Buying a house? Think you know what you are paying for it? Of course you do.....or do you?
If you are buying a house that is held under a lease (instead of buying the freehold) you might be thinking that you can buy your freehold easily for a nominal sum.
However there is a growing trend of house builders selling the freehold to investment companies who then ask for big sums in return for selling the freehold. The developers are allowed to sell the freehold as rights of first refusal apply to flats but not houses.
We know of one case where a developer was willing to sell the freehold to the homeowner for less than £3,000 but once the freehold was transferred to the investment company they wanted over £30,000. That's ten times as much!
If you are in this situation we can help. Did you know there is a statutory process which will enable you to buy your freehold after 2 years? This process will also establish the price and the legal fees you need to pay meaning you will not be left having to negotiate with an investment company seeking to extract as high a sum as possible.
If you would like to talk to someone please contact a member of our Commercial Team at any of our offices.
