Right To Manage For Shared Ownership Flats

There has been some confusion as to whether leasehold "tenant owners" of flats who are acquiring a full interest via the shared ownership route are entitled to use the Right to Manage legislation. That has now been resolved by the recent Court of Appeal decision in Avon Ground Rents Ltd -v- Canary Gateway (Block A) RTM Company Ltd.

The Commonhold and Leasehold Reform Act 2002 gives long leasehold owners of flats (subject to meeting various qualifying criteria) the right to set up a Right to Manage Company and take over the management of the building from the freeholder.

The Act sets out the qualifying criteria at section 76(2) and the first key point is that the flat owners must hold a "long lease" i.e., one exceeding 21 years [s76(2)(a)]. The Act sets out a number of definitions as to what amounts to a long lease and includes [(s76(2)(e)] "a shared ownership lease, whether granted in pursuance of that Part of the Act or otherwise, where the tenant's total share