Section 5 Notices
Section 5 - sale of freehold via ‘right of first refusal’
Section 5 Notices must be served by any freeholder looking to sell their freehold to an unrelated third party.
This is often known as the ‘right of first refusal’. Leaseholders of the relevant building(s) must be notified of this intention and be given a chance to group together and make a rival bid either at auction or directly. If the freeholder fails to do this before selling the freehold, they could forfeit it to the group of leaseholders.
It is important to act very quickly if you receive a Section 5 Notice, as there are very tight timescales to consider.
Find a Practitioner
ALEP was set up in 2007 in response to concerns raised by owners of leasehold properties who wanted reassurance that the people they were dealing with were reputable. Freeholders also require this reassurance.
- Where you see the ALEP logo you can be sure of a consistently high level of service.
- They must also commit to high professional standards, integrity and quality customer service.
- You can be confident that any firm that is a member of ALEP will be experienced and competent.