This is an example of a guide which can be sent to clients. It provides general guidance on tenants’ right of first refusal when a landlord plans to sell an interest in a building containing flats. This guide explains when qualifying tenants of flats must be offered the chance to buy their landlord’s interest before it is sold or disposed of. It covers who qualifies, the notice process, key deadlines and what tenants can do if the rules are not followed. What is the right of first refusal? The right of first refusal requires a landlord of a building containing flats to offer tenants the chance to buy the landlord’s interest in the property before disposing of it to someone else. An interest is a legal right in the property, such as ownership of the freehold or a lease. A ‘disposal’ can include a sale, the grant or transfer of a lease, giving someone an option to buy, or another transaction which creates or transfers an interest in the property. If the right applies, the landlord must normally

This Checklist identifies the main points to consider when dealing with a disposal of an interest in property that is (or may be) subject to the tenants’ right of first refusal under the Landlord and Tenant Act 1987 (LTA 1987). For further information and detailed guidance, see Practice Note: Tenants' right of first refusal—Landlord and Tenant Act 1987. Landlord • Is the proposed transferor ‘the landlord’? • If so, is the landlord ‘exempt’ or ‘resident’? In either of these cases, the right of first refusal does not apply. Disposal • Is the landlord entering into an arrangement which is a 'disposal' (this includes a contract to create or dispose of an estate or interest in land, an assignment of rights under such a contract, and a contract to assign rights under such a contract)? • If so, is it a 'relevant disposal', ie not the grant of a tenancy of a single flat (with or without appurtenant premises) or any other disposal excluded under LTA 1987? Premises • Does the proposed disposal

Notice to terminate lease To: [name of Landlord] (Landlord) of [address] From: [name of Tenant] (Tenant) of [address] Re: Lease dated [date]

Claim No. [insert claim number] [IN THE HIGH COURT OF JUSTICE] [BUSINESS AND PROPERTY DIVISION]] [Specify specialist court, list or sub-list and venue as appropriate] OR ]THE COUNTY COURT AT [insert location]] [BUSINESS AND PROPERTY WORK]] ] between: [insert name]        Claimant and [insert name]        Defendant _______________________________________ DEFENCE _______________________________________ 1 The Defendant opposes the Claimant’s claim to terminate the tenancy granted by the Claimant to the Defendant. The Defendant does not admit that the Claimant intends to [demolish or reconstruct the premises comprised in the holding or a substantial part of those premises or to carry out substantial work of construction on the holding or part thereof], and puts the Claimant to proof of the same. 2 [The Defendant does not rely on section 23(1A)

Leasehold Reform, Housing and Urban Development Act 1993, section 41(3)[(a) OR (b)] REQUEST FOR INFORMATION In connection with the property known as: [insert address of flat] (the Flat) To [insert name of freeholder or superior landlord] [incorporated in England and Wales with company registration number [insert company registration number]] of [insert address of freeholder or superior landlord] From [insert name(s) of qualifying tenant(s) of the Flat] of [insert address], being an address in England or Wales for service of notices for the purpose of Leasehold Reform, Housing and Urban Development Act

Leasehold Reform, Housing and Urban Development Act 1993, section 41(1)[(a) OR (b)] REQUEST FOR INFORMATION In connection with the property known as: [insert address of flat] (the Flat) To [insert name of immediate landlord or receiver of rent] [incorporated in England and Wales with company registration number [insert company registration number]] of [insert address of immediate landlord or receiver of rent] From [insert name(s) of qualifying tenant(s) of the Flat] of [insert address], being an address in England or Wales for service of

1 Assignment of whole conditions precedent—offer back The Tenant must not assign the whole of the Property: 1.1 unless it has either: 1.1.1 given written notice to the Landlord pursuant to the provisions of paragraph 1 of the Schedule (Tenant’s notice of proposed assignment) and the Landlord has not served a written counter-notice on the Tenant pursuant to the provisions of paragraph 1.2 of the Schedule (Landlord’s counter-notice); or 1.1.2 made a written offer to the Landlord pursuant to the provisions of paragraph 2 of the Schedule (Tenant’s offer to surrender) and the Landlord has not accepted the offer under the provisions of paragraph 2.2 of the Schedule (Failure to accept surrender);

