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Firstly there is a physical test; the block must be a selfcontained building or part of a building. If it is not detached, 3 sub-tests must be met:
1. There must be vertical divisions with the adjoining buildings,
2. It must be capable of being redeveloped independently and
3. If there are shared facilities or services, they must be capable of being provided independently without significant interruption.
As to vertical divisions, in the Finland Street case, the Lands Tribunal said that a minimal deviation would be permissible but that 2% of the area under the neighbouring building was not minimal.
On shared services, in the Oakwood Court case, the block shared a boiler house with the neighbouring block. HH Judge
Marshall QC said that without the boiler house, the block was not self-contained. She said thefollowing steps would lead to the appropriate result:
1. Identify the services not provided independently
2. Can they be provided independently
3. If so what works are necessary
4. What interruption would they entail
5. Is the disruption “significant”
There is a controversial court decision that more than one building can be included in a single notice, provided the appurtenant premises are shared by the occupants of each building. However the safe course is to serve separate notices for each detached building.
At least 75% of the block must be in residential use. If measurement is necessary, all common parts must be excluded whether they are areas shared by the flat occupiers or shared with commercial occupiers. The whole of the interior is to be measured without interruption. Balconies demised with the flat and indented into the flat i.e being at least partially covered and inside the main external walls, can be included in the residential area. Balconies which are cantilevered out from the edge of the building have to be excluded.
It has been held that a vacant porter’s flat and underpavement vaults were to be counted as non-residential. Next come the lessees’ tests. The Block must contain two or more flats held by qualifying tenants and two-thirds of the flats must be let on qualifying tenancies. A qualifying tenancy is one that was originally for more than 21 years. However business tenancies are not qualifying tenancies. A flat is a dwelling where a material part lies above or below another part of the building. A flat can be let by the same landlord to the same tenant under 2 leases. The final test relates to the members of the RTM Company. The members must own at least 50% of the flats in the block. For example: in a block of 21 flats, at least 14 (two-thirds) must be let to qualifying tenants and the members of the RTM Company must own at least 11 flats (half, rounded up). Once these tests have been successfully passed, the Right to Manage can proceed.