Free UK Right to Manage Notice of Claim — CLRA 2002 s.79

Right to Manage — Notice of Claim under CLRA 2002 s.79

Premises Cardington Heights  ·  RTM Cardington Heights RTM Company Limited  ·  9 June 2026

This is the NOTICE OF CLAIM served under section 79 of the Commonhold and Leasehold Reform Act 2002 by Cardington Heights RTM Company Limited (company number 16284937), an RTM Company validly incorporated under CLRA 2002 s.73 + the RTM Companies (Model Articles) (England) Regulations 2009 (SI 2009/2767), exercising the no-fault right under CLRA 2002 s.71 to acquire management of the qualifying premises at Cardington Heights, 88-104 Cardington Avenue, London SW18 5DT.

QUALIFYING PREMISES. The premises satisfy the 5-condition matrix in CLRA 2002 s.72: self-contained building / part; 24 flats containing two or more held by qualifying tenants; 22 of 24 flats are held by qualifying tenants (meeting the two-thirds threshold); 15 of 24 flats are held by RTM Company members (meeting the one-half participation threshold under s.79(5)); non-residential internal floor area is 12% (within the 50% LFRA 2024 ceiling commenced 3 March 2025).

COUNTER-NOTICE DEADLINE. A counter-notice under CLRA 2002 s.84 must be served on the RTM Company by 10 July 2026 (at least one month from service of this notice). The acquisition date specified is 12 October 2026 (at least three months after the counter-notice deadline).

WARNING. Failure to serve a valid counter-notice within the deadline will result in the RTM Company acquiring the right to manage on the acquisition date without further procedure. If the claim is disputed, the RTM Company may apply to the First-tier Tribunal (Property Chamber) under s.84(3) within two months of the counter-notice.

Premises: Cardington Heights, 88-104 Cardington Avenue, London SW18 5DT
Total flats: 24
Flats held by qualifying tenants (CLRA s.72(1)(b),(c) + s.75): 22
Flats held by RTM members (s.79(5)): 15
Non-residential internal floor area: 12% (LFRA 2024 50% ceiling, in force 3 March 2025; prior CLRA ceiling 25%)

Name: Cardington Heights RTM Company Limited
Company number: 16284937
Registered office: c/o Hawthorne Property Services, 14 Streatham High Road, London SW16 1DH
Acting director: Daniel Okoyem-Ashford
Status: company limited by guarantee, incorporated under the Companies Act 2006; memorandum and articles substantially in the form prescribed by the RTM Companies (Model Articles) (England) Regulations 2009 (SI 2009/2767). All qualifying tenants of flats in the premises are eligible for membership. The landlord may join after the acquisition date under CLRA s.74.

Date of notice of claim (s.79): 9 June 2026
Counter-notice deadline (s.84 + s.79(6)): 10 July 2026
Acquisition date (s.79(7) + s.90): 12 October 2026
FTT s.84(3) application window (if claim disputed): within 2 months of counter-notice service

The qualifying premises 5-condition matrix under CLRA 2002 s.72 + s.79(5) is satisfied: (1) Cardington Heights is a self-contained 1960s purpose-built block with no shared structure or services with any adjoining building (s.72(1)); (2) the building contains 24 flats, of which 22 are held by qualifying long-lease tenants (>=21 years originally granted) per s.75 (s.72(1)(b)); (3) 22/24 qualifying tenants exceeds the 2/3 threshold of 16 (s.72(1)(c)); (4) 15/24 RTM Company members exceeds the 1/2 participation threshold of 12 (s.79(5)); (5) non-residential floor area (12% — basement gym and ground-floor concierge / refuse area) is well within the LFRA 2024 50% ceiling commenced 3 March 2025. The RTM Company was incorporated 14 March 2026, adopting the SI 2009/2767 Model Articles, and the s.78 notice inviting participation was served on the 7 non-member qualifying tenants on 25 May 2026 with a 14-day response window. The notice of claim under s.79 specifies counter-notice deadline 10 July 2026 (1 month + 1-day buffer) and acquisition date 12 October 2026 (3 months + 2-day buffer after counter-notice deadline). LFRA 2024 s.90 (commenced 3 March 2025) bars recovery of the landlord's RTM costs from leaseholders. FTT Property Chamber jurisdiction under s.84(3) reserved if the claim is disputed.

