LTA 1987: tenants' right of first refusal: offer notices and procedure

by Practical Law Property and Practical Law Property Litigation

A practice note that outlines the procedure for a landlord's disposal of premises where residential tenants have a right of first refusal under Part 1 of the Landlord and Tenant Act 1987 (LTA 1987). This note provides guidance on the landlord's obligation to serve formal offer notices on "qualifying tenants" in accordance with section 5 of the LTA 1987, covering the different notices for different types of disposals. It details the process for tenants to respond to the landlord's offer, including acceptance by the "requisite majority" and the nomination of a purchaser. The guidance also explores the steps following acceptance and nomination, the circumstances in which either the landlord or the nominated purchaser can withdraw from the transaction and the potential consequences of withdrawal. Furthermore, this practice note considers the options for a prospective purchaser seeking to protect their position, including the use of a section 18 notice, to ensure they acquire the property free from subsequent claims. This note is part of a series of practice notes on the LTA 1987. For the other notes in the series, see Property Litigation Practice notes: overview: right of first refusal.