Forum Replies Created
Hi Stricker – if you have a sandwich Lease/Option, why are you buying the property to onsell? I’d have thought you would be selling your Option-to-buy only. You never actually take title of the property. CGT would be paid on the profit you make from selling the option, and I think (but am not sure) that there is stamp duty on the option also (eg you secure IP purchase for 100K, sell option to TB for 30K, you pay SD on the 30K option, and tax on the 30K profit minus your option-fee costs). Your TB will be taking title (and their SD will be based on the purchase price of the IP – 100K).
I would be looking for a second (and maybe third!) legal opinion.
Hope this helps
ShaunWHi Walkernick – you may be able to use a deposit bond in this instance, keeping your own capital free. The deposit and the bond cost may also be covered by the mortgage, if you get a loan based on value rather than on the sale price (that is if you’ve bought at a price lower than value, and can cosmetically clean the place up prior to settlement) Thus the house will be purchased with entirely OPM. hope this provides food for thought
cheers
ShaunW
