This Practice Note looks at the effect of Part 1 of the Landlord and Tenant Act 1987, including the circumstances in which the right of first refusal applies, the landlord’s obligation to sever transactions to dispose of buildings separately, how to identify a relevant landlord, a qualifying tenant, and a relevant disposal, the procedure for serving offer and acceptance notices, and the consequences of tenants failing to accept the offer. It also looks at enforcement, the tenants’ rights against a purchaser, and avoidance methods. The Landlord and Tenant Act 1987 (LTA 1987), Part 1 gives qualifying tenants of flats a right of first refusal enabling them to purchase the interest of their landlord if and when the landlord proposes to dispose of it. The right is framed in negative terms, prohibiting the landlord from making a relevant disposal without first serving a notice under LTA 1987, s 5 (commonly referred to as a ‘section 5 notice’) on the qualifying tenants and requiring that the disposal is made in