Law Commission consultation on commercial leasehold: overcoming barriers to transactions

We provisionally propose that:

1. a disposal by way of the grant of a lease by a landlord of a part of the premises that is:

(a) exclusively occupied or used, or

(b) intended to be exclusively occupied or used;

for non residential purposes should not trigger the Right of First Refusal; and

2. where one or more residential tenants of the premises share, or have a right to share, the use of parts of the premises (the “Shared Premises”), and the sharing of those Shared Premises is ancillary to their own residential use of part of the premises (that is, their flat), then a disposal of the whole or part of the Shared Premises shall in no circumstances satisfy the test in (1) above.

Do consultees agree?

Please explain why.