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We have received an 'Offer Notice' from our landlord as he is selling the freehold of the building. What exactly are we being offered?
We have received a 'Offer Notice' from our landlord, as part of the Landlord and Tenant Act 1987. The landlord is selling the freehold of the building of which there are five apartments. We have been offered first refusal of our apartment, but what exactly are we buying? Is it the lease of the apartment? Also, the offer will only stand if 50% of the tenants agree to buy their apartment and in effect we will be our own landlords, but will we be able to sell the apartment later on without any complication? Will the apartment be ours to sell?
Each of the six leasees will own the leasehold interest in your property which could last for 99 years, 999 years or whatever is stipulated in your lease. The landlord owns the freehold reversion i.e. at the end of the 99 years say the property theoretically reverts to him. In addition he owns the common parts (if any), claims any ground rents, raises service charges and is obliged to comply with the landlord's obligations in your lease. A landlord is required to offer the leasees the opportunity of buying the freehold from him before he can sell it to anyone else, and over 50% of leasees must agree to buy. If you decide to buy the freehold the easiest solution is to created a company to own the freehold in which each of the leasees shall hold a share. Your leasehold interest will continue unaffected by any acquisition of the freehold.
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