Flipping a buy to let property

[youngken]

I bought a buy to let property and paid 60% of deposit. Also, I signed a 3 years rental agreement with the developer for a said amount of rental return.
Can I flip my property before practical completion? If it can, how can I commit my rental agreement?
Anyone has such an experience?

 

[totallyproperty]

Hello and welcome to the forum

Is the property actually built yet of is it still being developed (I'm assuming it's a new build)?

 

[youngken]

It is being built.

 

[Nicholas Wallwork]

I thought I reply more fully via video for you below...

I should also add (I missed it on the video) that you could also possibly do a sub-contract with the incoming buyer with a delayed completion to tie in with the practical completion... again something to raise with your solicitor and they can advise in more detail.

Hope this helps!

 

[youngken]

Thanks a lot

 

[realdeals]

I presume if you were having difficulty selling on a rental agreement as part of the deal and it was held in a company it would be very simple. The company is seen as a stand alone legal entity so if you sold the company then it would not matter who owned the shares in the company. Is that a correct reading of the situation?

Holding property in a company may have other benefits such as offsetting interest charges against profits which after recent changes is not possible for own name investments?

 

[Nicholas Wallwork]

I presume if you were having difficulty selling on a rental agreement as part of the deal and it was held in a company it would be very simple. The company is seen as a stand alone legal entity so if you sold the company then it would not matter who owned the shares in the company. Is that a correct reading of the situation?

Holding property in a company may have other benefits such as offsetting interest charges against profits which after recent changes is not possible for own name investments?

Correct on both questions... obviously you can't sell the company if you have other properties held in it though (unless you sold them all) so it obviously depends on the individual circumstances...



Posted via the Property Forum mobile app

 

[nmb]

As and when investors are looking to bail out of their buy to let investments, holding them all in the same company would make it so much easier. No need to change ownership docs, etc as they would still be owed by the company but the company would be owned by someone else. Thinking about it, this must save a small fortune in legal fees - changing property ownership etc.

 

[youngken]

The question is the property is owned by myself, not company.