When a personal guarantee has to be given in order to give a lender the security it needs, the guarantor hopes that the guarantee will never be called in. However, when it is, the loss suffered by the guarantor will normally qualify as a loss for Capital...
Under the Landlord and Tenant Act 1987 (as amended by the Housing Act 1996), qualifying tenants have the right of first refusal when their landlord wishes to dispose of their interest in a premises. That is to say the landlord is prohibited from disposing of their interest in the premises without offering the interest to those tenants first. The premises must also qualify.
The most common disposal is the sale of the freehold but other disposals could include for example the grant of an overriding lease.
The process is started by the landlord serving a formal notice of offer upon the tenants. This notice has a contractual effect and triggers a strict statutory timetable. Therefore, we advise you seek professional advice before entering the process.
It is a criminal offence for a landlord not to comply with the statutory procedure under the Act which is subject to a £5000 penalty fine.
For further information please contact:
Andy Finkel (Harrow) on 020 8422 5678