Leaseholder issues with freeholder?
3 years ago | 14 comments
Lease dilemma when securing a B2L mortgage?
12:06 AM, 5th July 2023, 3 years ago
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Hello, My company owns the freehold of a property which is divided into 2 self-contained flats, one of which is sold on a long lease and the other let on an AST.
We are looking to secure a B2L mortgage but the lender requires that the AST flat is held on a long lease.
That might seem easily done but a freeholder cannot grant a lease to itself and granting a lease to a third party (shareholder, director or other?) would raise the issue of CGT and SDLT.
Has anyone had a similar experience?
Thank you,
Stuart
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10:29 PM, 5th July 2023, About 3 years ago
Lease granted to a wholly owned subsidiary company, perhaps?
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9:07 AM, 7th July 2023, About 3 years ago
You need a tax accountant
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8:17 PM, 10th July 2023, About 3 years ago
1. Freeholder enters into contract with director/subsidiary to sell freehold for £10
2. Sale is subject to the grant of a 999 year lease back to the seller.
3. BTL becomes the leaseholder.
4. Freehold is in separate ownership
5. Should be tax neutral but take accountants advice