Is a Section 5 notice needed?

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    Is a Section 5 notice needed?

    Our freeholder has agreed to sell the freehold to us informally.

    Their solicitor has since contacted our (leaseholders’) solicitor requesting payment for a section 5 notice.

    Our solicitor has flagged this as unnecessary given we the leaseholders are entering collective enfranchisement, but the freeholder’s solicitor is insisting.

    My question is, what is the benefit to the freeholder of serving the section 5 notice and why does it fall to us to pay if we have already requested the purchase.


    If the majority of the lessees are buying the freehold, then there is no need for the freeholder to serve a Section 5 Notice


      What's your authority, Stephen?


        If the freehold is sold to the majority of tenant without a section 5 notice the lessee who buy cannot then claim that their rights are breached as they are of course a party to the transaction - they would have the right to insist that the freehold is transferred by them to them at the price they paid - which of course would be utter nonsense


          Thank you sgclacy, very helpful as always.


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