Solicitors in Essex & London
If a landlord is proposing to dispose of a freehold, Part 1 of the Landlord and Tenant Act 1987 (LTA 1987) gives certain residential tenants a right of first refusal.
Our Property Litigation Team is well versed in dealing with, and also challenging, the process of the right of first refusal and are able to make the process as smooth as possible. They are members of ALEP, The Association of Leasehold Enfranchisement Practitioners, who are a professional membership association of organisations experienced in the residential leasehold sector.
There are a number of criteria that a tenant would have to meet and as well as rules that a freeholder must consider. For more information on these considerations please read our Legal Hub article “When Does the Right of First Refusal Apply and the Benefits” (link) Once both the tenants and landlord are satisfied that the criteria have been met, there are a number of steps involved in the Right of First Refusal process:
There are a number of requirements which the tenants and the building must comply with to be eligible:
A Landlord will initially serve a S.5 Notice. This notifies the tenants of the proposed disposal and gives them two months to respond. The tenants then need to take the following steps:
The Tenants then respond by serving a S.6 Notice. This notice accepts the proposed terms contained in the S.5 Notice.
If the disposal is a sale on the open market:
If the disposal is by auction:
Once the S.5 Notice is accepted the tenants become liable for the landlord’s reasonable surveyor costs and reasonable legal costs and other costs specified in the S.5 Notice.
The tenants will have to pay the value of the freehold to the landlord.
Pinney Talfourd have experienced and professional solicitors who regularly deal with the right of first refusal process and challenging right of first refusal claims.
We have a strong working knowledge of the LTA 1987 framework and the conveyancing process to ensure a smooth process from service of notices to registration.
If you feel that you require further legal advice relating to Right of First Refusal, feel free to contact any of our residential property litigation solicitors directly to discuss your legal issues in more detail. Our team offers consultations in any of our five offices across Essex and London, or, if more convenient, we are happy to meet you onsite at your own premises.