Assethold Limited v 159-167 Prince of Wales Road RTM Company Limited

Facts

The property at 159-167 Prince of Wales Road, London NW5 3PY comprises several long leasehold flats. The appellant, Assethold Limited, purchased both the freehold and the headlease of the property from Millcastle Limited on 10 October 2019, though its application to HM Land Registry for registration remained pending. The respondent, 159-167 Prince of Wales Road RTM Company Limited, is a right to manage company formed by the leaseholders of some of the flats. On 10 June 2021 the RTM company served a claim notice addressed both to Millcastle and to the appellant under section 79 of the Commonhold and Leasehold Reform Act 2002. The appellant served a negative counter-notice dated 14 July 2021 under section 84 of the 2002 Act, contending that the notice of invitation to participate had not been given to the correct persons and that the claim notice had not been served on each of the persons specified in section 79(6) and (8) of the Act. On 23 September 2021 the RTM company applied to the First-tier Tribunal under section 84(3) of the 2002 Act, naming the appellant as landlord; on 25 May 2022, the day before the listed hearing, it withdrew. The appellant's costs application under section 88(4) was refused, the FTT holding that only legal ownership counted and rejecting the estoppel argument. Permission to appeal was granted on three grounds.