Q&As

What is the process where leaseholders of a block of flats have received a section 5D notice under the LTA 1987?

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Produced in partnership with Elizabeth England
Published on LexisPSL on 12/09/2016

The following Property Q&A produced in partnership with Elizabeth England provides comprehensive and up to date legal information covering:

  • What is the process where leaseholders of a block of flats have received a section 5D notice under the LTA 1987?
  • Offer notice
  • Nominated person
  • Refusal of the offer
  • Acceptance of the offer
  • Landlord sends a contract
  • Contract requirement
  • Qualifying tenants complete the contract
  • Sale by auction

What is the process where leaseholders of a block of flats have received a section 5D notice under the LTA 1987?

A notice under section 5D of the Landlord and Tenant Act 1987 (LTA 1987) is one which provides a tenant with a ‘right of first refusal’ to purchase the landlord’s interest in land. See Practice Note: Landlord and Tenant Act 1987—pitfalls and practical tips.

Offer notice

When the landlord intends to dispose of his interest in the land, he will serve a notice on the tenants who qualify to be given a right of first refusal. See Practice Note: Landlord and Tenant Act 1987—tenants' right of first refusal.

The notice must comply with the LTA 1987, s 5A to LTA 1987, s 5E. It must be in writing and sent by post.

After the notice has been sent, the landlord cannot accept any other offer or otherwise dispose of his interest in the land in the period that has been set out in the notice, except to a person nominated by the required majority of qualifying tenants.

Nominated person

The qualifying tenants must nominate a person who will deal with the transaction on the other qualifying tenants’ behalf. This is a person elected by majority. A notice of the nomination must be sent to the landlord with an acceptance of the offer. See Practice Note: Landlord and Tenant Act 1987—what

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