Q&As

If a freehold is owned by three individuals and one of them sells their share, would that be caught by the right of first refusal under the Landlord and Tenant Act 1987? If it is, can one of the tenants purchase that share or do all of the qualifying tenants have to be involved?

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Produced in partnership with Georgia Whiting of 4 King’s Bench Walk
Published on LexisPSL on 11/10/2018

The following Property Q&A produced in partnership with Georgia Whiting of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • If a freehold is owned by three individuals and one of them sells their share, would that be caught by the right of first refusal under the Landlord and Tenant Act 1987? If it is, can one of the tenants purchase that share or do all of the qualifying tenants have to be involved?
  • Does the right of first refusal apply where the freehold is owned jointly by three individuals, and only one of the individuals wishes to sell their share of the freehold?

If a freehold is owned by three individuals and one of them sells their share, would that be caught by the right of first refusal under the Landlord and Tenant Act 1987? If it is, can one of the tenants purchase that share or do all of the qualifying tenants have to be involved?

The right of first refusal is provided by Part I of the Landlord and Tenant Act 1987 (LTA 1987) as amended by the Housing Act 1996. Essentially, in certain circumstances, qualifying tenants will have the right of first refusal to purchase the freehold of a property when their landlord proposes to make a disposal affecting the whole or part of the premises.

Where LTA 1987 applies, the landlord will be prohibited from making a relevant disposal unless they have first served formal offer notices on the ‘qualifying tenants’ in accordance with LTA 1987, s 5. The landlord must also make the disposal in accordance with LTA 1987, ss 6–10.

The term ‘qualifying tenant’ is defined in LTA 1987, s 3 and means that every tenant of a flat in the premises to which LTA 1987 applies will be a ‘qualifying tenant’ for the purposes of LTA 1987, save for various exceptions contained within LTA 1987. These exceptions include a tenant under an assured tenancy, and a tenant whose landlord is also a qualifying

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