The Landlord and Tenant Act 1987 (the Act) grants certain residential tenants (known as qualifying tenants) a right of first refusal when a landlord proposes to make a “relevant disposal”.

All Section 5 Notices must be prepared and served in accordance with the Landlord and Tenant Act 1987.

A landlord is prohibited from making such a disposal unless it complies with its obligations under the Act. Under Section 10A of the Act, a landlord will be guilty of a criminal offence if it makes a relevant disposal without complying with the requirements of section 5 of the Act.

Section 5 requires the landlord to serve formal notices on all ‘qualifying tenants’ offering them a right of first refusal before making any disposal. Qualifying tenants have a right to acquire the interest of the landlord before the landlord sells it to any other party. If the qualifying tenants do not exercise their right within a specified period, the landlord can dispose of the interest on the same terms (not more favourable terms) as were specified in the notice.

A Section 5B Notice of the Act provides leaseholders with their legal Right of First Refusal offer to purchase the freehold of their building. This particular notice is applicable and legally required when freeholders wish to dispose of their freehold interest via public auction.

Once a Section 5B Notice has been served on the qualifying tenants (leaseholders), it is prohibited by law to sell the freehold under different terms within a 12-month period. For example, if the leaseholders do not accept the Right of First Refusal offer, the freehold disposal must continue via an auction rather than a private sale.

This Section 5B Notice of the Act template shall be used when freeholders want to dispose of their freehold interest via public auction.

This Section 5B Notice Landlord and Tenant Act 1987 is in Microsoft Word format, written in plain English, easy to use and edit.