leasehold purchase + whole buillding freehold - using limited liability partnership?

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    leasehold purchase + whole buillding freehold - using limited liability partnership?

    Am purchasing a leasehold 1st floor flat with freehold title to whole building (in total there are 2 flats with no common areas) - price £350k.

    Conveyancer has said that price will be recorded against leasehold title with peppercorn for freehold.

    Buy to let lenders will only proceed if freehold held in Ltd company. Lender will only have charge over leasehold title.

    Problem:

    Both flats have 76 year leases. So there is real value in freehold. We will extend lease of flat we are buying post completion. BUT. this will cause a part disposal of freehold title in the company and trigger a capital gain in company. Also no annual allowance available. Also, will be no annual allowance available when the ground floor extends their lease.

    Hopeful solution:

    Hold freehold title in limited liability partnership. Has the legal rights of separate entity, but is transparent for tax purposes - no capital gain when extending own leasehold title, and annual allowances available when the ground floor extends, as its as if the individual members are doing it, not the entity.

    Any one had any experience of this set up with lenders? My initial proposal has been met with a blank/repeat of requirement for holding in Ltd company without any explanation.

    #2
    Looks feasible to me. Have a read of this:
    http://www.duport.co.uk/guides/compa...y-benefits.php

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      #3
      A further thought:

      If property can be owned by an LLP can assets held by partners prior to setting up an LLP be transferred into an LLP and what would be the CGT/SDLT implications?

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