Among the various rights that the Government has granted to long leaseholders is the right of first refusal.
This is a right for a majority (i.e. more than 50%) of the long leaseholders of a building divided into two or more residential flats to be given the opportunity to buy the freehold of their building from their Landlord in the event that he wishes to sell.
Before the Landlord has agreed terms for the sale of the freehold the owner must notify the long leaseholders of the building of the intention to sell and the terms agreed. Those leaseholders have a period of two months to notify the Landlord whether or not they wish to exercise the right of first refusal. To be able to exercise the right of refusal the majority of the leaseholders must say "yes".
Where a Landlord intends to sell the freehold or a leaseholder receives notice of lease sale. Tenants should always seek legal advice should the 'majority' wish to buy the freehold of the building.
Leaseholder Rights in Change of Landlord Southend
If the majority of the leaseholders choose to exercise the right of first refusal then the Landlord must either sell the property to them on the same terms as contained in the Statutory Notice or withdraw from the sale.
It often happens that the Statutory Notice is not served as required prior to the sale of the property. It may be because the transfer is accepted i.e. the Landlord is aware that the necessary majority of Leaseholders cannot be found. In these circumstances the leaseholders still have legal rights.
Landlord Duty in Freehold Purchase Essex
The new Landlord is under a duty to;
- Notify the leaseholders that he has taken over the freehold
- To inform tenants that rent and service charges are to be paid to the new owner
- To advise the leaseholders of the right of first refusal.
Leaseholders will wish to determine whether or not the right of first refusal applies to them and, if it does, whether they wish to exercise it. Unless the Statutory Notice described above was served in accordance with the legislation notwithstanding the fact that the sale has gone through the right of first refusal may still be exercised. There is a statutory right to obtain information about the transfer and in particular the terms of the contract. If the leaseholders are willing to meet and if there is a sufficient ''majority'' of leaseholders then an application can be made to the new Landlord to buy the freehold under the same terms that it was purchased.
Contact Adrian Dann & Company
If you have not received a Statutory Notice or you were not offered the right of first refusal, call 0808 129 5757 or email us for a free half hour consultation.
