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Certified Chartered SurveyorsSection 5 Notice (Right for First Refusal)
If a Landlord wants to dispose of a Freehold, the legal procedures are relatively complex. Initially, the Freeholder must first offer the long Leaseholder with a “Right of First Refusal”. This means that before they sell it on the open market, they must first offer the long Leaseholders of the building the opportunity to purchase the Freehold.
In order to fulfil the legislative obligations, the Landlord must serve a Notice, subject to Section 5 (S5) of the Landlord & Tenant Act 1987. This notice gives the option for a qualifying majority (50% plus) of the Leaseholders to serve Acceptance Notices to confirm they wish to purchase upon the terms proposed in the Landlord’s S5 Notice.
Extend the lease term by an additional 90 years.
The Leasehold Reform, Housing & Urban Development Act 1993 (as amended) (LRHUDA 1993), gives long Leaseholders of flats the opportunity to extend the lease term by an additional 90 years and as a result pay no further ground rent. This is subject to meeting certain criteria.
We offer full valuation and negotiation services concerning the lease extension process for our clients. Extending your lease requires expert advice so please contact us today for your free initial consultation
Contact Us TodayFrom receipt of the S5 Notice, the Leaseholder will have a two months period to serve their Acceptance Notices
S5 Notice Acceptance Notice
From receipt of the S5 Notice, the Leaseholder will have a two months period to serve their Acceptance Notices. If Acceptance Notices are served within this period, the Leaseholders will be free to nominate the name of the purchaser. Alternatively, if this notice is not served within this period, the Landlord will then be free to sell to someone else of their choice.
The only pre-requisite is that the Landlord cannot sell on any lesser terms than those proposed in the S5 Notice.
We assist you with the entire S5 Notice process
We can act on behalf of both the Landlord selling the Freehold or the Leaseholders who have received a S5 Notice from their Landlord; whatever your situation, we are happy to assist you with the entire S5 Notice process and advise of your rights, the issues involves and what the Freehold is actually worth.