1st August 2017

Developer’s Question: Sale of a freehold reversion

At a glance

I am in the process of selling off some leasehold plots. The apartment block is not yet build complete. I’ve got a buyer of the freehold reversion lined up. I don’t want to go through the s5 process. Is there any way I can get around this?

You don’t say if any plot contracts have been exchanged.  If less than 50% of the plot contracts have been exchanged, then you can enter into a contract to sell the freehold reversion to your buyer.  Once the contract for the sale of the freehold reversion has been exchanged, you can then exchange the remainder of your plot contracts.

If you have already exchanged contracts on more than 50% of the plots, you could see if any of the plot buyers are willing to agree their contracts being terminated , so that the number of plot contracts exchanged is less than 50%.  It is likely that plot buyers will want financial compensation from you to agree to do this.    You can then exchange the contract to purchase the freehold reversion and then continue with the plot contract exchanges.

For any assistance with your development needs, please contact Isabel Alderton-Sell by calling her on +44(0)1293 558520 or by emailing Isabel.

This document is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from taking any action as a result of the contents of this document.

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