James Holton, Senior Associate in DTM Legal’s Property Litigation team, has co-authored an article published in The Law Society Gazette, exploring an important Court of Appeal decision for landlords, investors, developers and advisers dealing with residential leasehold property.
The article, titled Court clarifies what counts as a ‘building’, was co-authored by James Holton and Philip Byrne of St John’s Buildings. It considers the Court of Appeal’s decision in SGL 1 Ltd v FSV Freeholders Ltd and its implications for rights of first refusal under Part I of the Landlord and Tenant Act 1987.
The case provides important appellate guidance on the meaning of “building” for the purposes of the Act, particularly where residential developments comprise multiple blocks, shared facilities or interconnected parts of a wider estate.
Under the Landlord and Tenant Act 1987, qualifying tenants may have a right of first refusal where a landlord proposes to dispose of certain interests in premises containing flats. The correct identification of the relevant “building” is therefore a key consideration when serving section 5 notices and structuring transactions involving residential freehold interests.
The Court of Appeal’s decision is significant for those involved in the acquisition or disposal of freehold interests in residential estates, as it provides further clarity on how transactions should be approached where multiple buildings sit within a single freehold title or form part of a larger development.
James Holton said:
“This is an important decision for landlords, investors, developers and professional advisers involved in residential leasehold property. The Court of Appeal has provided welcome clarification on an issue that can have significant practical consequences when dealing with rights of first refusal and section 5 notices.”
DTM Legal’s Property Litigation team advises landlords, tenants, developers, investors and managing agents on a wide range of property disputes, including leasehold issues, rights of first refusal, possession claims, service charge disputes and commercial property matters.
To read the full article in The Law Society Gazette, visit: Court clarifies what counts as a ‘building’.
For advice on property litigation, landlord and tenant disputes or leasehold property matters, please contact James Holton or a member of DTM Legal’s Property Litigation team.
