Right of First Refusal Notices
If you’re a landlord considering the sale of a property containing residential flats, you may be legally required to offer the sale to your tenants first. This obligation, known as the Right of First Refusal (ROFR), is governed by the Landlord and Tenant Act 1987 and applies to many residential buildings across England and Wales.
At Bromleys, our experienced Property Litigation Team can guide you through the ROFR process, ensuring full compliance with the law and helping you avoid costly disputes.
What is the Right of First Refusal?
The Right of First Refusal gives qualifying tenants the opportunity to purchase the freehold or other relevant interest in their building before it is sold to a third party. This legal requirement applies to buildings that:
- Contain two or more flats
- Have more than 50% residential use
- Are occupied by qualifying tenants (typically long leaseholders)
If these conditions are met, landlords must serve a Section 5 Notice to offer the interest to tenants before proceeding with any sale.
To find out about how we can help, call us on 0161 330 6821, fill in our online form or email bromleys@bromleys.co.uk and we’ll call you back.
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Common Mistakes Landlords Make
There are many mistakes which Landlords can make when responding to Right of First Refusal claims:
- Incorrect Notice Type – There are five types of Section 5 notices (5A–5E) depending on disposal method. Using the wrong one invalidates the process.
- Failure to Identify Qualifying Tenants – Notices must be served on at least 90% of qualifying tenants. Missing even one can lead to criminal liability.
- Incomplete or Ambiguous Notices – Omitting price, terms, or response deadlines can invalidate the notice.
- Not Allowing Statutory Timeframes – Tenants usually have at least two months to respond. Cutting this short breaches the requirements under the Act.
- Ignoring Non-Monetary Consideration Rules – If the disposal involves non-cash consideration, additional notice requirements apply
- Eligibility Criteria – Checking whether the Property is an excluded property and whether the Right of First Refusal applies.
Why is it important for landlords?
Failing to comply with ROFR obligations can result in criminal sanctions, including fines upto £5,000 and forced reversals of sales. By following the correct procedure, landlords benefit from:
- Legal Protection – Avoid breach of contract and litigation
- Market Clarity – Ensure all parties understand the sale process
- Negotiation Leverage – Tenants may waive their rights, allowing smoother third-party sales
How Bromleys can help
Our solicitors have extensive experience in handling ROFR matters and can assist with:
- Assessing whether your property qualifies
- Drafting and serving compliant Section 5 Notices
- Managing tenant responses and timelines
- Structuring the sale to minimise risk
We provide clear, practical advice backed by years of success in property litigation. Bromleys is regulated by the Solicitors Regulation Authority, and our team is known for its transparent communication and client-focused service.
What happens next?
If you’re planning to sell a qualifying property, it’s essential to act early. Our team will help you navigate the legal process and protect your interests.
Contact us
To find out about how we can help you call us on 0161 330 6821 or fill in our online form or email bromleys@bromleys.co.uk and we’ll call you back.
We are located in Ashton-under-Lyne, Greater Manchester but we can assist wherever you are based.