1 Tenant’s option to purchase reversion 1.1 Definitions In this clause 1, the following additional definitions apply: [Deposit • £[amount];] [Independent Surveyor • an independent chartered surveyor who has at least [10] years’ experience of valuing property of a comparable type and in a comparable location to the Property;] [Interest • interest at a rate of [4]% above the base rate of [name of bank];] Landlord’s Interest • the Landlord’s [freehold OR leasehold] reversionary interest in the Property [registered at HM Land Registry under title number[s] [number] [and [number]] ]; [Landlord’s Solicitors • [name] of [address] (reference: [details]) or any other solicitors the Landlord notifies to the Tenant [in writing];] [Minimum Price • £[amount in figures] [([amount in words] pounds)];] Option • the option to require the Landlord to transfer the Landlord’s Interest to the Tenant on payment of the Price; Option Notice • a notice in the form attached to this Lease at Appendix 3; [Option Period • the period starting on [date] and ending on [date] (both dates inclusive);] Price • [£[amount] [(subject to indexation in accordance with clause 1.7)] OR the amount agreed or determined in accordance with clause 1.8.2]. 1.2 Grant of Option 1.2.1 The Landlord grants the Option to the Tenant. For the avoidance of doubt, the benefit of the

This Practice Note explains the principles and pitfalls involved in the reinstatement of tenant’s alterations. Reinstatement of alterations can be very contentious. Landlords may be left with a property in an unlettable state or tenants may find that they are called upon to undertake reinstatement works, which could take months, at the eleventh hour. This Practice Note does not deal with: • reinstatement following damage by an insured (or uninsured) risk—see instead Practice Notes: Negotiation guide—insurance clauses—commercial leases and Insurance issues for tenants • dilapidations in relation to disrepair—see instead: Dilapidations—overview No reinstatement obligation If there is no obligation to reinstate the demised premises, a lawful alteration becomes part of the premises and the tenant cannot be made to reinstate. The tenant must yield up (ie return) the premises with the alterations, although it has a right to remove any tenant’s fixtures up until the last minute of the term. See Practice Note: Fixtures and fittings. In Peel Land and Property v TS Sheerness Steel, the Court of Appeal confirmed that while a tenant is, in principle,

This Practice Note explains the remedies available to a tenant who has applied for consent to alter in circumstances where consent is not to be unreasonably withheld, and the landlord has unreasonably refused the request. For an explanation of the circumstances in which a landlord must not unreasonably withhold consent, and what constitutes an unreasonable refusal, see Practice Note: Landlord’s consent to alterations. For the landlord’s remedies where the tenant makes alterations without consent, see Practice Note: Landlord’s remedies for alteration without consent. Complete alterations without consent Where consent has been unreasonably withheld, a tenant is entitled to proceed without it. The requirement for

This Practice Note explains the remedies available to a tenant who has applied for consent to assign or underlet in circumstances where consent is not to be unreasonably withheld, and the landlord has unreasonably refused the request. For an explanation of the circumstances in which landlords must not unreasonably withhold consent, and what constitutes an unreasonable refusal, see Practice Note: Landlord's consent to assign or underlet. For the landlord’s remedies where a tenant assigns or underlets without consent, see Practice Note: Landlord’s remedies for assigning or underletting without consent. Assign or underlet without consent Where consent has been unreasonably withheld, a tenant is entitled to assign or underlet without it. The requirement for consent no longer applies. For practical purposes, this is very unsatisfactory for a tenant. It may be uncertain whether it is correct to conclude

This Practice Note explains the remedies available to a tenant who has applied for consent to change use in circumstances where consent is not to be unreasonably withheld, and the landlord has unreasonably refused the request. For an explanation of the circumstances in which a landlord must not unreasonably withhold consent, and what constitutes an unreasonable refusal, see Practice Note: Permitted use, change of use and preventing a competing use — leases. For the landlord’s remedies where the tenant breaches a user clause, see Practice Note: Landlord’s remedies for change of use without consent. Change the use without consent Where consent has been unreasonably withheld, a tenant is entitled to go ahead without it. The requirement for consent