Right of First Refusal

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Right of First Refusal

Are you a landlord selling the freehold of a block containing flats?

Are you a leaseholder of a flat who has received a notice advising that your landlord intends to sell?

Then you will need to know about the Right of First Refusal (RFR). The Landlord and Tenant Act 1987 requires  that when an interest in a block containing two or more flats is being disposed of, then the interest must first be offered to the leaseholders of the flats before it can be sold.

Failure to comply can result in criminal prosecution for the landlord and give the leaseholders the remedy of acquiring the interest even after it has been sold.

The leaseholders may first be aware of this when they are served with a “section 5 notice”. At least 50% of them can group together and exercise the right of first refusal purchasing the freehold from the landlord. This right applies whether the landlord is planning to sell privately or at auction.

This is different from the right of the leaseholders to compel the sale of the freehold (called collective enfranchisement) this is an opportunity for the leaseholders if the landlord is wiling to sell. The landlord dictates the terms and the leaseholders can exercise the option.

 

Landlords looking to sell

If you are a landlord thinking of disposing of all or part of a building containing flats then SLC can help you with advice on:

  • What a relevant disposal under the act is
  • What exceptions and exemptions there are to the RFR requirements
  • Serving notice on the leaseholders
  • Dealing with the conveyancing process.

 

Leaseholders looking to buy

If you are a landlord thinking of disposing of all or part of a building containing flats then SLC can help you with advice on:

  • What a relevant disposal under the act is;
  • What exceptions and exemptions there are to the RFR requirements;
  • Serving notice on the leaseholders ;
  • Dealing with the conveyancing process.

 

SLC Expert Solicitors

SLC solicitors can assist with advice tailored to you whether you are a leaseholder looking to purchase the freehold from your landlord, or a landlord looking to dispose of your freehold. We are equipped to support you throughout the process ensuring you and your assets are protected.

Whether you’d like to discuss things individually, or collectively with other leaseholders in your building, we can arrange a free initial consultation regarding your Right of First Refusal.

Contact us today on the form below.

 

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