Section 5a of the Landlord and Tenant Act, 1987: advice, please?

[Mation]

My uncle lives in a block of flats - all leasehold - and has been served notice under Section 5a of the Landlord and Tenant Act, 1987. He didn't really understand what the letter meant (and nor did I), and is quite worried and confused about what he has to do.

The notice stated a 'disposal' price, and a date up to which the offer can be accepted.

Having looked it up, my understanding is now:

• the freeholder wants to sell the block
• they have to offer the leaseholders first refusal on buying the freehold
• the disposal price is for the freehold of the whole block, rather than for each individual flat
• if >= 51% of leaseholders want, collectively, to buy the freehold, they can
• If so, the disposal price to be paid will be divvied up by however many leaseholders want to become freeholders
• if less than a majority want to buy, the freehold can then be sold on the open market
• leaseholders then pay ground rent to whoever the freeholder is, whether the former leaseholders, or the open market buyer
• leaseholders who don't want to become a freeholder don't have to do/pay anything as part of the process
• this isn't a notice that means my uncle has to move home

Is that about right?

Any help much appreciated. He's in his 80s and really worrying about having to pack up and (find somewhere to) move. The deadlines in the notice were all for early next year (Jan and Feb), and I want to be able to reassure him that he's not being turfed out.

 

[purenarcotic]

Has he spoken to Shelter?

 

[purenarcotic]

But in answer to your last question, I don’t think he needs to panic at this stage at all.

 

[bimble]

Mation i think your understanding is basically right, it's a notice that the freehold is to be sold , the flats are not going to be sold its not an eviction notice at all and he shouldn't worry.
The law says that leaseholders have to get first dibs, thats usually called 'collective enfranchisement' and can be a good thing, in that you get to decide together on whats needed etc, but it requires a fair bit of work & meetings etc.
I am not sure if ground rent continues being due when that happens.
* I am not a lawyer etc *

 

[Mation]

Has he spoken to Shelter?

No, the notice only came today and that would probably be a bit beyond him now, anyway.

I'll give them a ring tomorrow, though. Thanks for the suggestion

 

[Puddy_Tat]

am i right in thinking that he's a leaseholder not a tenant?

Home - The Leasehold Advisory Service may be the best port of call, rather than shelter

specifically this bit

(i'm assuming also that he's in england - the 4 countries of the uk have subtly different housing law, and i think scotland has something completely different to leasehold.)

 

[Mation]

am i right in thinking that he's a leaseholder not a tenant?

Home - The Leasehold Advisory Service may be the best port of call, rather than shelter

specifically this bit

(i'm assuming also that he's in england - the 4 countries of the uk have subtly different housing law, and i think scotland has something completely different to leasehold.)

Yes, he is a leaseholder. Thank you, I'll have a read

e2a: Ah! That's the site I've looked at and got my above understanding from. But there's lots and lots of brain crushing info on there too (good site and detail; it's just that my brain can't manage it all).

I'll take another look in the morning!

 

[Puddy_Tat]

But there's lots and lots of brain crushing info on there too

They do offer a (by appointment) phone and e-mail advice service

 

[Mation]

They do offer a (by appointment) phone and e-mail advice service

That sounds a bit more manageable. Thank you!

 

[bimble]

Yeah they are helpful.
Leasehold law is absolutely mad medieval stuff, but things like this (that freeholder has to notify and leaseholders get first refusal) are little steps forward.