Mind the registration gap

The High Court decision in Bennets Courtyard Limited v Bennets Courtyard Airspace Limited [2026] EWHC 1119 (Ch) provides an important warning for anyone preparing a collective enfranchisement claim where the freehold has recently been sold.

The case confirms that, during the period between completion of a transfer and registration of the purchaser at HM Land Registry—the familiar “registration gap”—the relevant freeholder for the purposes of the Leasehold Reform, Housing and Urban Development Act 1993 remains the registered proprietor.

A section 13 initial notice served only on the purchaser awaiting registration will therefore be invalid.

That may appear technical. In practice, however, getting this wrong can cause the entire claim to fail.

Right to Manage

The Right to Manage (RTM) was introduced in 2002 giving flat owners a no fault right to collectively take over the management functions in respect of their building.

Leaseholders, acting via an RTM company, can take control of services, repairs, maintenance, improvements, and insurance in respect of their building.

The Draft Commonhold and Leasehold Reform Bill

The government announced the introduction of the draft Commonhold and Leasehold Reform Bill in January 2026. This Bill proposes several reforms to the current flat ownership system, including:

· A ban on new flats being sold as leaseholds – they would need to be sold as commonhold properties, which the Government is pushing to become the default form of flat ownership; and

· A cap on ground rents at no more than £250 pa, which will be reduced to a peppercorn after a 40-year transitional period has passed.

The Housing, Communities and Local Government (‘HCLG’) Committee has now launched a short public inquiry into the Government’s draft Commonhold and Leasehold Reform Bill (‘the Bill’), which was published for pre-legislative scrutiny on 27 January 2026.