Kate Mellor

Registered with Property118.com
Friday 27th November 2015

Latest Comments

Total Number of Property118 Comments: 413

Kate Mellor

5:31 AM, 20th June 2021, About a month ago

Does a new landlord inherit previous AST?

Reply to the comment left by aga smart at 19/06/2021 - 08:48
You need to serve both section 3 (notifying the tenant that the old landlord’s interest has been assigned) and section 48 (informing the tenant of their new landlord’s name and address in England or Wales where they may serve any notices).... Read More

Kate Mellor

2:04 AM, 19th May 2021, About 2 months ago

How do I create a lease without triggering CGT or SDLT?

Reply to the comment left by gerosean at 18/05/2021 - 20:09
There are lease value calculators online.... Read More

Kate Mellor

2:00 AM, 19th May 2021, About 2 months ago

How do I create a lease without triggering CGT or SDLT?

Reply to the comment left by gerosean at 18/05/2021 - 20:26
What about remortgaging with Paragon? They will (I believe), lend with the flat being freehold.

If you change the freehold ownership you will potentially have implications with the existing leases which show you as the freeholders. I’m not sure whether that would raise any issues or not, but I’d want to check. Is the transfer equal to a sale?

I would still think you can split your titles without paying CGT or SDLT, but as you have a lender you would almost certainly need to do it on completion of your remortgage. It’s still the same thing that we did, only with just one lease.

Think of it like this, you split the freehold and leasehold titles onto two separate title numbers. Both are in the same names. No transfer has taken place, but you have split the titles (step 1). You then have a freehold title with very little value. You then transfer the freehold title into a company name (step 2). Goal accomplished and no CGT or SDLT payable.

Your current lender may even allow you to do this now for a fee. They will certainly require security over the freehold as well. I imagine you’d need to arrange this through an intermediary who has access to more senior members of the lending team. Consumers don’t tend to have as much flexibility as business borrowers.

Effectively this is what you’re doing when you split the titles on completion, you’re just skipping a paperwork step. Neither our solicitor nor our accountant had any issues with it or suggested it would produce a tax liability, so if that’s what you’re being told then question it.... Read More

Kate Mellor

4:26 AM, 16th May 2021, About 3 months ago

How do I create a lease without triggering CGT or SDLT?

Reply to the comment left by Christopher Rogal at 15/05/2021 - 15:54
In that case you are doing exactly what we did, as we were simply wishing to remortgage.

Our then lender, Yorkshire Bank, was leaving the property business and was pulling our loan and there wasn’t at the time a viable alternative to remortgaging the whole development. Nowadays I’d go to Paragon and simply remortgage using a single loan.

So yes, just draft up all the leases showing your landlord as the company and the leaseholders as you and your partner and a transfer of the freehold.

Our solicitor at no time perceived that this wasn’t perfectly ordinary and there was never any thought of any CGT being due on the transfer.

The TR1 form showed the value of the transfer as being £1000 and that is the relevant information as far as CGT is concerned.

You’re overthinking it. If it worked the way you are suggesting your transaction would look like this.

1) Transfer full freehold site to company, pay CGT & SDLT & solicitors fees
2) Create leases and transfer individually back to yourselves, pay solicitors fees for four transactions plus CGT & SDLT on the transfers.

It doesn’t work that way, so stop worrying. It will also be a far simpler process for you because it sounds as though you don’t have lenders involved to complicate things. If you are planning on later selling individual flats it is definitely advisable to get this process done up front as you are thinking of doing.... Read More

Kate Mellor

14:57 PM, 15th May 2021, About 3 months ago

How do I create a lease without triggering CGT or SDLT?

We created the company first and then wrote the leases showing the landlord/freeholder as the company created for the purpose .

As you are selling your first lease will be in your purchasers name and assuming your solicitor advises it’s okay you can do first registration on completion of the sale, unless they advise you to create and register each lease in your own name first and then sell.

Our transfer of the freehold wasn’t registered until all the leases were created and transferred and the value was removed from the freehold. In fact our solicitor actually neglected to register the freehold transfer until over 12 months later when we noticed that the land registry records hadn’t been updated. You do have to check these things. This is actually the second time in about 5 years something like that has happened to us.... Read More