(1) SELF-CONTAINED BUILDING / PART — s.72(1). The premises must be a self-contained building or self-contained part. For a part, s.72(3) requires (a) vertical division of the building; (b) structure permitting independent redevelopment; and (c) prescribed conditions on services. Recent UT authority: Assethold Ltd v Eveline Road RTM Company Ltd [2023] UKUT 26 (LC) (s.72(3) applied to terraced property) and The Courtyard RTM Co Ltd v Rockwell (FC103) Ltd [2025] UKUT 39 (LC) (clarifying that vertical faces away from the division point are not required; what matters is physical structure separating the part from the rest). Cardington Heights is a single 8-storey 1960s purpose-built mansion block constructed on its own demised plot (Land Registry Title TGL784921). The building has no structural connection with any adjoining property (Audrey House to the north and Cardington Mews to the south are separate buildings on separate titles, with a 1.8m physical gap between Cardington Heights and Audrey House). All services (gas, water, electricity, drainage) are independent. There is no shared roof, foundation or structural wall. As a self-contained building under s.72(1), the s.72(3) self-contained part test is not engaged. The recent UT decisions in Assethold Ltd v Eveline Road RTM Company Ltd [2023] UKUT 26 (LC) and The Courtyard RTM Co Ltd v Rockwell (FC103) Ltd [2025] UKUT 39 (LC) confirm that s.72(3) only applies where the premises form part of a larger building — not the position here.

(2) TWO OR MORE FLATS HELD BY QUALIFYING TENANTS — s.72(1)(b). The premises must contain two or more flats held by qualifying tenants (s.75 long-lease tenants). The premises contain 24 flats of which 22 are held by qualifying tenants. The premises contain 24 flats (Flats 1-24). Of these: 22 are held by qualifying tenants under long leases originally granted for terms of 99 or 125 years from various dates between 1968 and 1989 (all exceeding the s.75 21-year threshold). Flat 7 is held by the landlord Pennystone for its own account (its sole director uses it as a London pied-à-terre). Flat 19 is held by Mrs Vera Lutyens under a 7-year tenancy granted by the landlord in 2024 (not a long lease, so not a qualifying tenant). The 22 qualifying flats comfortably exceed the s.72(1)(b) two-flats minimum.

(3) TWO-THIRDS QUALIFYING — s.72(1)(c). At least two-thirds of the total flats must be held by qualifying tenants. The two-thirds threshold for 24 flats is 16; actual count is 22. The two-thirds threshold of 24 flats is 16 (rounded up). The actual count of qualifying tenants is 22 — well above the threshold. The arithmetic detail by flat is at Appendix 2: 22 long leases (99-year 1968 + 125-year 1989), 2 non-qualifying (Flat 7 landlord-occupied, Flat 19 7-year tenancy). The qualifying percentage is 91.7%, comfortably above the 66.7% threshold.

(4) ONE-HALF PARTICIPATING (RTM MEMBERS) — s.79(5). At least half of the total flats must be held by qualifying tenants who are members of the RTM Company at the date of the s.79 notice. The half threshold for 24 flats is 12; actual member count is 15. The one-half participation threshold for 24 flats is 12 (rounded up). The RTM Company membership at 9 June 2026 (date of this s.79 notice) is 15 qualifying tenants. The member register at Appendix 3 (certified by company secretary Sarah Wenger) confirms 15 valid memberships. The participation percentage is 62.5%, comfortably above the 50% threshold under s.79(5). All 15 members are qualifying tenants of long-lease flats (not the landlord, who may join post-acquisition under s.74).

