Landlord and Tenant Act 1987

4 Relevant disposals

(1) In this Part references to a relevant disposal affecting any premises to which this Part applies are references to the disposal by the landlord of any estate or interest (whether legal or equitable) in any such premises, including the disposal of any such estate or interest in any common parts of any such premises but excluding—

(a) the grant of any tenancy under which the demised premises consist of a single flat (whether with or without any appurtenant premises); and

(b) any of the disposals falling within subsection (2).

(2) The disposals referred to in subsection (1)(b) are—

(a) a disposal of—

(i) any interest of a beneficiary in settled land within the meaning of the [1925 c. 18.] Settled Land Act 1925,

(ii) any interest under a mortgage, or

(iii) any incorporeal hereditament;

(b) a disposal to a trustee in bankruptcy or to the liquidator of a company;

(c) a disposal in pursuance of an order made under section 24 or 24A of the [1973 c. 18.] Matrimonial Causes Act 1973 or section 2 of the [1975 c. 63.] Inheritance (Provision for Family and Dependants) Act 1975;

(d) a disposal in pursuance of a compulsory purchase order or in pursuance of an agreement entered into in circumstances where, but for the agreement, such an order would have been made or (as the case may be) carried into effect;

(e) a disposal by way of gift to a member of the landlord's family or to a charity;

(f) a disposal by one charity to another of an estate or interest in land which prior to the disposal is functional land of the first-mentioned charity and which is intended to be functional land of the other charity once the disposal is made;

(g) a disposal consisting of the transfer of an estate or interest held on trust for any person where the disposal is made in connection with the appointment of a new trustee or in connection with the discharge of any trustee;

(h) a disposal consisting of a transfer by two or more persons who are members of the same family either—

(i) to fewer of their number, or

(ii) to a different combination of members of the family (but one that includes at least one of the transferors);

(i) a disposal in pursuance of—

(i) any option or right of pre-emption binding on the landlord (whether granted before or after the commencement of this section), or

(ii) any other obligation binding on him and created before that commencement;

(j) a disposal consisting of the surrender of a tenancy in pursuance of any covenant, condition or agreement contained in it;

(k) a disposal to the Crown; and

(l) where the landlord is a body corporate, a disposal to an associated company.

(3) In this Part "disposal" means a disposal whether by the creation or the transfer of an estate or interest and—

(a) includes the surrender of a tenancy and the grant of an option or right of pre-emption, but

(b) excludes a disposal under the terms of a will or under the law relating to intestacy;

and references in this Part to the transferee in connection with a disposal shall be construed accordingly.

(4) In this section "appurtenant premises", in relation to any flat, means any yard, garden, outhouse or appurtenance (not being a common part of the building containing the flat) which belongs to, or is usually enjoyed with, the flat.

(5) A person is a member of another's family for the purposes of this section if—

(a) that person is the spouse of that other person, or the two of them live together as husband and wife, or

(b) that person is that other person's parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece.

(6) For the purposes of subsection (5)(b)—

(a) a relationship by marriage shall be treated as a relationship by blood.

(b) a relationship of the half-blood shall be treated as a relationship of the whole blood,

(c) the stepchild of a person shall be treated as his child, and

(d) an illegitimate child shall be treated as the legitimate child of his mother and reputed father.