Wednesday 16 August 2017
My landlord wants to sell their freehold interest in my flat, what does this mean?
A landlord is prohibited from disposing of their freehold interest in a block of flats without first serving notices on the flat owners offering to sell it to them collectively. This is known as the right to first refusal. The first a flat owner will usually know regarding the landlord seeking to sell the freehold of a block of flats is when they receive a notice.
Over 50% of the qualifying flat owners must participate in order to excerise their right to buy the freehold. For example, in a block of 6 qualifying flats, 4 must participate. We can assist with giving you advice on the process, gathering sufficient support from neighbouring owners, serving notice in response, company formation and gathering monies to proceed with the purchase.
You should take advice if the landlord sells the block without first consulting the flat owners. A landlord commits a criminal offence if they fail to give flat owners the right of first refusal. More importantly this also gives the flat owners the potential right to acquire the freehold from the new owner provided they act promptly.