Title Splitting – SASS, SPV?

Title Splitting – SASS, SPV?

15:18 PM, 7th August 2018, About 6 years ago 2

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What is the best way to structure this please ?
I am very close to purchasing (with cash) a mixed use property – large salon plus 3bed flat, 2bed flat, 1bed flat, 3 garages with a large garden – ALL ON A SINGLE TITLE. The properties all have their own street number Salon (6), 3Bed (8), 2bed (4), 1bed (4a).

The individual values of these properties is far greater than the price I have agreed to buy at.

My aim is to split titles into:
1 – Salon
2 – 3bed
3 – 2bed plus 1bed
4 – Garages and land
My plan is;
Sell the salon to my SSAS
Sell the Garages/Land to my SSAS (my company will rent them from the SSAS – possible future development)
Refinance (mortgage) and retain all of the flats and rent them out through my company (SPV)

My Questions
1 – Should I complete the original purchase in my own name or through my existing company (SPV) ?
2 – If I purchase in my own name how do I then get them into my company ?
2 – Where is best to have the Freehold ownership?
3 – How would you best structure the above processes?

Many thanks in advance,

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Graham Bowcock

10:27 AM, 8th August 2018, About 6 years ago

Dear Craig

It is so tempting to try and reply to your question. This is the sort of thing that would tax somebody doing an exam! It does, however, sound like an interesting proposition.

For reasons of PI, I shall comment generally rather than specifically; you may be best advised to get a local surveyor (not an estate agent) to go through your plans. There will be so many nuances to what you are suggesting, that a response to an online forum may not move you forward (and may possibly take you backwards).

Personally, I would not make any particular judgement without seeing the properties and viewing the Title plan. There may, for example, be issues of access and shared services to address (this is very common in the scenario you set out). Disposing of part (even to a body under your control) may impact on the value and scupper future plans to borrow.

It may be best, as you alluded to, to split the titles into freehold and leasehold; that way you can control access and other rights much more easily.

I don't see how anyone can advise you in this forum which vehicle you should use for purchase. If you're not borrowing, then clearly there are no mortgage implications, but if the intention is to make a profit you need to think about where that profit will be made and how it will be taxed. A good surveyor (possibly working with your financial adviser or acountant) will consider your exit strategy - what do you want to get out of it?

Transfer from yourself to a company is straightforward, with no mortgages, and something your solicitor can do quite quickly.

If you are looking to buy and then borrow at a later date at a higher value, be careful that the lenders will consider the price you are paying. You will need to demonstrate how you have added value if you put forward more than you have paid; simply splitting the title may not be enough. Again, one for you to get some god local advice on values before relying on going down this route.

This is merely a starting point and I hope it is useful, but also demonstrates the complexity of what you are doing.

Good luck


Craig M

10:42 AM, 10th August 2018, About 6 years ago

Hi Graham,
Many thanks for taking time out to reply.
Having spoken with a number of people, I may have been "over-egging" this a bit. In summary, I will now be buying the property in my name. Straight away I will set up a new company (management company). I will then wait 6 months (minimum period for lenders) and will title split, sell the Freehold to the new company and sell new leases to my existing SPV company. I will carry no CGT liability as the transactions will amount to the same, however, i will incur the extra SDLT and legal costs for the sales into new company and SPV company.

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