Right of First Refusal
Have you received a Section 5 Notice pursuant to Part I of the Landlord and Tenant Act 1987 from your landlord?
If the answer is yes, then your landlord is seeking to dispose of its reversionary interest in your building.
The 1987 Act/Right of First Refusal legislation protects leaseholders by ensuring that they get the opportunity to purchase before the freehold or head lease of their building is sold.
If you believe that your landlord may have sold without complying with this legislation, then please do contact us for advice on whether the new owner can be forced to sell the interest back to you and your neighbours.
There are strict time limits for responding to offers and more than 50% of the flat owners will have a short window in which to decide whether to proceed and purchase the freehold collectively. If you have been served with Notice do contact us without delay to obtain our complementary next step guide, matter budget and expert view on whether it is right for you to collectively acquire the interest via this process.
For initial advice, a quotation or to arrange a meeting with one of our solicitors, please contact us on 020 7940 4060 and ask for a member of the Leasehold Service Team.
Alternatively, email us at firstname.lastname@example.org
Acquiring the freehold under this process can lead to several benefits:
The right of first refusal enables leaseholders to collectively make decisions that align with their interests. Matters such as repairs, improvements, or alterations, can be made collectively without being subject to the preferences of an external purchaser.
Owning the freehold gives leaseholders a greater degree of control over the service charges, ground rent and lease lengths. Acquiring a share of the freehold can also increase the value and marketability of the individual flats.
Protection against a Sale to a Third Party
The right of first refusal is a safeguard against unfavourable sales to third-party portfolio landlords whose business model is to generate profits from the building service charge.