Landlords need to be aware of the provisions of the LTA 1987 as there are serious repercussions if it is not complied with.

Then if it wishes to dispose of its interest (at least two years) in the future, it would be able to transfer the freehold to the associated company (an exempt disposal) and then sell the shares in that company to the purchaser.

Whether you are renting or letting a property, you should make sure you understand and comply with these laws to avoid any problems or disputes. The informations were laid and the summonses were issued exactly 6 months after the date of completion. Landlords and developers need to consider The Landlord and Tenant Act 1987 (LTA 1987) carefully when disposing of existing residential and mixed-use properties. Efficient, professional, and helpful in getting everything sorted with the least amount of fuss and ensuring we could start the building work on time.

Unhelpfully, the LTA 1987 does not define “building” and there have been several cases on this definition; although none of these cases considered a development site or partially built property. Similarly, tenants do not have to hold long leases to qualify for an offer notice; short term company tenants and Rent Act tenants also qualify. What had been overlooked was that the relevant disposal took place on the date the auction contract was made (s. This is important for landlords as breach of the LTA 1987 provisions runs the risk of criminal prosecution and penalties for the landlord, as well as the right to compensation for the Qualifying Tenants. As such, mixed use property owners may wish to take a proactive approach and seek advice during the early stages of a proposed transaction, or even when a development is being designed.

This Part also does not apply to any such premises at a time when the interest of the landlord in the premises is held by an exempt landlord or a resident landlord.