LTD company SDLT Charge on existing property for BTL Mortgage

[david1234]

Dear Sirs,

I have a query and appreciate some clear advise if you would be so kind.

My company deals in construction of new homes (residential) in england, the company purchased a parcel of land and built 50% of a new build property (£180k incl land) with its own funds, then applied for a development finance which was approved to complete the build (£170k incl interest), once the build was completed it then re-financed (remortgage) against the property 34% LTV with a business bridging package (£230k) to pay off the first lender (development finance) and release some equity back into the company. Now the company is looking to take out a 25 Yr BTL mortgage against the same property to clear its "Bridge loan" and allow the purchase of another project (development land) to commence with the remaining funds left over from the BTLM.

The property open market value is £695k
Proposed rental Annum £24k

As the company has always been the same owner of the above asset, would it be exempt from SDLT charges as the company does not currently own any other properties.

Thank you for any advice given.

David

[SDLT Geek]

SDLT will be due on the purchase of the next development site.

There should be no more SDLT due on the existing property the company owns; the remortgage transactions do not attract SDLT.

[david1234]

Thank you SDLT Geek for your confirmation response to our initial thoughts i will pass this onto the solicitors as i think they just added the charge to cover there backs so to speak.

Regards David