Introduction

The purpose of this survey is to seek members’ views as to the practical impact of the compliance with Part 1 of the Landlord and Tenant Act 1987 (Tenant’s Rights of First Refusal) upon transactions. The results will assist the Law Reform Committee in making representations to the Law Commission as to whether and how they should recommend reform of the 1987 Act as part of their 14th Programme of Law Reform.

Members are asked in particular to consider transactions on which they have been involved where the 1987 Act was engaged and to reflect upon the impact (positive or negative) which the 1987 Act had upon the transaction. This could range from advising residential leaseholders on the exercise of their 1987 Act rights through to advising a landlord as to whether, for example, compliance with the Act is required on the letting of a commercial unit.

Members are encouraged to discuss with and include the experience of their transactional colleagues where they may have more day to day experience of the application of the Act.
Questions

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* 1. How frequently are you or your firm instructed to advise on the rights of residential tenants under Part 1 of the Landlord and Tenant Act 1987 (the Act) ?

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* 2. Have you ever had to advise on the following issues (tick all that apply)

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* 3. How frequently are you instructed by landlord clients to serve section 5 under Part 1 of the Act

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* 4. How frequently are you instructed to by residential tenants seeking to exercise the right of first refusal under Part 1 of the Act?

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* 5. If you are instructed by residential tenants to advise on the exercise of their rights under Part 1 of this Act, how often does this result in the tenants going on to acquire the relevant interest?

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* 6. If you act for landlords in connection with Part 1 of the Act how often in your experience do residential tenants seek to exercise their rights under Part 1 following service of section 5 notices?

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* 7. Do you have experience of residential tenants exercising their rights and then pulling out/changing their mind?

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* 8. Do you have experience of landlords needing to re-serve Part 5 notices because of changes to the underlying transaction terms?

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* 9. If you act for landlords, do you consider that where advice is required on Part 1 of the Act as part of a transaction (including where section 5 notices are served) the legal costs for that landlord of that transaction increase (on average)?

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* 10. If you answered yes to question 9, is the majority of the additional cost incurred as a result of:

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* 11. Do you consider that Part 1 of the Act confers a valuable benefit on tenants

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* 12. Do you consider that the current rights afforded to residential tenants under the Leasehold Reform Act 1967 and the Leasehold Reform Housing and Urban Development Act 1993 to extend their lease or purchase the freehold:

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* 13. Do you consider that the proposed reforms to lease extensions and collective enfranchisement will have an impact on the need for rights of first refusal

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* 14. Do you consider that commonhold is (or could be) a creditable alternative to the right of first refusal?

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* 15. Have you experienced or are you aware of the tenants rights under Part 1 of the Act delaying/complicating transactions?

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* 16. If yes, please provide examples of the sort of issues that have arisen

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* 17. Do you have experience of transactions having become abortive as a result of the need to comply with Part 1 of the Act:

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* 18. If yes, please provide examples of the sort of issues that have arisen and any consequences (for example, lost rent, increased empty rates liability, wasted costs).

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* 19. If you have experienced or are aware of tenants rights under Part 1 of the Act delaying transactions, by how much (on average)?

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* 20. On average, do you believe that transactions would proceed more quickly if landlords were not required to serve section 5 notices?

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* 21. In your view do the advantages conferred on tenants by Part 1 of the 1987 Act outweigh the disadvantages to landlords in complying with the Act?

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* 22. Would you support any of the following changes to Part 1 of the Act (tick all that apply):

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* 23. Any further comments?

0 of 23 answered
 

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