Strategic Freehold Purchase of Multi-Unit Residential Property

Overview

BBS Law has successfully represented a private property investor in the acquisition of a substantial freehold residential property comprising 45 flats. This complex transaction showcased our expertise in property law, strategic deal structuring, and efficient execution under tight deadlines.

Key Details

• Property Type: Freehold residential building in Hertfordshire with 45 flats
• Client: Private property investor
• Purchase Price: £7.9 million
• Transaction Completion: October 2024

Challenges and Solutions

Tight Timeline

Our team successfully exchanged contracts within a compressed timeframe, demonstrating our ability to work efficiently without compromising on due diligence or client interests.

Tax Optimisation

Working alongside our client’s tax advisor we structured the deal to take advantage of multiple dwelling relief (MDR) on Stamp Duty Land Tax (SDLT), maximizing tax efficiency for our client. This strategy and speedy exchange of contracts was crucial as particularly crucial as it was implemented just before MDR relief was withdrawn at the end of May 2024.

Complex Financing Structure

The purchase was funded through an innovative approach:

1. The property was strategically divided with the grant of long leases over all 45 flats.
2. These individual flats were then financed through five different lenders.
3. Our team adeptly managed the legal complexities of representing both our primary client and some of the lenders involved.

Additional Development Opportunity

As part of the transaction, we also handled a related sale of land for further development, showcasing our ability to manage multi-faceted property deals.

Team

This successful transaction was led by Property Partners Safiyah Bhaiyat and Avi Barr, with valuable support from Claudia Rubiano, Kelly Ferguson, and Danielle Cohen. Their combined expertise and seamless collaboration were instrumental in navigating the complexities of this deal.

Outcome

Our client successfully acquired a significant property asset with optimised tax efficiency and a structure that facilitates future value creation. This case demonstrates our firm’s capability to handle large-scale, complex property transactions while providing strategic advice that aligns with our clients’ investment objectives.