Avon Freeholds Ltd v Cresta Court E RTM Co Ltd

Subject Matter

LANDLORD AND TENANT — Right to manage — Validity of claim — Right to manage company seeking to acquire right to manage premises consisting of flats let on long leases — Company not serving notice of invitation to participate on lessee holding recently granted and as yet unregistered lease — Whether lessee under such lease “qualifying tenant” to whom notice of invitation to participate required to be given — Whether failure to serve such notice on all qualifying tenants invalidating company’s subsequent claim notice — Commonhold and Leasehold Reform Act 2002 (c 15), ss 75, 76(2), 78, 79(2), 112(2)

[2024] UKUT 335 (LC); [2025] 1 WLR 1262; [2024] WLR(D) 529, UT

[2025] EWCA Civ 1016; [2025] WLR(D) 418, CA

AI Summary & Issues

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In Avon Freeholds Limited v. Cresta Court E RTM Company Ltd, the Court of Appeal upheld the Upper Tribunal's finding that Ms O'Connor was a qualifying tenant, despite her unregistered lease at the claim notice's service. However, the court determined that the absence of a participation notice rendered the claim notice invalid under section 79(2) of the Commonhold and Leasehold Reform Act 2002. As a result, Avon Freeholds Limited's appeal was allowed, confirming that the RTM company could not validly acquire the right to manage the property.

Issues

• Did the court determine whether Ms O'Connor was a qualifying tenant despite her lease not being registered at the time the claim notice was served?
• Did the court consider whether the failure to provide a participation notice to Ms O'Connor invalidated the claim notice served by the RTM company under the Commonhold and Leasehold Reform Act 2002?
• Was the interpretation of the statutory provisions regarding participation notices and qualifying tenants influenced by the Supreme Court's decision in A1 Properties?

Appellate History

Commentary

Gatehouse Chambers
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