The new bill for this right to purchase is out. Here is an extract from the Explanatory Memorandum setting out how the bidding process will now work. Can anyone understand it? It seems to go as follows:
1. The tenant on receiving the notice of termination can make a bid
2. If the landlord doesn't accept the bid, the property goes on the open market
3. If a third party bidder doesn't bid higher than the tenant, then (and this is the part I don't follow):
The new section 39E provides that after the initial 90 day period, the landlord can enter an enforceable contract for sale with any bidder on the open market, if the landlord has not already entered an enforceable contract for sale with the tenant or ‘relevant body’ during that period. However, if a higher bid cannot be obtained from a ‘third party bidder’ on the open market than might have been bid by the tenant / ‘relevant body’ and the landlord still wishes to sell, the landlord must revert to the ‘relevant bidder’ (i.e. the tenant / ‘relevant body’) and give a further notice of invitation to bid, which must specify the lower bid from the ‘third party bidder’ that the landlord is now willing to accept from the‘relevant bidder’. The ‘relevant bidder’ has 10 days to make a further bid on the dwelling and the landlord has 7 days to accept any further bid made. The landlord cannot enter an enforceable contract for sale with a ‘third party bidder’ during the period of 6 months from the date of receipt of a further bid from a ‘relevant bidder’ unless the ‘relevant bidder’ withdraws their further bid during that time.
Another point is that there are penalties if the landlord doesn't follow this to the letter ie. complete and serve all the forms correctly and within the time frames.
Also, what if you have, say, 4 tenants in a house is it one right to bid each or do they all have to make a joint bid? Very unlikely I know, but can they bid against each other under this right to buy?