Landlord and Tenant Act 1987

Product Information

Secondly, the 1987 Act does not apply to a disposal made pursuant to a contract entered into before the qualifying criteria are met. It would be surprising if Parliament intended for residential flat owners to be given the opportunity to take leases of commercial units each time they were let, just because they were located in the same building. Whether the draftsmen of the Act intended these far-reaching effects we will never know but, bearing in mind the sanctions for non-compliance, it is often best to tread with caution.

This is the first time we worked with Peter Barry Surveyors to survey our plans for a loft room conversion. We hired their services for a level 2 RICS survey, and were provided with a very thorough, detailed and professional report which we found really useful. This will be a factual calculation, although it is important to disregard any common parts areas from all parts of the calculation.

You could implement a similar structure after the event if the building is held in a company and you also own another entity that has been in the same group as the first for at least 2 years. Needed to get a survey for a lease extension, Peter Barry was recommended to me by another surveyors. Very happy with the Level 3 Building Survey we requested from Peter Barry Greenwich - it was constructed promptly and was very helpful. I found the team very professional, the survey was booked promptly and the survey report was comprehensive. If this offer is not made, there are serious consequences, including, since 1996, criminal sanctions.

There are some limited exemptions which include the grant of a tenancy of a single flat; the grant of security for a loan and a disposal to an associated company (provided that it has been associated for at least two years). A wide range of disposals are caught, including, for example, the grant of an option, or the disposal of some airspace next to the building. As such, owners of mixed use buildings will need to consider the right of first refusal when granting leases of commercial units. Therefore, in situations where the residential parts are held under a head lease, a disposal of the freehold would not be caught by the 1987 Act. We needed a valuation for our lease extension application and the whole process was so smooth with Peter Barry.Practical straightforward updates to help you plan for managing your wealth, inheritance and assets. Excellent communication throughout the process and rapid response - survey and report completed within 10 days of booking. The Act only applies to immediate landlords and so if there is an intervening lease sitting above the residential elements of the building, you will be free to deal with the rest as you see fit. Although it may have been unlikely that the 1987 Act was passed to capture disposals of commercial premises, the case of Dartmouth Court Blackheath Ltd v Berisworth Ltd [2008] EWHC 350 established that Section 5 Notices have to be served when disposing of something over which tenants have rights. Peter Barry were very helpful through the whole survey process from booking through to sending us the results.

Indeed, for some time the prevailing view in practice was that the right did not apply to leases of commercial units. and references in this Part to the transferee in connection with a disposal shall be construed accordingly. The Qualifying Tenants must be offered the interest being disposed of on the same terms as the landlord proposes to sell it to a third party. Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world.Once the qualifying criteria are met it is very difficult to avoid the 1987 Act although it is possible to try and rely on one of the above exemptions e. If you require help or advice on mixed use premises or other related matters, please contact our expert real estate team. You also have to follow a certain procedure to renew or end your lease, which involves giving notices, negotiating terms, and going to court if needed. Whilst the Act contains some exceptions to the right of first refusal; the grant of a commercial lease, isn’t one of them. If the 1987 Act does apply, then the statutory procedure must be followed, which could potentially delay any proposed sale by several months, even if the qualifying tenants ultimately decide not to acquire the interest.

the superior landlord shall also be regarded as the landlord in relation to those premises for the purposes of this Part and, if the superior landlord is himself a tenant of those premises under a tenancy falling within paragraph (a) or (b) above, the person who is the landlord under that tenancy shall also be so regarded (and so on).We recently used the services of the team at PBS and I would highly recommend based on my experience. This decision has subsequently been overturned on appeal; the High Court, rather unexpectedly, construed the initial transfer as having been between trustees and therefore falling within one of the exemptions.