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Repeal Part I of the Landlord & Tenant Act 1987

Comment 13th August 2010

This Act gave tenants of blocks of flats (including converted houses containing two or more flats) a right of first refusal if their landlord wanted to sell his superior interest.. Apart from Rent Act protected tenants (and there are very few blocks  of flats occupied  more than 50%  of such tenants)  now have a right of collective enfranchisement and a 'Right to Manage'. They do not need a right of pre-emption and would not use such right as it will be cheaper to collectively enfranchise. If it was considered necessary to allow a right of first refusal to staturory tenants the Act could be amended to cover this  where there were more than 50% qualifying Tenants in the building while repealing PArt I in relation to long lessees

Why does this matter?

The Act causes major problems, particularly in relation to delays while notice periods expire, in selling and managing ground rent investments.  The costs of complying with the Act by having to serve often tens or hundreds of notices on tenants are often disproportionate to the value of the property , and the time which has to elapse before any dealing with the property can be made (four months in the case of an auction) means delay in a property owner realising the value of his asset.  The Act was badly drafted by the Law Commisssion and not scrutinised by Parliament, being nodded through before the 1987 election. It contains criminal sanctions if ignored or even if an honest mistake is made as to whether the Act applies or not.


 While it was enacted with good intentions the problems it sought to remedy have now been addressed by other legislation.  

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