(5) NON-RESIDENTIAL CEILING — LFRA 2024 EXPANSION. The non-residential internal floor area must not exceed the statutory ceiling. LFRA 2024 (Schedule 7) raised the ceiling from 25% to 50% with effect from 3 March 2025 (Commencement No 2 Regulations 2025). The premises non-residential percentage is 12%, within the 50% ceiling. The total internal floor area of the premises (measured per RICS Code of Measuring Practice 6th ed) is 2,340 m² (Cushman and Wakefield measured survey 18 May 2026, Appendix 4). Of this, 280 m² is non-residential (160 m² basement gym + 120 m² ground-floor concierge / refuse / cycle storage area). Non-residential percentage: 280 / 2,340 = 11.97%. Well within the 50% LFRA 2024 ceiling commenced 3 March 2025; would also have been within the prior 25% CLRA ceiling.

Matrix narrative:
All five limbs of the qualifying matrix are satisfied with documented evidence — Land Registry titles, member register, measured floor areas, plans. The landlord is invited to admit the claim in any counter-notice; if disputed, FTT s.84(3) application within 2 months will be made.

(A) COMPANY STRUCTURE — CLRA s.73. An RTM Company must be (i) a company limited by guarantee; (ii) incorporated under the Companies Act 2006; (iii) constituted to acquire and exercise the right to manage. Cardington Heights RTM Company Limited (company number 16284937) is a company limited by guarantee, incorporated at Companies House on 14 March 2026 (Certificate of Incorporation at Appendix 5). Its sole object stated in the Memorandum of Association is the acquisition and exercise of the right to manage the premises at 88-104 Cardington Avenue. The company is dormant for accounting purposes pending acquisition date. Registered office is c/o Hawthorne Property Services, 14 Streatham High Road, London SW16 1DH. Directors as at 9 June 2026: Daniel Okoyem-Ashford (Flat 14, Chair), Sarah Wenger (Flat 22, Company Secretary), and Priscilla Mwango (Flat 8, Treasurer).

(B) MODEL ARTICLES — SI 2009/2767. The RTM Companies (Model Articles) (England) Regulations 2009 prescribe the form of articles. The articles must be substantially in the prescribed form. Material departures may invalidate the company's RTM status. The Articles of Association adopted on incorporation are substantially in the form prescribed by the RTM Companies (Model Articles) (England) Regulations 2009 (SI 2009/2767). Permissible amendments made: (a) company name and registered office; (b) accounting reference date 31 March (matching the service charge year). No material deviations from the Model Articles. The Articles have been filed with Companies House and are at Appendix 6.

(C) MEMBERSHIP — CLRA s.74. Membership is open to (i) qualifying tenants of flats in the premises; and (ii) the landlord (after the acquisition date). Each member has one vote regardless of flat size. The RTM Company member register must be maintained. Membership is governed by Article 4 of the Model Articles. As at 9 June 2026 the RTM Company has 15 members, all qualifying tenants (member register Appendix 3, certified by company secretary). Application form template at Appendix 7. Voting: one vote per member regardless of flat size (Article 12). The landlord has the right under CLRA s.74 to become a member after the acquisition date if it wishes to do so — application form will be sent with the acquisition date notice.

(D) SECTION 78 NOTICE INVITING PARTICIPATION. Before serving the s.79 notice of claim, the RTM Company must serve a notice inviting participation on every qualifying tenant who is NOT already a member, giving at least 14 days for response. Defective s.78 service can invalidate the s.79 claim (subject to s.81 cure for minor inaccuracies). A notice inviting participation under CLRA s.78 was served on 25 May 2026 on each of the 7 qualifying tenants who were NOT already members at that date (Flats 2, 4, 11, 13, 16, 21, 24). Notice form complied with the Right to Manage (Prescribed Particulars and Forms) (England) Regulations 2010 (SI 2010/825). Service by personal delivery to each flat with signed acknowledgement (proof of service Appendix 8). The 14-day response window (s.78(3)) expired 8 June 2026. Two responses received: Flat 4 (Lopez family) signed up as members on 5 June 2026 (included in the 15-member count); Flat 11 (Mr Pithoulios) declined. The remaining 5 did not respond. The s.79 notice is therefore validly served on 9 June 2026 (post-14-day window).

Formation narrative:
All formation requirements are satisfied. The RTM Company is properly incorporated, validly constituted, has compliant Articles, maintains a proper member register, and the s.78 procedural step has been completed. The s.79 claim is procedurally valid.

