Commonhold and Leasehold Reform Act 2002 Explanatory Notes

Schedule 6: Premises excluded from right to manage (Section 72)

314.Paragraph 1 excludes premises where more than 25% of the internal floor area is in non-residential use.  This mirrors the exclusion from the right to collectively enfranchise.

315.Paragraph 2 excludes premises which contain separate self-contained parts where the freehold of those parts is owned by different persons.

316.Paragraph 3 excludes converted premises which consist of no more than four units where either the landlord or an adult member of the landlord’s family occupies one of those units as their only or principal residence.

317.Paragraph 4 excludes premises where a local housing authority is the immediate landlord of any of the qualifying tenants.

318.Paragraph 5 excludes premises where the right to manage has already been acquired and continues to be exercisable.  Where a RTM company ceases to be responsible for the management of the premises, it will not be possible for any party to acquire the right for those premises within four years of that event except with the agreement of a LVT.  (This bar does not apply, however, if the right to manage has ceased for the property as a result of a RTM company being used to acquire the freehold.)

Back to top