Serving Section 5 Notices On Leaseholders
When you decide to sell the freehold of your block it will be necessary to serve section 5 notices on your leaseholders. The leaseholders must be given the opportunity to buy the freehold on exactly the same terms as your buyer.
The leaseholders must be given the right of first refusal which must be serve in the correct correct manner as failure to do so will mean that they will need to be served again.The lessees have two months from the receipt of the notices to decide whether or not that want to buy the freehold and must serve a counter-notice on the landlord or his agent to confirm their intentions.
Preparing The Paperwork
If the lessees decide to proceed you will have no choice but to deal with them. They will be buying at the same price as your buyer but they are allowed a longer timescale to prepare for completion. They have a further two months to nominate a buyer and then a further two months to prepare for completion.
It is a long winded process but in some sales there can be several flats involved and getting the paperwork organised can be time consuming. It is very important that you keep receipts from the post office as you must get a proof of postage from the post office clerk to avoid any problems later on. We can serve your section 5 notices for free please call us.