Carbon complete residential portfolio restructure

Published by: Carbon FC

Our client held over 70 properties in various ownership structures that he was looking to incorporate into one Ltd company to mitigate against income tax given recent taxation changes. The value of the portfolio was more than £26mil.

The deal needed to be done simultaneously and required HMRC sign off to validate the tax efficiency. Without this consent and same day transfer the client was liable for stamp duty and capital gains tax.

Having researched the market, we identified a solution whereby the bank was happy to accept the transfer of all properties into the new entity on the agreed terms set out by HMRC.  The all in gross interest rate was below 3% on a 5-year interest only facility at over 50% LTV.
The logistics of getting all the properties valued and the legal process working in tandem required an incredible amount of organisation especially as there were 2 banks involved in the transaction.

The whole transaction took place in little over 3 months from initial meetings to the loans being drawn. With the first bank/client meeting taking place on 19th July and the loan drawing on 26th Oct.