Free lease extension – Is there a tax liability for this?
4 years ago | 5 comments
Questions with an inherited property?
10:50 AM, 20th September 2022, 4 years ago
23
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Hi, I have inherited a property worth £900k with no mortgage. I am converting the house into two flats, I have planning permission and I plan to rent out both flats after the work.
I plan to get a development loan and after the work, I plan to get two individual buy to let mortgages.
I hear I need to make two leases for both flats.
My problem is as a freeholder I can’t have the freehold and leases in my name.
If I have one flat in my personal name and the other in a limited company, I think I will then be faced with stamp duty … if I sell to the limited company, and also stamp duty.
How do I solve this problem?
I only want to rent out the flats… can anybody help me to solve this please.
Oscar
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Member Since September 2022 - Comments: 10
1:19 PM, 28th September 2022, About 4 years ago
Reply to the comment left by Jonathan Cocks at 27/09/2022 – 23:33
Hi Jonathan,
Because I inherited this old victorian house in London, the potential is massive..my father paid £12000 for the house in 1972…it is now valued at close to a million.
I have no experience in developing old houses, so that’s why I’m asking people to help me to understand what way to go with this.
After the work, the property might be worth 1.7 million, but with the way things are going, we just don’t know.
The house is going to have a full sideretun extension, and 3 bedrooms downstairs..upstairs two bedrooms in a l shaped loft, with a bathroom .
I have a beautiful design by my architect, but as I said I only plan to rent both flats.
I’m sure the work in London will cost more than 500k, if I can get the money to redeveloped the property then that’s my plan…it should rent for more than 50k for both flats…thanks for your help.
I
I
Member Since July 2013 - Comments: 71
6:58 PM, 5th October 2022, About 4 years ago
Make sure that you have an A and a B team to do the building and renovation lined up. For Peace of mind and less fear of being done over a barrel.
Member Since September 2022 - Comments: 10
7:28 PM, 5th October 2022, About 4 years ago
Reply to the comment left by GP at 05/10/2022 – 18:58
Hi, please explain your comments in more detail thanks.