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Right to Buy from a Landlord - Conveyancing Lawyers Liverpool & North West London
Am I eligible?
From May 2015, a change in the law allows a tenant to buy a rented property if they have lived in that property for at least three years.
A tenant’s right to buy does not mean that a landlord has to sell. To find out if the landlord is willing to sell the property, an application must be sent to the landlord under section 122 of the Housing Act 1988. The response will confirm whether you have the right to buy and if the landlord is prepared to sell the freehold or grant a lease.
Exemption from the right to buy
Even if the tenant has lived at the property for more than three years, they will not be able to exercise the right to buy if
- They are subject to bankruptcy proceedings
- There is a Court Order claiming possession of the property
- The landlord has applied to the Court to suspend the right to buy due to anti-social behaviour or if they believe the accommodation or its communal areas are being used for an unlawful purpose
Section 125 Notices
If the landlord agrees that a tenant has the right to buy, they must serve a notice of offer to the tenant (known as a Section 125 Notice) containing:
- A description of the property and any structural defects the landlord is aware of
- The sale price the landlord believes they are entitled to receive for the sale of the freehold or grant of the leasehold and the discount you may be entitled to
- The right to have the value of the property determined or re-determined by the district valuer
Within twelve weeks of receiving the Section 125 Notice, the tenant must confirm in writing whether they wish to proceed or withdraw the claim.
Next steps
During this twelve-week period, a survey of the property should be undertaken, mortgage or loan finance secured, and solicitors instructed. Solicitors can advise on whether the offer should be accepted and, if it is, assist with the procedures that will follow to secure the purchase.