(A) PRESCRIBED CONTENT — s.79. The notice must contain (i) premises identification with plan; (ii) RTM Company identification (number, registered office, qualifying-tenant members); (iii) statement of claim under s.71; (iv) acquisition date (>= 3 months after counter-notice deadline); (v) counter-notice deadline (>= 1 month from notice service); (vi) prescribed warning; (vii) EandW address for service. This s.79 notice contains all prescribed elements per the Right to Manage (Prescribed Particulars and Forms) (England) Regulations 2010 (SI 2010/825): (i) premises identification with plan (Appendix 1); (ii) RTM Company name, number and registered office (Section A); (iii) member schedule (Appendix 3); (iv) statement of claim under CLRA s.71; (v) counter-notice deadline 10 July 2026 (1 month + 1 day buffer); (vi) acquisition date 12 October 2026 (3 months + 2 days buffer after counter-notice deadline); (vii) prescribed warning of consequences of failure to serve counter-notice; (viii) EandW address for service at the RTM Company registered office.

(B) COUNTER-NOTICE GROUNDS — s.84(2). The landlord may dispute on three grounds: (i) the premises are not qualifying premises; (ii) the company is not an RTM Company; (iii) the notice is otherwise invalid. Pennystone is expected to dispute one or more of: (a) the s.72(3) self-contained position (likely to argue Audrey House and Cardington Heights share structural elements — rebutted by structural surveyor's report); (b) the qualifying status of specific flats (likely to challenge Flat 19 status — but the 22/24 figure provides ample margin); (c) procedural compliance with s.78 (likely to challenge service evidence — but signed acknowledgements provide proof). The right itself is well-grounded; any dispute will be procedural rather than substantive.

(C) FTT APPLICATION — s.84(3). Where the landlord disputes the claim, the RTM Company may apply to the FTT (Property Chamber) within 2 months of the counter-notice for a determination that the claim is valid. Failure to apply within 2 months can cause the claim to lapse. If Pennystone disputes the claim by counter-notice, the RTM Company will apply to the FTT Property Chamber under CLRA s.84(3) within 6 weeks of the counter-notice (well within the 2-month window). Anticipated issues: (i) s.72(3) self-contained for the Audrey House interface (structural surveyor evidence); (ii) any qualifying-flat challenge (Land Registry official copies); (iii) s.78 procedural compliance (witnessed service acknowledgements). Estimated FTT hearing duration: half-day, paper or short oral.

(D) ACQUISITION DATE — s.90. The right vests on the acquisition date specified in the notice (where not disputed) or 3 months after the FTT determination becomes final. From the acquisition date the RTM Company assumes the management functions specified in s.96. Acquisition date 12 October 2026 provides 3 months + 2 days buffer after the counter-notice deadline (10 July 2026). Handover plan: (a) terminate current managing agent (Blue Pebble Property Management) contract with 30-day notice from 12 September 2026 (effective 12 October 2026 — acquisition date); (b) appoint new managing agent (Hawthorne Property Services already on the RTM Company registered office, retained for transitional management); (c) transfer existing service charge funds (estimated £42,000 reserve) by handover audit; (d) novate insurance policy (AXA, expires January 2027) — RTM Company to take over as policyholder; (e) communicate handover to all tenants 14 days before acquisition date.

Procedure narrative:
The s.79 procedure timeline is: 9 June 2026 notice served → 10 July 2026 counter-notice deadline → (if disputed) by 10 August 2026 FTT s.84(3) application → 12 October 2026 acquisition date (or 3 months after FTT determination, whichever later).

(A) LANDLORD COSTS BAR — LFRA 2024 s.90 (commenced 3 March 2025). Section 90 of the Leasehold and Freehold Reform Act 2024 prohibits the recovery of the landlord's RTM-related legal / professional costs from leaseholders. Previously the landlord could recover reasonable costs under CLRA 2002 s.88 in considering and responding to an RTM claim; this is now ABOLISHED. RTM is cost-free for participating leaseholders save for their own legal / administrative costs. Pennystone's solicitor (Withers LLP) raised informal pre-action enquiries about the RTM claim on 28 May 2026 asking for evidence on s.78 service and the non-residential measured area. The RTM Company response (sent 4 June 2026) declined to bear any landlord-side costs, citing section 90 of the Leasehold and Freehold Reform Act 2024 (commenced 3 March 2025) which prohibits the recovery of landlord's RTM-related legal / professional costs from leaseholders. The previous CLRA 2002 s.88 cost recovery is abolished. RTM Company's own legal budget: ~£12,000 (Hawthorne Property + Anthony Gold Solicitors RTM specialism).

