The right of first refusal
If you have found that your landlord has sold the superior interest to the long leasehold of your flat to a third party without consulting you or your neighbouring tenants, the landlord may be in breach of the obligation to first offer to sell its interest to the tenants of the building.
If the premises being sold contain two or more flats held by qualifying tenants and form more than 50% of the total of number of flats in the building, the landlord should have first serviced a notice offering to sell to those qualifying tenants.
But who constitutes a qualifying tenant? The relevant legislation refers to every residential tenant of a flat except:-
- Tenants under a protected shorthold tenancy, assured tenancy, an assured shorthold tenant (commonly known as AST) or assured agricultural occupants.
- A tenant under a business (commercial) tenancy.
- A tenancy incidental to that tenant’s employment.
- A tenant who is the tenant ofthree or more flats in the building.
- A tenant whose landlord is also a qualifying tenant (i.e. there can only be one qualifying tenant per flat and that will be the tenant with the superior interest to the other).
For further information regarding the right of first refusal or freehold enfranchisement, please contact Nicky Cleightonhills on 0207 7035034 or Ncleightonhills@meaby.co.uk.
