstey lawyers win four-year ‘right-to-manage’ battle for leaseholders of luxury flats

December 7, 2021
By

The property litigation team at national law firm Foot Anstey has advised on a major case which has allowed leaseholders of million pound-plus flats in an upmarket part of London the right to manage their building.

In the case, the Court of Appeal ruled against the freehold owner of exclusive Spire House in Lancaster Gate, which had tried for four years to halt the transfer of the right to manage (RTM) to a company set up by a group of its leaseholders. 

Spire House, pictured, a stone’s throw from Kensington Gardens, is a luxury development of 23 flats over six floors built next to a Grade II listed Victorian church tower.

The RTM company was formed by the majority of its leaseholders seeking more direct control of the building’s management.

The Foot Anstey team, which included legal director Anna Phillips and associate Marina Leigh, become involved in 2017 after an initial RTM application, made by a different firm, was defeated.

Although their new bid was successful, the decision was appealed by the freehold owner, Eastern Pyramid Group Corporation, first to an Upper Tribunal – which was successfully opposed in July last year – and then, through a second appeal, to the Court of Appeal.

Judgment was handed down on November 9 and the appeal dismissed, allowing the acquisition of the RTM by the leaseholders by March next year. Costs of the second appeal were awarded in the RTM company’s favour.

Anna Phillips, pictured, who leads Foot Anstey’s charity property practice, said: “We are extremely pleased for our client and its underlying members, who are the majority leasehold owners of Spire House. 

“This has been a long and drawn-out journey – the acquisition of the right to manage has required huge determination on their part.

“This judgment is helpful in reminding freeholders that the tribunals and courts will not tolerate this sort of unnecessary and cynical opposition of the legitimate exercise of the right to manage.”

The Foot Anstey team collaborated with barristers from Tanfield Chambers on the case.

Foot Anstey, which has offices in Bristol, Exeter, London, Plymouth, Southampton, Taunton and Truro, advises clients in sectors spanning development, energy and infrastructure to Islamic finance and retail and consumer.

The right to manage gives leaseholders the ability to take over the management of their block by setting up an RTM company that allows them to confront historic leaseholder disputes.

The support of at least 50% of a building’s leaseholders is needed to set up an RTM company.

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