Leasehold property purchase - spotting a defect in title and using it to negotiate savings

We were instructed to acquire a leasehold property for a client that was subject to an occupational lease.  When we reviewed the papers we noticed that the occupational lease had not been properly excluded from the Landlord and Tenant Act 1954 and therefore the occupational tenant could try and argue that it had the benefit of security of tenure.  The client did not have any intention of developing the property and was buying the property as an investment and was therefore not worried about this potential issue.  We however suggested that as it was a defect in the title that the client should consider asking for a price reduction.  The client therefore approached the Landlord about this defect and secured a £10,000 price reduction despite the fact they were happy to proceed with the potential defect in title.

The firm has always provided an extremely high level of service. They recognise the value of a client relationship by making themselves available and meeting any deadline – no matter how unreasonable! The standard of the work is always of the highest calibre.

Chambers 2014, a client's guide to the UK legal profession

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