Right of First Refusal
Outline of the right of pre-emption given to qualifying tenants when their immediate landlord is disposing of his interest.
Our client was a leaseholder of a flat, one of three in a converted house. The landlord had just received a substantial offer to buy the freehold from an outside party but approached the leaseholders first to see if they wished to make him an offer. At the same time he suggested they have a look at the LEASE website for advice.
The leaseholders contacted LEASE and an adviser was able to explain their rights under the Right of First Refusal. The freehold must be offered first to qualifying leaseholders before being offered on the open market. When the freehold was acquired seven years beforehand the landlord failed to serve an offer notice on the leaseholders. The landlord was in breach of the law and when the leaseholders brought this to his notice, he admitted his fault and offered the freehold to all lessees at no cost as he had originally acquired it at no cost to himself.
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