Your RightA landlord who wishes to dispose of property containing flats must give the tenants of those flats, the opportunity to purchase the freehold before selling it to anybody else. These rights are set out in the Landlord and Tenant Act 1987 (‘the 1987 Act’).
There are two ways in which the landlord may sell their interest in the property: 1. By offering the right to the qualifying tenants; or2. By disposing of it at auction. Both courses of action require certain procedures to be followed. Brethertons would be pleased to guide you through on a step-by-step basis. What Happens if the Landlord Fails to Comply?If the Landlord sells to someone else without giving the qualifying tenants the opportunity to buy, or if he sells on better terms after the qualifying tenants have rejected the offer, the Landlord commits a criminal offence punishable by a level 5 fine (maximum £5,000).
Tenants also have a right to be notified of a new purchaser. The notice must also state the tenants right to buy the property from the new purchaser on the same terms and for the same price that was paid. Failure to do this is a criminal offence punishable by a level 4 fine (maximum £2,500).
It is vitally important for Landlord and prospective purchasers to take advice on the statutory procedures so as to ensure their obligations are fulfilled. Do I Qualify?The Right of First Refusal applies to the disposal of any property containing two or more flats held by qualifying tenants. Legislation also sets out certain exceptions.
Rights of first Refusal is a complicated area of law and specialist advice should always be taken.If you are a Leaseholder or a Landlord and wish to discuss your case with us, please contact:
Yashmin MistrySolicitorTel: (01295) 661 453Email: yashminministry@brethertons.co.uk
