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Where Taxpayers and Advisers Meet

CGT on lease extension

venture53
Posts:14
Joined:Thu Jun 16, 2011 12:56 pm
CGT on lease extension

Postby venture53 » Sat Feb 19, 2022 6:06 pm

I owned a house as my main residence which was converted into three flats land put into my BTL business. The three flats were held under a single title initially. I decided to remortgage the flats and had to put each flat under a separate leasehold title and create a single freehold for the 3 leaseholds.

The leasehold is solely owned by me. The freehold is held jointly with my husband. I own 99% of the freehold and my husband owns 1%. No money changed hands when freehold/leasehold structure was created.

I am looking to remortgage again and the mortgage company wants a longer lease on the flats as the current lease is about 80 years only.

My question is if the freeholder ( I and my husband) decide to charge a premium for extending the lease, will there be a CGT and if yes, how is this calculated?

Thanks for any advice extended.

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