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chatham-chamber
chatham-chamber, Advocate
Category: Law
Satisfied Customers: 11825
Experience:  LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
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We are have made an offer on a property which has one

Customer Question

we are have made an offer on a property which has one official annexe, and a couple of "guest accommodation" flats that could be converted into rentable spaces, and a barn which we would want to convert into a therapy centre to run my business from. We have had conversation with the LA who feel ok about the barn change of use. The problem we have at the moment is finance, we are finding it hard to find a lender who will be willing to lend on the residential/ commercial split. We are thinking of buying as a residential property (as it is at moment) and then later maybe 6 months after purchase split the title and sell the barn, probably to my business, which is a LTD company. Then remortgaging both one as residential, one as commercial. What do I need to consider? Ie Stamp duty? And other concerns.
Submitted: 1 year ago.
Category: Law
Expert:  chatham-chamber replied 1 year ago.

Hi,

Will you be purchasing the property using finance?

Customer: replied 1 year ago.
we have a LTV of around 55%
Expert:  chatham-chamber replied 1 year ago.

Hi,

Sorry for the delayed response.

If you transfer the property in 6 months time, you will have to pay further stamp duty for the transfer to the limited company. You may also need to consider whether the company can obtain funding as not all lenders may wish to lend to the company unless it is an SPV.

I hope this answers your question. If so, kindly rate the answer and provide feedback.

If you have any further questions, please do not hesitate to ask.

Kind regards,