Leasehold Reform, Housing and Urban Development Act 1993

28 Withdrawal from acquisition by participating tenants.E+W

(1)At any time before a binding contract is entered into in pursuance of the initial notice, the participating tenants may withdraw that notice by the giving of a notice to that effect under this section (“a notice of withdrawal”).

(2)A notice of withdrawal must be given—

(a)to the nominee purchaser;

(b)to the reversioner in respect of the specified premises; and

(c)to every other relevant landlord who is known or believed by the participating tenants to have given to the nominee purchaser a notice under paragraph 7(1) or (4) of Schedule 1;

and, if by virtue of paragraph (c) a notice of withdrawal falls to be given to any person falling within that paragraph, it shall state that he is a recipient of the notice.

(3)The nominee purchaser shall, on receiving a notice of withdrawal, give a copy of it to every relevant landlord who—

(a)has given to the nominee purchaser such a notice as is mentioned in subsection (2)(c); and

(b)is not stated in the notice of withdrawal to be a recipient of it.

(4)Where a notice of withdrawal is given by the participating tenants under subsection (1)—

(a)those persons, and

(b)(subject to subsection (5)) every other person who is not a participating tenant for the time being but has at any time been such a tenant,

shall be liable—

(i)to the reversioner, and

(ii)to every other relevant landlord,

for all relevant costs incurred by him in pursuance of the initial notice down to the time when the notice of withdrawal or a copy of it is given to him in accordance with subsection (2) or (3).

(5)A person falling within paragraph (b) of subsection (4) shall not be liable for any costs by virtue of that subsection if—

(a)the lease in respect of which he was a participating tenant has been assigned to another person; and

(b)that other person has become a participating tenant in accordance with section 14(4);

and in paragraph (a) above the reference to an assignment shall be construed in accordance with section 14(10).

(6)Where any liability for costs arises under subsection (4)—

(a)it shall be a joint and several liability of the persons concerned; and

(b)the nominee purchaser shall not be liable for any costs under section 33.

(7)In subsection (4) “relevant costs”, in relation to the reversioner or any other relevant landlord, means costs for which the nominee purchaser would (apart from subsection (6)) be liable to that person under section 33.