Our client, an entrepreneur operating a business in Scotland, faced a long-standing legal challenge regarding the residential property attached to their business which was vital for accommodating its customers.
The client had entered into a residential lease in respect of this property in the 1990s which included a purchase option intended to allow them to acquire the property at market value in January 2004.
The challenge
Although the client triggered the purchase option in 2003, the necessary follow-up steps were not completed - no price was agreed and the property title was never transferred. This left the client in a state of uncertainty for nearly two decades, unable to secure ownership of a property vital to their business model.
Our approach
When instructed in late 2023, the Real Estate Litigation team at MFMac acted by raising proceedings in the Court of Session.
Our aim was to compel the other party to honour the purchase option, agree a fair price and complete all documentation required to transfer clear, marketable title to our client.
The case was vigorously defended, with disputes over the timing of the claim (prescription), the correct valuation date for the property and counterclaims for unpaid rent and property dilapidations. However, through robust negotiation and the use of expert evidence, we achieved an out-of-court settlement before the scheduled court hearing.
The other party agreed to transfer the property to our client at a discounted present-day value and abandoned all claims for unpaid rent and dilapidations.
Delivering results
This result was crucial for our client, whose business relies on providing accommodation to its customers. By securing ownership of the property, we helped safeguard the future of their business and provided peace of mind after years of uncertainty.
