Jump to content

Section 5A - Offer from the landlord of my leasehold property to purchase the lease - what should I do?


Recommended Posts



Having bought a leasehold flat with my parents a couple of years ago I recently started looking at how I could create a property portfolio, having been reinvigorated by the property podcasts. Just as I start looking into this a come across my first potential issue with my existing leasehold flat, a Section 5A right of first refusal from my landlord to purchase the freehold.


My understanding is that, assuming sufficient leaseholders are interested in taking advantage of the offer, we can purchase the freehold from the landlord. If not, the landlord can sell the freehold to another company and then they can potentially do what they want in terms of future service charges, etc to recover their investment.


This is a completely new concept to me and I will be seeking legal advice this week; however, I wanted to get people's input on here. In particular:


1. Can anyone recommend a legal firm that specialises in leasing matters?

2. If sufficient tenants want to purchase the freehold (I think it needs to be at least 50%), but not everyone does, what happens? The freehold has been offered at £800k between 100 flats (of varying sizes). Would those that want to buy the freehold buy the whole freehold between them or just their portion? What would happen to those that are not interested? How would the building be managed if there were a split?

3. I am aware that there is also the possibility for the tenants to group together and form a right to manage company. Can anyone provide any information on this option and how it would impact the landlord's wish to sell the freehold?

4. Is there a way, as a tenant, to gain the contact details of the other tenants to discuss this issue? I believe the flats are predominantly BTL and, therefore, I imagine just sending a letter to each property (or putting a notice on the notice board) will probably not get a quick response...


I wasn't expecting this to be my first PH post but I guess this is my baptism of fire...!


Any advice would be greatly received.



Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...