Simultaneous acquisition and disposal (flip) of residential development site in Surbiton, Surrey.
Ambitious and new to market developer, Brix Developments, instructed us to negotiate a six-month option agreement for the purchase of a residential property and land in Surbiton, subject to obtaining planning permission.
Our objective was to ensure the acquisition of the site, whilst minimising any tax liability. The planning process can be unpredictable, so we built in an automatic extension to the option agreement should planning permission be pending, which maximised our client’s chances of exercising the option.
On successfully obtaining planning, we simultaneously exchanged contracts for the acquisition and disposal of the site, to two separate purchasers.
Our innovative structure ensured our client was able to sell the sites quickly to maximise profit, whilst benefitting from SDLT sub-sale relief. No stamp duty was payable on the transaction - a significant saving the client.