Q&As

A developer wishes to sell the freehold of a residential development. It has exchanged contracts for all the apartments but completion has not yet occurred. If the developer sells between exchange and completion of the apartments, must it comply with the right of first refusal provisions of the Landlord and Tenant Act 1987?

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Published on LexisPSL on 15/08/2016

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A developer wishes to sell the freehold of a residential development. It has exchanged contracts for all the apartments but completion has not yet occurred. If the developer sells between exchange and completion of the apartments, must it comply with the right of first refusal provisions of the Landlord and Tenant Act 1987?
  • Application
  • Qualifying Tenant
  • Percentage

Part I to the Landlord and Tenant Act 1987 (LTA 1987) gives qualifying tenants of flats a right of first refusal enabling them to purchase the interest of their landlord if and when he proposes to dispose of it. For further information, see Practice Note: Landlord and Tenant Act 1987—tenants' right of first refusal.

Application

Under LTA 1987, ss 1–20, the right of first refusal applies where premises:

  1. consist of the whole or part of a building

  2. contain two or more flats held by qualifying tenants, and

  3. the number of flats held by qualifying tenants exceeds 50% of the total number of flats contained in the premises

For further information, see Practice Note: Landlord and Tenant Act 1987—premises.

'The provisions of this part apply to a contract to create or transfer an estat

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