Right to Manage – Shared Ownership

The Upper Tribunal (Lands Chamber) considered when a shared ownership lease would be a long lease for the purposes of section 76 of the Commonhold and Leasehold Reform Act 2002.

Under section 76(2), a lease could be a long lease if:

• It was granted for a term exceeding 21 years and;
• If it was a shared ownership lease, where the tenant’s share was 100% .

Section 76(2) was confusing, because the leases in question were all granted for more than 21 years, but the tenants held shares of less than 100%.

The tribunal found that section 76(2) should be read as a series of “gateways”, if either either of the criteria were passed then they were long leases. The draftsman did not intend section 76(2) to exclude a shared ownership lease.