Some residential tenants of a building have the right to be offered the disposal of a superior interest in a building before their landlord sells it on the open market.
A landlord is prohibited from making such a disposal (and this includes entering into a contract to do so) unless it has first served formal offer notices on the "qualifying tenants" in the building. These are known as section 5 notices.
The right of first refusal applies to the sale here because the premises contain two or more flats held by "qualifying tenants" and the number of flats held by "qualifying tenants" exceeds 50% of the total number of flats contained in the premises. Qualifying tenant means, generally speaking, any tenant with a lease save for business tenants and assured shorthold tenancies etc.
There is a risk that the "requisite majority" of the qualifying tenants accept the offer. If so the landlord must withdraw terms from the third party buyer and sell to the purchaser nominated by the tenants instead.
If the offer contained in the section 5 notice is not accepted by the tenants, the landlord may proceed with the proposed disposal to you but only on the same terms as those set out in the offer notices.
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