I Received a Section 5 Notice — What Are My Tenant Rights?

Landlord Protection I Received a Section 5 Notice — What Are My Tenant Rights?

I Received a Section 5 Notice — What Are My Tenant Rights?

A  landlord has many rights as a property owner. One of the rights is to make a disposal of his interest in a premise anytime they wish. However, these rights are controlled by the law. A landlord cannot put the property on the market without considering the tenants on the premises.

The landlord must give the tenants an opportunity to purchase the disposal of interest before presenting the interest to a third party, as dictated by the Landlord and Tenant Act 1987. This tenant consideration is part of the section 5 notices.

As a tenant, you should follow guidelines after receiving a section 5 notice.

DoNotPay helps you understand the Section 5 Notice in the Landlord and Tenant Act, eviction laws, and break your lease without any negative impact.

What Is a Section 5 Notice Landlord and Tenant Act?

A section 5 notice is an official document from the landlord to leaseholders notifying them of the landlord's intentions to sell the freehold. A section 5 notice gives you the opportunity to claim the property before it is open to the public.

It is the legal obligation of every landlord to serve the section 5 notice to the tenants and give them the right of first refusal. The right of first refusal is the right to be considered as a potential buyer until you reject it.

The section 5 notice is served with a deadline date, which you must consider to establish the date for acceptance. Your landlord must give you at least two months to respond before taking any step.

A valid acceptance notice should be served by at least 51% of the qualifying tenants. All the tenants serving the acceptance notice must nominate a purchaser, often the company that the qualifying tenants form, to take over the ownership of the premises.

Who Are Section 5 Qualifying Tenants?

A qualifying tenant is a long leaseholder with a landlord wishing to sell their interest. Assured tenants, business tenants, shorthold tenants, and other tenants who hold more than three units do not qualify for section 5 acceptance.

Should I Accept the Section 5 Notice?

Tenant rights give you the right to comply with the section 5 notice or reject the right of first refusal. Here are ways you can gauge whether the right of first refusal applies or not:

Is Your Landlord Qualified Under the Landlord and Tenant Act 1987?Most landlords are recognised as proper landlords under the Landlord and Tenant Act 1987 and comply with the right of first refusal procedure whenever they intend to make property disposal. Here are exceptions for landlords that do not qualify to offer section 5 notices:

Houses are managed by housing authorities, housing trusts, and other local authorities

The landlord must occupy part of the premises as their only residence for at least 12  months before declaring intended disposal

Does the Section 5 Act Apply to All the Premises?The premises must contain two or more residential flats held by Qualifying Tenants on long leases. Alternatively, if the premises are not 100% residential, the internal floor area of the residential part must be 50% or more of the internal floor area of the premises wholly. Shared floor areas are not calculated as part of residential or commercial floor areas.
Are There Enough Qualifying Tenants?There must be more than half of the qualifying tenants for you to accept the right of first refusal.
Is the Interests Disposal Relevant under the Landlord and Tenant Act?Property disposal can only be considered relevant if it is a disposal of a legal interest in a property that the right of first refusal is applicable.

The most common legal disposals include:

  • Grant or surrender of a lease
  • The sale of a freehold
  • A superior interest

There are types of disposals that are not relevant to the right of first refusals, such as disposal due to:

  • Transfers within families or trusts
  • Transfers due to bankruptcy or divorce
  • Transfer from a company to an associated company with a 2 plus years association

How to Respond to Section 5 Notice Landlord and Tenant Act With the Help of DoNotPay

Rejecting the right of the first refusal calls for termination of tenancy within the given time. You should respond to the section 5 notice with a tenant's notice to end the tenancy and initiate the termination process.

The termination process might be longer than expected, taking up your time. DoNotPay helps you save time by providing a tenant's notice to end tenancy letter template, which you can use to compose your notice letter.

If you want to break a lease but don't know where to start, DoNotPay has you covered in 4 easy steps:

1. Search for and open the Landlord Protection product on DoNotPay.

 

2. Select which issue applies to you.

 

3. Answer a simple set of questions so our chatbot can collect the necessary information to create your demand letter.

 

4. Choose whether you want DoNotPay to send the demand letter to your landlord or roommate on your behalf. If you already tried sending a demand letter and it didn't work, we can help you start the small claims court process.

 

Other resources you can get from DoNotPay, include:

Solve Your Issues With the Help Of DoNotPay

DoNotPay is a bottomless well of resources that helps you understand the Section 5 Notice in the Landlord and Tenant Act, among other landlord and tenant protection resources. Our services are fast, reliable, and legally savvy to help you make informed decisions.

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