Compulsory acquisition of landlord’s interest by tenants of flats
Compulsory acquisition of landlord’s interest by tenants of flats

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Compulsory acquisition of landlord’s interest by tenants of flats
  • Compulsory acquisition of landlord's interest
  • Qualifying premises
  • Qualifying tenants
  • Preliminary notice
  • Application for acquisition order
  • Acquisition order
  • Effect of acquisition order
  • Discharge
  • Withdrawal

Compulsory acquisition of landlord's interest

An acquisition order under Part III of the Landlord and Tenant Act 1987 (LTA 1987), entitles certain long leasehold tenants of flats compulsorily to acquire their landlord’s interest in the building through a ‘nominated person’ if:

  1. the landlord has failed to comply with his obligations to repair, maintain, insure or manage the building, or

  2. the building has been managed for at least two years by a manager appointed under LTA 1987, Pt II

In either case, an order can only be made if the court thinks it appropriate to do so. In Maxwell, the High Court held this meant, when exercising its discretion, the correct starting point is whether, in order to deal satisfactorily with the situation described by the applicant tenants, there is no real alternative other than to make an acquisition order.

In many cases, the conditions which justify the making of an acquisition order will arise because the landlord is absent, and LTA 1987, Pt III contains specific provisions dealing with this situation. This is an alternative to the ‘missing landlord’ procedures which apply to an enfranchisement claim under the Leasehold Reform, Housing and Urban Development Act 1993.

Qualifying premises

An acquisition order may be made if:

  1. premises consist of the whole or part of a building, and

  2. two or