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Has your landlord recently served a Section 5 Notice on you? 

If so, this will be because your landlord is looking to dispose with some or all of their freehold property.  They may, for instance, be selling the entire freehold, granting a head lease, or selling / gifting away some or all of the common areas.

What is a Section 5 Notice? 

When a landlord has an intention to part with some or all of their freehold property, they may need to comply with the Landlord and Tenant Act 1987 (“the Act”).

The Act only applies to particular disposals however, if the Act does apply, the landlord must offer the disposal to the qualifying tenants of the flats.

Depending on the type of disposal, there are a variety of Section 5 Notices so it is important that the landlord serves the correct one.  Depending on the notice to be served, the landlord will need to supply specific information within the notice.

The notice is, in effect, an offer for the leaseholders to buy rather than the landlord selling it to someone else.  It is also commonly known as a “right of first refusal”.

The Act does set specific timescales and conditions to be met in order for the leaseholders to accept the offer which is why if you receive a Section 5 Notice from your landlord and are contemplating what to do, it is worth seeking some advice quickly to ensure that you do not miss a potential opportunity to buy the landlord’s property.

What happens if a landlord doesn’t comply?

As mentioned above, the Act only applies to particular disposals however, if the Act does apply and the landlord fails to comply with the Act when disposing with their property, they could be committing a criminal offence and be liable to a fine.

If you have you recently received a Section 5 Notice from your landlord, or are you a landlord who is looking to sell some of your freehold property?  If so, contact Dani Green on 020 7288 4751 or danigreen@boltburdon.co.uk

Dani Green

020 7288 4751
07912 248 823
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