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  • Written by: RSL LAW
  • Published on: February 2, 2025

Property Developer Secures Prime Commercial-to- Residential Investment Gem!

A picture of St James's SquareRSL LAW DID IT AGAIN!

Property Developer Secures Prime Commercial-to- Residential Investment Gem!

A back-to-back purchase refers to a property transaction in which the same property is sold twice in quick succession. We have just completed a purchase of an investment property (an old night club) for our client, a property developer (Property Developer), who bought the property from the seller(Seller), who simultaneously bought the freehold title from the original owner, the freeholder (Original Freeholder).

 

 

RSL LAW’s Legal Team provided expert legal representation for both, the Property Developer and the Seller. Two independent legal teams within RSL LAW were dedicated to each client, operating on an arm’s-length basis to maintain strict confidentiality and to act in the best interests of their respective clients. Our expert property lawyers demonstrated exceptional coordination and professionalism, ensuring seamless communication with all parties involved. This high level of organisation ensured that legal processes and completion timelines were meticulously aligned, overcoming the challenges inherent in back-to-back transactions.

Here is how RSL LAW did it

The Original Freeholder’s Sale of the Freehold Title to the Seller

  • The Original Freeholder owned the freehold title, representing outright ownership of the land and building with no time limit on ownership.
  • The Seller held a leasehold interest in the Property, granting him the right to occupy and use the Property for a defined term under a commercial lease agreement.
  • The Original Freeholder agreed to sell the freehold title to the Seller. This effectively merged his leasehold interest with the freehold title, giving him absolute ownership of the Property.

Sale of the Freehold Title to the Property Developer

  • On completion of the purchase of the freehold title from the Original Freeholder, our Seller sold the Property to the Property Developer. This constituted the second leg of the back-to-back purchase.
  • The timing of the acquisition by the Seller and onward sale to the Property Developer was designed to occur very closely together, on the same day. This approach allowed the Seller to use the funds paid by the Property Developer to pay the agreed purchase price to the Original Freeholder, keeping the uplift as a profit.
Key Features of Back-to-Back Transaction

RSL LAW’s expert legal team has once again demonstrated its proficiency in handling complex property transactions with speed and precision. The transactions, first from the Original Freeholder to our Seller, followed by our Seller to the Property Developer were meticulously coordinated to occur almost simultaneously.

This strategic approach allowed the Seller to buy the Property from the Original Freeholder without having any of this own purchase funds. This case clearly demonstrates RSL LAW’s ability to navigate complex property structures with precision, delivering seamless solutions that align with our client’s investment strategies. For expert legal guidance on commercial-to- residential developments, RSL LAW remains the trusted partner of choice.

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