Sale of the freehold to a non-resident
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
If your freeholder wants to sell the freehold, s/he normally has to give you the opportunity to buy it before offering it to anyone else. This is called the 'right of first refusal'.
The Leasehold Advisory Service may be able to help if you need help to use your right of first refusal. You may also be able to get help from a Shelter advice centre or Citizens Advice in your area. Use the Advice Services Directory to find one.
How is the price agreed?
Buying the freehold is only an option if you can afford it. The freeholder has to tell you the price s/he is prepared to accept and any other conditions of the sale. If you think the price is too high, you cannot force her/him to reduce it and s/he can sell the freehold to someone else within 12 months. However, it can't be sold to anyone else for a better price (or with better conditions) than you were offered. If s/he wants to do this, s/he has to offer it to you first on the same terms.
What can I do if the sale is already underway?
It is usually a criminal offence to sell the freehold to someone else without giving you the chance to buy it first. If this happens, you have to act quickly if you want to take action. Get advice immediately to find out whether you can:
- stop the sale and enforce your 'right of first refusal'
- buy the freehold from the new freeholder (you have to do this within four months of finding out that it has been sold).
If the sale goes ahead, you will have a new freeholder. Your lease will continue as before unless you agree to change it.
What are the benefits of buying the freehold?
Being a freeholder is more secure than being a leaseholder. Buying the freehold may make it easier to sell your home. This is because:
- freeholders have more control over the management of their homes
- most freeholders don't have to pay ground rent
- freeholders can normally only be evicted if they don't pay the mortgage or other secured loans.
