Jurisdiction(s):
United Kingdom

Registration-gap equitable lessees qualify for RTM; failure to serve participation notice invalidates claim—strict CLRA 2002 s78 compliance (Avon Freeholds v Cresta Court, Court of Appeal, England and Wales)

Published on: 12 August 2025

Published by a LexisNexis Property Disputes expert

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Article summary

Avon Freeholds Ltd v Cresta Court E RTM Company Ltd [2025] EWCA Civ 1016

What are the practical implications of this case?

The Court addressed what it termed two ‘interesting questions’ ([16]) with practical effects reaching beyond the RTM regime.

Question 1: Does a tenant holding a newly granted long lease, pending registration at HM Land Registry and thus valid in equity but not at law, qualify as a ‘qualifying tenant’ under CLRA 2002, s 75?
Question 2: If she is a ‘qualifying tenant’, did the omission to serve her with a participation notice render invalid the claim notice later issued by the Respondent RTM company?

The Court’s answer to both questions was an unequivocal ‘yes’.

Question 1

It is widely recognised that HM Land Registry is experiencing substantial delays. This is not merely exasperating but also carries significant legal consequence. Where a disposition must be perfected by registration under section 27 of the Land Registration Act 2002, the disposition ‘does not operate at law until the relevant registration requirements are met’ (s 27(1))...

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