As part of this strategy, you must ensure that you have the correct group company structure to hold (1) the Freehold as well as (2) the Leaseholds.
Lenders don’t want the same entity to hold both interests (the Freehold and the Leaseholds), in fear that you may, in future, be able to alter the terms of the lease jeopardising their interest over the assets!
Therefore, you should have a group company structure in place, which also ensure you don’t have to pay Stamp Duty Land Tax (SDLT) twice -once on purchase and another after the Title Splitting phase. With the correct group company structure in place, you will be able to move properties in between the companies (known as intra-group company transfer).
