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ARTICLE · 22 OCTOBER 2012

'What Is A House?' - Judgment Day

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The Supreme Court has ruled that owners of leasehold properties which have been used as houses in the past but which are now used for exclusively commercial purposes do not have the right to acquire their freeholds.

United KingdomReal Estate and Construction

The Supreme Court has ruled that owners of leasehold properties which have been used as houses in the past but which are now used for exclusively commercial purposes do not have the right to acquire their freeholds.

The decision shifts the emphasis away from physical appearance and the historic use to current use.

There are essentially two tests:

  • is the building wholly or partly 'designed or adapted for living in'? This test should be passed if some part of the building is actually lived in or has facilities such that it could be lived in. There remains doubt as to whether short-term accommodation qualifies, notwithstanding that it could be used for long-term accommodation.

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