UKThe freeholder wants to sell. Do leaseholders have a right of first refusal?
Yes, qualifying leaseholders in England and Wales have a statutory right of first refusal when the freeholder intends to sell the freehold interest in a building containing flats.
What the Law Says
The right of first refusal for leaseholders is set out in the Leasehold Reform Act 1967. It applies when a freeholder plans to dispose of their interest in a building containing qualifying residential flats.
This right applies only to buildings containing two or more flats, where at least two-thirds of the flats are held by qualifying tenants (i.e., long leaseholders with leases originally granted for more than 21 years).
The freeholder must serve a formal 'offer notice' on all qualifying leaseholders before selling to a third party. The notice must include the terms of the proposed sale, including price and conditions.
Leaseholders then have two months to decide whether to accept the offer collectively — usually through a nominee purchaser — or to decline.
Statutory Text— Leasehold Reform Act 1967 s. 5 — c. 88
What to Do
Check if your building meets the criteria: at least two flats, and at least two-thirds are long leaseholds.
Ensure you receive a valid Section 5 offer notice from the freeholder — it must specify price, terms, and deadline.
Within two months, organise collectively (e.g., via a residents’ association or company) to accept or reject the offer.
If accepting, appoint a nominee purchaser and serve a counter-notice within the deadline.
Seek legal advice early — strict time limits and formalities apply.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.