Understanding The Right Of First Refusal (ROFR)

Part 1 of the Landlord and Tenant Act 1987 (the 'Act') grants certain residential tenants the right of first refusal when a landlord proposes to make certain disposals of or affecting the whole or part of its premises.

What is the right of first refusal (ROFR)?

Where the Act applies, a landlord is prohibited from making the disposal (or, where applicable, contracting to do so) unless the landlord has first served a formal "offer" notice upon the "qualifying tenants" of the flats, giving them a prior opportunity to take the disposal.

It is open to the "requisite majority" of the qualifying tenants to accept the landlord's offer of the right of first refusal. If the tenants do not accept the offer, the landlord can only proceed with the proposed disposal to a third party within a limited timeframe and on the same terms as those set out in the offer notices.