This city centre property was converted to provide 11 apartments in recent years, and the flat owners considered the freeholders management costs to be excessive. The flat owners asked Orme Associates for advice. The presence of the retail premises and two basement floors meant the 25% non-residential threshold was exceeded for qualification for the Right to Manage, so we asked the Property Tribunal to appoint a manager under the Landlord and Tenant Act 1987, because of the poor state of the building, however the Tribunal refused on the basis that the Freeholder “appeared to haveĀ got its act together” in the period before the hearing.
However, the freeholder has previously granted a license for conversion of the basement premises into two flats, which would reduce the non-residential element to below 25% when conversion works commenced. Approximately a year later and following commencement of works we served a notice exercising the Right to Manage, which was challenged by the freeholder on various grounds, the Property Tribunal subsequently decided the Landlords had no credible defense and the application was granted, and the flat owners took immediate control of the block management thereafter.