Section 5 Notices – Right Of First Refusal
When a landlord receives an offer that he is prepared to accept for the freehold of a building that is divided into flats, he must by law give the lessees the right of first refusal. In some circumstances notices will not need to be served, but in the majority of ground rents that are sold it will be necessary to give the lessees the right of first refusal.
It is not a complicated procedure but the notices need to be served correctly on each of your lessees and you must also retain proof of service/postage from the post office. The lessees have two months from the date of the notice to decide whether or not they want to go ahead with the sale.
Correct Procedure For Service Of Notices
Provided the lessees qualify to exercise their rights they will need to serve a counter notice on you before the two months have expired in order to move to the next step. This is only a very brief summary of what happens. If you would like to talk to us regarding these notices please give us a call. Our company will serve these notices on your behalf should we agree to buy your ground rents and will deal with the lessees on your behalf.