RIGHT OF 1st REFUSAL

The Right of First Refusal, created by the Landlord and Tenant Act 1987, is similar to collective enfranchisement in that it involves the purchase of the landlord’s freehold interest by the leaseholders. It is different, however, in that it is the Landlord who initiates the process not the Leaseholders. The Landlord wants to sell and may in fact already have a purchaser. The law required that he first offers the freehold to the leaseholders upon the same terms that he intends to sell. If more than half agree to buy and serve an acceptance notice within the stated time limit then the leaseholders and not the alternative buyer will buy. There are strict time limits which, if missed by even a day, can defeat the right of first refusal if not carefully kept to. The service we offer includes:


  • Prepare an acceptance notice (s6 Landlord and Tenant Act 1987) for signature and serve on Landlord


  • If required, form Limited Company as a vehicle through which to purchase the freehold


  • If required, serve a notice of nominee purchaser on Landlord


  • recommend a solicitor or licenced conveyancer to complete the legal formalities of completion and registration of your lease extension at the Land Registry (You can use your own lawyer)


  • Keep under review the statutory time limited


  • Keep you informed of developments