Freehold Contract: Expectation vs. Reality

When a leaseholder, there comes a point where you would like to buy the freehold of your house so that you can enjoy full ownership of your property. This article sheds light on a possible leasehold scandal by show how different the reality can be from the expectations that you have when desiring to own the freehold.

Expectation

For most leasehold agreements, the leaseholder is eligible to buy the freehold after a certain period of time lived in the house. Accordingly, you wait for that time to arrive and whilst waiting you tend to ask your neighbors if they had already bought their freehold so that you have everything figured out. You find out how much the land costs and start preparing for the financial installments that would be made for the freehold agreement. The time arrives, you sit down with your landlord and try to agree on a reasonable deal; however, in a worst case scenario, if things don’t work out you take the case to the court and eventually acquire the freehold.

Reality

When the time arrives for you to be eligible to buy the freehold, you try to contact your original landlord. The latter might actually be nowhere to be found or might expect to meet you in return for a fee. If you get to meet him/her, then you may be informed that he/she is no longer your landlord as he/she has sold the freehold to someone else. Also, if the landlord is still him, then the latter might refuse to sell freehold or demand an unreasonable amount. Finally, if you would want to take the case to the court, then you would have to pay for both parties.

The first step towards a successful freehold purchase starts all the way from the start. When making a leasehold agreement, make sure terms of land ownership are in your favor to avoid future leasehold scandal.