Skip to main content
Beta

We're testing our new website – please tell us what you think and help us improve (opens in new tab).

Right of first refusal

Qualifying criteria

In this guide

The right of first refusal (RFR) only applies if certain conditions or requirements are met by the building, the landlord and the leaseholders.

Building requirements

The building must be either:

  • a separate, detached building, or
  • (in some cases) part of a building that could be divided vertically from another part

For example, 1 or more floors of flats above a shop would not qualify for RFR, but one of a pair of semi-detached houses converted into flats would.

The building must also:

  • contain at least 2 flats
  • have at least 50% of its internal floor area as residential (not including common areas such as staircases)
  • have more than 50% of flats held by qualifying tenants (see below)

Landlord requirements

The landlord must be either:

  • your immediate landlord, or
  • their landlord, but only if the immediate landlord has a lease on the property for less than 7 years (or one that can be terminated within the first 7 years of the term)

Your immediate landlord is the landlord who:

  • you pay rent or ground rent to
  • gets possession of the flat when your lease expires
Example scenario explaining "Immediate landlord" - Show Contents

You own a flat in a block of flats that is owned by a freeholder named Smith, who has granted a 100-year lease on the building to Brown, the headlessor. Brown has granted 99-year leases to each of the separate flats.

Brown is your immediate landlord and is required to give you right of first refusal if he sells his interest (the headlease).

If Smith wanted to sell the freehold, he is not required to give you RFR because your immediate landlord’s lease is more than 7 years.

Exempt landlords

If the building is a house or other building converted into flats, the right of first refusal does not apply if your landlord lives in the building (resident landlord) and has used one of the flats as their only or main residence for at least a year immediately before the sale.

Resident landlords in a purpose-built block of flats are not exempt.

Right of first refusal also does not apply when the landlord is a:

  • charitable housing trust
  • local authority
  • registered provider (housing association)
  • unregistered mutual housing association

It does not apply when the landlord:

  • grants a lease or tenancy on one or more individual flats
  • transfers their interest to a company that has been associated with the landlord’s company for at least 2 years
  • becomes bankrupt and transfers their interest to a receiver, liquidator or trustee as part of the bankruptcy proceedings
  • disposes of their interest because of a compulsory purchase order
  • is a charity and sells their interest to another charity
  • sells to the Crown or central government
  • (sometimes) sells or transfers their interest to other members of their family - there are exceptions and the rules are complex so get advice

Tenant requirements

To be a qualifying tenant, you must:

  • hold the leasehold or a fixed or periodic tenancy (see exceptions below)
  • be a tenant or leaseholder of no more than 2 flats in the building

Exceptions

You do not have right of first refusal if your tenancy is:

  • shorthold
  • assured
  • business
  • agricultural
  • dependent on employment
  • a sub-tenancy of any of the above
Last updated:
17 December 2025
Next review:
17 December 2027