First-Time buying to renovate and sell & tax

hazyjo

Won't you have to own it for two years before extending the lease? Or were you hoping to have an informal lease extension agreement with the freeholder? Think you'll find it's +90 years on a formal statutory route.

jayjay2k

hazyjo wrote: »

Won't you have to own it for two years before extending the lease? Or were you hoping to have an informal lease extension agreement with the freeholder? Think you'll find it's +90 years on a formal statutory route.

The current owner has signed all the forms (Section 42 if I am right) so that the new buyer can extend the lease as soon as they own the property

Gwendo40

csgohan4 wrote: »

Do you like HOmes under the hammer?

I'm sure it's purely coincidence that these posts from wannabe property development entrepreneurs always appear between 10-11a.m. on a week day.:D

kingstreet

You'll have stamp duty to pay.

Don't forget to factor that in.

Doozergirl

jayjay2k wrote: »

I don't believe in anything until I see proof. Do you believe in HOmes under the hammer?

No. And I renovate property *properly* for a living.

Tom99

[FONT=Verdana, sans-serif]Make sure your solicitor checks the validity of that Section 42 notice, that it is being served on the right person at the right address, that your contract commits them to serve the notice and that you have a proper assignment of the notice to you, otherwise you will not be able to use it.

[/FONT] [FONT=Verdana, sans-serif]Have you seen a formal RICS valuation of the lease extension premium you are likely to pay or is this £55,000 just a figure the vendor has plucked out of the air to put in the Section 42 notice?

Don't count on the lease extension going smoothly at the price you expect, it may do but it may not, see some of the tricks a freeholder can get up to:-

https://www.leaseholdknowledge.com/lease-extension[/FONT]

jayjay2k

Right, I spoke to HMRC and the bank yesterday. All the so called "experts" collecting badges on here, people that can renovate properties "properly" and the clowns that think they know it ALL might want to go back and learn a little more because their answers are all wrong.

Thank you to those who took the time to answer my question or asked me genuine questions.

jayjay2k

Doozergirl wrote: »

No. And I renovate property *properly* for a living.

Well done. And enjoy paying hefty taxes because of the wrong information the "experts" on here might give you :T

AdrianC

And, for the benefit of anybody in a similar situation in the future, will you be sharing the correct information HMRC have given you?

Tom99

AdrianC wrote: »

And, for the benefit of anybody in a similar situation in the future, will you be sharing the correct information HMRC have given you?

[FONT=Verdana, sans-serif]Yes I to am interested in what advice HMRC gave you. Whilst I did not say so above, I would have thought you were liable to income tax not CGT and I assume that is the advice you refer to.[/FONT]