Q&As

If a freehold to a house, has been converted into three flats and the freeholder wishes to transfer the freehold title to one of the leaseholders for nil consideration, if the other two flat owners have agreed to this arrangement and as such the freehold is not being offered either by auction or on the open market for sale, must the freeholder serve formal notices under s 5 of LTA 1987 to all leaseholders before the transaction can proceed?

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Produced in partnership with Helen Galley of XXIV Old Buildings
Published on: 05 April 2017
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Section 1 of the Landlord and Tenant Act 1987 (LTA 1987) provides that:

'...a landlord shall not make a relevant disposal affecting any premises to which at the time of the disposal this Part applies unless

(a) He has served a section 5 notice on the qualifying tenants in the building granting rights of first refusal on them; and

(b) The disposal is in accordance with sections 6 to 10.'

The building in this case is a converted house. It has been converted into three flats and as the question refers to flat owners it is

Helen Galley
Helen Galley

Helen has built up a reputation as a well-respected commercial Chancery practitioner with an emphasis on property and trusts related issues. She has built up extensive and wide ranging expertise in both non contentious and contentious property matters ranging from small scale cases to multi-million pound developments. Helen has also acted in a wide range of commercial and business disputes in areas as diverse as travel, hire purchase, the media, entertainment, IPR, IT and e-commerce. Contentious and non-contentious trusts matters, both on and offshore, are a regular feature of her caseload. Helen is a member of STEP, ACTAPS, the Property Bar Association, the Chancery Bar Association and IAL as well as an accredited mediator. Helen is recommended as “a first-rate advocate” in Legal 500 2015 for private client (trusts and probate), partnership and professional negligence. She is said to be “consistently able to provide excellent advice in a charming and friendly style” and is “responsive, hugely supportive and extremely user-friendly”.

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Jurisdiction(s):
United Kingdom

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