Invalid right to first refusal offer?

Invalid right to first refusal offer?

8:01 AM, 23rd July 2024, About 4 months ago 3

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Hi, My daughter’s freeholder and management company (since disengaged) have been a nightmare for many years. Not engaging with the tenants to complete repairs and maintenance. Starting section 20 procedure and letting it lapse. Ignoring communication.

She is in a block of 4 flats with a commercial property underneath. They started the appointment of a manager process which was ignored but prompted him to issue a section 5A offer notice for right to first refusal to buy the freehold. Three of the four residential flats were interested in pursuing this at the price offered.

However, the offer notice had a clause which said: ‘The landlord shall prior to completion grant a 999 year lease of ground floor and basement/commercial property, to such party, on such terms, and for such consideration, as the Landlord shall require. In which case the sale of the property shall be subject to that lease (in addition to the leases at paragraph 5 of this notice. (the 4 residential leases).’

The leaseholders didn’t feel that they should accept the offer without actually seeing the new lease and the lease of the commercial property. After asking to see these leases they were eventually provided a few days before the date to accept the offer ran out. They asked for an extension to consider the leases but the response for an extension was unfairly punitive and they had to let the offer lapse.

Shouldn’t the leases have been provided in the first place as part of the principal terms of the offer?

Do the leaseholders have any redress now. If the freeholder sells the freehold to someone else now can they do anything about it?

Thank you,

LL

 


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Southern Boyuk

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10:04 AM, 23rd July 2024, About 4 months ago

Best thing you can do is referred to a specialist solicitor as that will pay dividends.

Putting pressure on you to accept the deal and you must write back to them and say that they are offering punitive terms for discussion and times scales, it’s important you get this in writing and that you would like a three month extension 2 to be considered

Freda Blogs

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10:25 AM, 23rd July 2024, About 4 months ago

I suggest you find a solicitor who is a member of ALEP, the Association of Leasehold Enfranchisement Practitioners. They will have the relevant expertise to help you with this query.

Mervin SX

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19:57 PM, 23rd July 2024, About 4 months ago

I would say it's missed opportunity.

What has the lease got to do with the purchase of the freehold?

The clause said, the lease shall be provided before completion. So, the Section 5A should have been accepted and the purchase of the freehold progressed, with a view to reviewing the lease before the purchase completion.

As far as the freeholder is concerned, they may have a buyer who will now buy the Freehold.

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