Q&As

Does the right of refusal contained in Part I of the Landlord and Tenant Act 1987 apply to a sale pursuant to a charging order?

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Produced in partnership with Alexander Campbell of Field Court Chambers
Published on LexisPSL on 18/09/2018

The following Property Disputes Q&A produced in partnership with Alexander Campbell of Field Court Chambers provides comprehensive and up to date legal information covering:

  • Does the right of refusal contained in Part I of the Landlord and Tenant Act 1987 apply to a sale pursuant to a charging order?
  • The right of first refusal
  • A relevant disposal
  • Excluded disposals
  • Mortgaged land

Does the right of refusal contained in Part I of the Landlord and Tenant Act 1987 apply to a sale pursuant to a charging order?

The right of first refusal

Under Part I of the Landlord and Tenant Act 1987 (LTA 1987), a landlord may not make ‘a relevant disposal’ (as to which, see below) affecting any qualifying premises unless a particular procedure is followed. That procedure is laid down in LTA 1987 and, in essence, requires a landlord to serve a notice with respect to the disposal on the qualifying tenants of the flats contained in those premises and then to make the disposal in accordance with specified requirements which are contained in LTA 1987, ss 6–10.

The notice which must be served on the qualifying tenants is a notice pursuant to LTA 1987, s 5. Such a notice essentially gives the tenants the opportunity to purchase the premises on the same terms as the proposed sale.

A relevant disposal

LTA 1987, s 4 defines the term ‘relevant disposal’ as the disposal of any estate or interest in any common

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