Wright Hassall acted for a residential landlord in the
sale of a block of flats, and dealt with the Right of First Refusal
process which was required prior to sale.
The landlord was the liquidator of a company which owned the
freehold of a block of 15 flats in Birmingham. The liquidator
wanted to realise the asset and was approached by the
residents' management company who made an offer to purchase the
freehold.
However, before the sale could take place, the liquidator had to
follow the Right of First Refusal process set out in the Landlord
and Tenant Act 1987.
What is the Right of First Refusal?
Leaseholders of qualifying property have the right of first
refusal to purchase the freehold of their block when it is sold.
Even where the freeholder intends to sell to a residents'
management company or selected group of leaseholders, the process
must be followed.
