Right of first refusal rules

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Right of first refusal rules

    Question please-

    Two leasehold flats, freeholder offers right of first refusal to both leaseholders. Leaseholder A rejects the offer and leaseholder B cannot act aloneas below the required 50% to exercise right.

    The freeholder is then free to sell on the open market?

    Leaseholder A changes mind and approaches freeholder to sell to them.

    Is freeholder free to sell to whoever he wants, even leaseholder that previously rejected offer?

  • #2
    Originally posted by daves59 View Post
    Is freeholder free to sell to whoever he wants, even leaseholder that previously rejected offer?
    Yes, but not at a lower price or better terms than the original offer.
    I accept no legal responsibility for comments/advice I make on this forum. Please check with a solicitor before acting on statements made in a public forum.

    Comment


    • #3
      Thanks for reply

      So as soon as one or other leaseholder rejects offer, the process ends and freeholder has complied with the act, but freeholder cannot change terms in the offer for 12 months if selling on?

      Comment


      • #4
        Yes. Now make the same offer to the Freeholder yourself. That will put the Cat amongst the pigeons.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


        • #5
          Originally posted by leaseholdanswers View Post
          Yes. Now make the same offer to the Freeholder yourself. That will put the Cat amongst the pigeons.

          Thanks but am I A or B?

          Comment


          • #6
            Are you Cat or Pigeon
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


            • #7
              Originally posted by daves59 View Post
              Thanks for reply

              So as soon as one or other leaseholder rejects offer, the process ends and freeholder has complied with the act, but freeholder cannot change terms in the offer for 12 months if selling on?
              I think that the offer needs to remain open for the two months. I would have to read the legislation to be sure. I have read however that if the offer is accepted but then leaseholder support falls below the 50%+ requirement, the LL is free to sell on the same terms.

              As a matter of interest, do you also know that the LL only needs to send his notification to just one of the two leaseholders?

              If a LL fails to follow the procedure then i) the LL can be prosecuted (but apparently it never happens) ii) the requisite number of Leaseholders then have an opportunity to acquire the freehold.

              One other point that is not always appreciated. The required number of leaseholders nominate a company/person as part of the process. Both leaseholders could accept the offer and nominate one of the leaseholders to become the new LL.
              I accept no legal responsibility for comments/advice I make on this forum. Please check with a solicitor before acting on statements made in a public forum.

              Comment


              • #8
                Originally posted by leaseholdanswers View Post
                Are you Cat or Pigeon
                I guess I am a pigeon but the cat has been a very naughty boy, so no sympathy there I'm afraid

                Comment


                • #9
                  Originally posted by siva View Post
                  I think that the offer needs to remain open for the two months. I would have to read the legislation to be sure. I have read however that if the offer is accepted but then leaseholder support falls below the 50%+ requirement, the LL is free to sell on the same terms.

                  As a matter of interest, do you also know that the LL only needs to send his notification to just one of the two leaseholders?

                  If a LL fails to follow the procedure then i) the LL can be prosecuted (but apparently it never happens) ii) the requisite number of Leaseholders then have an opportunity to acquire the freehold.
                  I think most of the legislation is open to some interpretation when there are only two leaseholders.
                  If the two do not get on or cannot agree on anything, then becoming joint owners of the freehold would be pointless and disastrous and expensive.
                  In fact the other leaseholder will not be able to/or extremely unlikely to buy the freehold in any case.

                  Comment


                  • #10
                    While there is a two month period in the case of 2 leaseholders once one says no the process is frustrated. the prudent landlord however takes a risk if they then sell"early" as there is always the risk of a change of tack. LLs wishing to sell "early" need documented surrender of their LH's right to first refusal
                    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                    Comment


                    • #11
                      Originally posted by leaseholdanswers View Post
                      While there is a two month period in the case of 2 leaseholders once one says no the process is frustrated. the prudent landlord however takes a risk if they then sell"early" as there is always the risk of a change of tack. LLs wishing to sell "early" need documented surrender of their LH's right to first refusal
                      I agree it is probably sensible to wait the full two months before proceeding, unless both leaseholders reject offer in writing.
                      Guess the pigeon will have to wait it out

                      Comment

                      Latest Activity

                      Collapse

                      • How to report a summary offence
                        camera
                        Hello,

                        How do we report a summary offence?

                        E.g. if we are not given a copy of our insurance policy after a proper demand and elapsed duration...

                        E.g. if our landlord has locked the gas meter and prevented our access in an emergency..

                        I'm referring...
                        23-07-2017, 19:57 PM
                      • Reply to How to report a summary offence
                        MrSoffit
                        Yes, and if the LA won't act, forget civil injunction. I landed on a 1999 magistrate decision (sadly lost the link) which fined a landlord for failing to provide s21 info to a leaseholder- maybe be other cases- but the Court of Appeal went and spoiled the party in MORSHEAD MANSIONS LTD and MR DI MARCO...
                        24-07-2017, 15:34 PM
                      • Reply to How to report a summary offence
                        Wright76
                        Im not going to get into a debate about leaseholders. I have apologised as I had no idea that I ended up in that forum. It was an innocent mistake and I still have no idea how I did it!.

                        I will of course check before I reply in future...
                        24-07-2017, 15:28 PM
                      • Reply to How to report a summary offence
                        MrSoffit
                        To be fair, responding on a long leasehold forum to an OP enquiry that as a landlord you would not provide insurance details (a criminal offence in respect of leaseholder rights) needs to be called out as Andydd said. People lurk.

                        Yes, long leaseholders are 'tenants' and not owners (fee...
                        24-07-2017, 15:24 PM
                      • Reply to How to report a summary offence
                        Wright76
                        Then I apologise as iv obviously got lost in the navigation of the new site...
                        24-07-2017, 15:17 PM
                      • Reply to How to report a summary offence
                        andydd
                        For future info it's Long Leasehold forum. Issues here will be regarding leases and services charges etc, issues with tenants, short term let's and ast etc are dealt with in another section....
                        24-07-2017, 12:53 PM
                      • Reply to How to report a summary offence
                        andydd
                        I would of thought if no info is provided you could arrange your own (cheaper) insurance on the basis that you couldn't be sure if the building was insured, this isn't easy though, you could also refuse to pay the insurance element But this is also fraught with pitfalls as it's not a legitimate reason...
                        24-07-2017, 12:49 PM
                      • Reply to How to report a summary offence
                        leaseholder64
                        The prosecuting authority for failing to provide insurance information is the local housing authority, however I've never heard of any such prosecution: http://www.legislation.gov.uk/ukpga/1985/70/section/34

                        You could take it up with the appropriate local councillor.
                        24-07-2017, 12:18 PM
                      • How can I confirm if garages have been sold that once came with a flat?
                        pernes
                        Hi, I am trying to check what flats have sold their garages, to either other flats in the block who either didn't have one before or have purchased a second one or if someone outside the block now owns any.

                        The block has three more flats than garages. Is there a way I can check this out?...
                        22-07-2017, 21:07 PM
                      • Reply to How can I confirm if garages have been sold that once came with a flat?
                        leaseholder64
                        The valid basis for VAT would be that the garages were being let as commercial property. Most leaseholder law is about residential property. Commercial landlords have an option to opt into VAT.

                        Share of the freehold is not legally defined, but in practice it means you, as a leaseholder,...
                        24-07-2017, 11:44 AM
                      Working...
                      X