Sale of Freehold Interest - any problems?

Sale of Freehold Interest – any problems?

12:50 PM, 13th August 2018, 8 years ago 1

Can I sell/transfer the Freehold interest from my SPV company to a management company I also own ?

My existing mixed use property is made up of a commercial unit and 3 flats – currently all on a single title.

My aim is to get each of the units on their own lease, remaining in my SPV.

As I understand it, the same entity can not be both the Freeholder and Leaseholder, thus me “selling/transferring” the freehold interest to another entity (management company) at the same time as creating the new leases.

Can this be done ?
Any guidance would be appreciated

Regards
Craig


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  • Member Since July 2013 - Comments: 2002 - Articles: 21

    10:18 AM, 20th August 2018, About 8 years ago

    Hi Craig
    The answer to your question is yes. However, get a solicitor to do it for you. Please do not try to do it yourself. Your solicitor or your accountant also needs to ensure that you don’t incur unnecessary SDLT and, if you want to take out a mortgage, that you consider whether there is a transaction at an undervalue.

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