Freehold Acquisition

Residential and Commercial Freeholding

Freehold acquisition isn’t a broad term, it means the acquisition of a property from the freeholder. But it is a term applicable to different leasing scenarios. There are residential leaseholds and commercial property leaseholds. Both differ in terms of ownership and rights over the property. The law differs with both residential and commercial property legislations.

Leaseholder, Property Owner, Freeholder

In relation to commercial property leaseholds, the property is leased by the tenant or business owner, the landlord owns the property, but the land might be owned by the freeholder. The business owner may choose to buy the property; still the freeholder owns the land. In this case, there’s a possibility that the leaseholder or tenant may be in the position to buy both the property and freehold.

Who Benefits From The Leasehold

Long leaseholds may last up to 80 years. This gives the business owner or tenant, enough time to invest in the business. The property owner or landlord, benefits from the tenant’s investment in terms of up keep and refurbishment. Equally, if the business proves to be successful, the landlord will benefit from this because demand for the property will increase.

“Landowners Reap Benefits”

The freeholder will also benefit because the business may help the land increase in value. Read The Guardian’s article published in December 2017 where Richard Partington reported that, “Landowners reap benefits of soaring British land prices” after the largest annual rise on record in 2016, with a £803bn increase in UK net worth.

Exploring Possibilities

Buying the freehold of a commercial property is the ultimate land and property investment. If you are in the position to buy a freehold or land, please get in touch with us. We’re experts in providing legal advice and conveyancing services in commercial and residential property and land. SG

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