Landlord and Tenant Act 1987

Product Information

Under the 1987 Act, however, the compensation due is simply the market value of the freehold interest. The subject building must contain two or more flats held by qualifying tenants and the number of flats held by qualifying tenants must exceed 50% of the total number of flats contained in the building. I had particular anxieties about the roof and Shaun went up and took a look, something all the other surveyors I spoke with wouldnt do.

They were very professional, everything progressed in a timely manner and the report was exactly what we needed. Then if it wishes to dispose of its interest (at least two years) in the future, it would be able to transfer the freehold to the associated company (an exempt disposal) and then sell the shares in that company to the purchaser.Below we set out the qualifying requirements and the issues particularly relevant to mixed use properties. A lease of a flat is expressly excluded from the right of first refusal, but there is no such exemption for a lease of a commercial unit.

If legal advice is taken early arrangements can be put in place so the requirement to serve a Section 5 Notice on investment disposals is not triggered. This can lead to delays in transactions as the landlord is required to serve an offer notice on the qualifying tenants giving them two months to accept the terms of the disposal.Following the two month notice period, if the landlord does not receive any response (or not enough of a response), then the sale can proceed with the third party within a period of 12 months beginning at the end of that notice period.