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Residential Property Management Group

I have received a section 5A notice. What does this mean and how do I respond?

Updated: Sep 14, 2020

Section 5A notice is served on leaseholders when the landlord intends to sell the freehold. There is a legal obligation on landlords to serve the notice to purchase the freehold on leaseholders before they sell on the open market. This is called the right to first refusal.

You should refer to the notice in order to establish the date for acceptance. Your landlord must give you at least 2 months to respond. A valid acceptance notice has to be collectively served by the requisite majority of the qualifying tenants. This is 51% of the flats which are held by qualifying tenants. The leaseholders accepting must nominate a purchaser. This could be a company that they form to take over ownership of the freehold.

The Right of First Refusal can be a difficult process. We recommend you get professional help from a solicitor and surveyor with experience in this area.




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