Pre Sale Contract
Pre-Sale Contract For Landlords Did you know that as long as you have not sold more than 50% of your block of flats you can conditionally exchange contracts on the freehold of the building with completion only to take place after that sale of your last flat has completed.
The advantages of doing this is that you will save a lot of money on legal fees and you will not have to give the leaseholders the "right of first refusal". Also known as section 5 notices the leaseholders must be given the opportunity to buy the freehold but only when you have sold more than 50% of the block.
Freehold Only Completes When The Last Flat Sells
This is a good way for builders to perhaps raise further funds against the building and also saves having to wait for two months whilst the section 5 notice period expires. When you sell the freehold via a pre sale the two month period for the notices is obviously not necessary. You can even exchange on the freehold of the block before a brick has even been laid. Completion will only take place when the last flat has been sold. We would be glad to help you with any queries that you may have in connection with a pre-sale.
Pre-Sale Contract Saves Time And Money
This arrangement is convenient as the freehold can complete within a month of the completion of the last flat. It is a popular choice with large developers who may be building in excess of 100 flats. It is a very clean and cost effective way of selling the freehold interest. It is also an excellent way of passing the management responsibilities over to another company so that you can concentrate on your next project