SGL1 Ltd v FSV Freeholders Ltd

In a judgment handed down on 13^th March 2026 in the case of SGL1 Ltd v FSV Freeholders Ltd [2026] EWCA Civ 267, John de Waal KC and Gemma de Cordova have overturned long-established authority on the question of what is a 'building' for the purposes of a notice served under section 5 of the Landlord and Tenant Act 1987.

The decision is important reading for those concerned with transactions involving residential leasehold property where Part I of the 1987 Act may apply.

Part I of the Act is concerned with tenants' right of first refusal: when disposing of the freehold of flats held under long leases the landlord must first offer the premises on the same terms to the tenants.

As long ago as February 2020 the landlord of Blocks A-E Fox Street, Liverpool had served two section 5 notice on the tenants, one for block A and the other for blocks B, C and E which were interlinked (block D had been demolished).