Scoobydoobydoo
Registered User
- Messages
- 55
Hi All,
I have been approached by a friend (John) who has access to a site and is proposing to develop the site with new apartments. John has a number of standard standalone rentals so he is aware of the market conditions and everything that comes along with being a landlord.
He is looking for help to structure a plan and decide next steps. I have listed out what I can but hoping you can help fill in the gaps.
John and 3 others are involved in the venture. He will supply the land and the others will supply some finance.
Structure: partnership, ltd, other?
Effectively 4 investors, is a ltd company the most feasible option?
Is a different structure required if they plan to rent Vs sell upon completion?
Should they register for VAT?
Tax advice required to determine best structure.
Legal advice to structure rules of engagement and exit.
Land: currently owned by John's parents who are happy to gift the site to him at market value (no PP).
What is the easiest way to regularise this issue?
What is the most cost effective way to regularise this issue?
Is it possible to leave the land in John's parents name and set up a leasehold agreement?
Stamp duty if transferred to a ltd company?
Potential conveyance
Tax advice regarding CAT\CGT
Legal advice for leasehold agreement
Construction: Once land is sorted apply for PP.
If relevant, can PP be applied for under a leasehold agreement?
Engage building contractor
Engage engineer/architect
Keeping an eye on long term/exit strategy, is there anything above that could impinge on the following:
1. Keep them all as Rentals: They are the landlord and everything that comes along with it.
2. If they exit and sell all apartments to one vendors. Transfer land. Is there anything else required?
3. If they sell a % of the apartments and keep the remaining for rental. Am I correct in thinking this is when an OMC needs to be set up and the land transferred to the OMC?
Alot there and it sounds like a slow burn, any guidance to get him on his way would be great!
I have been approached by a friend (John) who has access to a site and is proposing to develop the site with new apartments. John has a number of standard standalone rentals so he is aware of the market conditions and everything that comes along with being a landlord.
He is looking for help to structure a plan and decide next steps. I have listed out what I can but hoping you can help fill in the gaps.
John and 3 others are involved in the venture. He will supply the land and the others will supply some finance.
Structure: partnership, ltd, other?
Effectively 4 investors, is a ltd company the most feasible option?
Is a different structure required if they plan to rent Vs sell upon completion?
Should they register for VAT?
Tax advice required to determine best structure.
Legal advice to structure rules of engagement and exit.
Land: currently owned by John's parents who are happy to gift the site to him at market value (no PP).
What is the easiest way to regularise this issue?
What is the most cost effective way to regularise this issue?
Is it possible to leave the land in John's parents name and set up a leasehold agreement?
Stamp duty if transferred to a ltd company?
Potential conveyance
Tax advice regarding CAT\CGT
Legal advice for leasehold agreement
Construction: Once land is sorted apply for PP.
If relevant, can PP be applied for under a leasehold agreement?
Engage building contractor
Engage engineer/architect
Keeping an eye on long term/exit strategy, is there anything above that could impinge on the following:
1. Keep them all as Rentals: They are the landlord and everything that comes along with it.
2. If they exit and sell all apartments to one vendors. Transfer land. Is there anything else required?
3. If they sell a % of the apartments and keep the remaining for rental. Am I correct in thinking this is when an OMC needs to be set up and the land transferred to the OMC?
Alot there and it sounds like a slow burn, any guidance to get him on his way would be great!