Avon Freeholds Limited v Cresta Court E RTM Company Limited

Facts

Avon Freeholds Ltd is the freeholder of numbers 7–26 Cresta Court, Hanger Lane, London, a residential block containing 20 flats. Cresta Court E RTM Co Ltd was incorporated by leasehold owners of the premises to acquire the right to manage them under the Commonhold and Leasehold Reform Act 2002. On 4 November 2021 the RTM company gave notices of invitation to participate to all those it had identified as qualifying tenants who had not become, or agreed to become, its members. Ms O'Connor, the occupier of Flat 17 under a lease granted on 17 April 2020 for 150 years from 1 January 2015 but whose registration remained pending, was given no such notice, then or later; by reason of section 27(1) and (2)(b)(i) of the Land Registration Act 2002 she was an equitable tenant only, though it became common ground that she was a qualifying tenant throughout. The RTM company gave its claim notice to Avon on 21 January 2022, and Ms O'Connor agreed to become a member and signified her support for the claim on 26 January 2022. Avon's counter-notice of 24 February 2022 disputed entitlement, the only surviving ground being the failure to give Ms O'Connor a notice of invitation to participate. The First-tier Tribunal and the Upper Tribunal upheld the RTM company's claim; the Court of Appeal allowed Avon's appeal, holding the claim notice void.