LTA 1987: tenants’ right of first refusal: qualifying criteria

by Practical Law Property and Practical Law Property Litigation

A practice note providing guidance on the tenants' right of first refusal under Part I of the Landlord and Tenant Act 1987 (LTA 1987). This note details the essential qualifying criteria that determine when the LTA 1987 applies to a property disposal, including analysis of qualifying premises, the number of qualifying tenants, the definition of a "landlord", and whether a transaction constitutes a "relevant disposal". It examines the scope of key terms such as "building", "flat", and "qualifying tenant", addressing the complexities that arise in mixed-use properties, residential estates, and disposals involving common parts, appurtenant premises or airspace. Furthermore, this Practice Note explores potential strategies for structuring transactions in both new and existing developments to manage and navigate the obligations imposed by the LTA 1987. 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.