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pipllman

Apartment / Student Let Blocks On Sale

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Top one's Farrah's old place:

http://www.ripongazette.co.uk/news/local/163-1-2m-plan-for-former-toffee-works-1-2708269

The Toffee Works property, located at the junction of Swan Road and Crescent Road, has been acquired for 965,000 by Braemar Group, the specialist provider of tax efficient residential property funds.

The building has planning permission to create 11 residential units. Conversion work will cost an estimated 1.2 million, and the resulting value will be more than 2.5 million.

For sale - £1,950,000

Listed in May 15.

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Could you buy the 72 flats individually, presumably avoiding stamp duty altogether?

If bought in one transaction at £3.7m you would pay £357,750 (9.67%)

Would that be worth it even assuming a gross rental yield of 9%?

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Could you buy the 72 flats individually, presumably avoiding stamp duty altogether?

If bought in one transaction at £3.7m you would pay £357,750 (9.67%)

Would that be worth it even assuming a gross rental yield of 9%?

No. They would be regarded as linked transactions and SDLT would be payable on the whole value

Also, the legals of splitting 1 title in 73 with associated leases would be a few bob too

At 9% gross yield it has a chance of finding a buyer (if it is indeed 9%)

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I thought so.

Would it be different if the flats were conversions (what about if they were bought at different times, from different owners?)? I wonder if there is crash and BTL exodus, might there be a bit of trend to buy flats and convert them back into houses? Maybe the cost of conversion would outweigh the possible stamp duty avoidance anyway.

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I thought so.

Would it be different if the flats were conversions (what about if they were bought at different times, from different owners?)? I wonder if there is crash and BTL exodus, might there be a bit of trend to buy flats and convert them back into houses? Maybe the cost of conversion would outweigh the possible stamp duty avoidance anyway.

The short answer to your questions in bold is no.

You can read about linked transctions / SDLT here

https://www.gov.uk/guidance/sdlt-linked-purchases-or-transfers

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