Freehold to Leasehold

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    Freehold to Leasehold

    We're planning on purchasing a freehold block of 4 flats at auction which are currently on one title using a bridging loan initially. The lender wants an in-depth exit strategy which we hoped was going to be as simple as splitting the deeds into 4 leasehold units and obtaining a mortgage on each enabling us to pay back the original bridging loan however the lender has said this is not possible and there would need to be a change of name/owner involved meaning stamp duty would come in to play.
    Does anyone know a way around this?
    Would we be able to transfer them into a LTD company?
    Thanks ­čśŐ

    #2
    If there were to be four limited companies formed with you as sole owner of each then the leases could be issued to each of the companies at a price below stamp duty limit.

    Forming a limited company now costs less than £15 each.

    Then the companies could transfer each leasehold title to you at that same price before each company is liquidated.

    There will need to be a solicitor involved to draft a lease, but if only one lease is drafted and dealt with by the solicitor then there is no reason you could not copy the same lease for each of the other transfers to the other companies you own without using a solicitor if saving money is your aim.

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