(B) MANAGEMENT FUNCTIONS — CLRA s.96. From the acquisition date the RTM Company assumes the landlord's management functions under the leases (repair, insurance, maintenance, service charge administration, dispute resolution within the premises) BUT NOT: (i) right of re-entry / forfeiture; (ii) collection of ground rent; (iii) functions reserved by express carve-out. From the acquisition date the RTM Company assumes the landlord's management functions under each lease (CLRA s.96): (a) repair, decoration and maintenance of structure, exterior and common parts; (b) insurance of the building (landlord buildings policy); (c) cleaning and lighting of common parts; (d) management of the lift, gym and bicycle storage; (e) service charge administration; (f) dispute resolution within the premises. NOT transferred: (a) right of re-entry / forfeiture (stays with landlord); (b) collection of ground rent (stays with landlord); (c) any function reserved by express carve-out in individual leases (none identified).

(C) CONTRACTOR NOVATION — CLRA s.97. Existing management contracts (managing agent, maintenance contractors) do NOT automatically novate to the RTM Company. The RTM Company must elect to take novation by serving a notice on the contractor; alternatively new contracts can be procured. G and A Gorrara Ltd v Kenilworth Court Block E RTM Company Ltd illustrates the scope limits — RTM cannot recover estate-wide services outside the demised premises.

(D) UPPER TRIBUNAL (LANDS CHAMBER) APPEAL. Appeal lies on a point of law only and requires permission. First apply to FTT within 28 days of decision; if refused, apply to UT within 14 days under SI 2010/2600 rule 21 of the Tribunal Procedure (Upper Tribunal) (Lands Chamber) Rules 2010. Cart-style judicial review is now severely restricted following R (Cart) v Upper Tribunal [2011] UKSC 28 and section 2 of the Judicial Review and Courts Act 2022 — the appellate route via FTT then UT is the only practical option. If the FTT determines the s.84(3) application against the RTM Company, appeal grounds would be limited to errors of law: (a) misapplication of s.72(3) self-contained tests per Assethold / Courtyard authorities; (b) misreading of s.78 / s.79 procedural requirements; (c) procedural unfairness in FTT process. Process: (i) first apply to FTT for permission within 28 days of decision; (ii) if refused, apply to UT within 14 days under SI 2010/2600 rule 21; (iii) UT (Lands Chamber) hears appeal. Cart-style JR of UT permission refusals is now severely restricted following R (Cart) v UT [2011] UKSC 28 and s.2 Judicial Review and Courts Act 2022 — the FTT-to-UT route is the only practical appellate option. Budget for UT representation (counsel + RTM specialist solicitor) ~£28,000.

Post-acquisition narrative:
Post-acquisition focus: (1) build leaseholder confidence through prompt service charge consultation under LTA 1985 s.20; (2) cost transparency via quarterly financial reports to members; (3) repair schedule prioritised by life-safety and Building Safety Act 2022 Schedule 8 considerations; (4) annual general meeting in October each year with full members in attendance; (5) AGM resolution to consider commonhold conversion under the LFRA 2024 commonhold reform once those provisions are commenced (currently pending).

The RTM Company encloses with this notice of claim:

   (a) plan of the qualifying premises identifying the building / part subject to the claim;
   (b) schedule of qualifying tenants who are members of the RTM Company at the date of the notice;
   (c) certificate of incorporation of the RTM Company and copy of Articles substantially in SI 2009/2767 form;
   (d) copy of the s.78 notice inviting participation (with proof of service);
   (e) (where applicable) measured floor area schedule (RICS) supporting the non-residential percentage;
   (f) Land Registry official copies for sample qualifying tenant titles.