Freehold Purchase Law – Collective enfranchisement
What is Freehold Purchase Law?
Freehold purchase law is the legislation that governs the purchase of freehold property. This can be useful if you’re a tenant who wants to buy your property’s freehold or if you’re a landlord who wants to sell the freehold of your property.
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How can Hillary Cooper Law help with Freehold Purchase Law?
Our team of legal experts can advise you on all aspects of freehold purchase law, from negotiating the sale to completing the purchase. We can also help if you’re a landlord who wants to sell the freehold of your property, but your tenants are refusing to buy it.
FAQ
Frequently Asked Question
The main difference between the two lies in the details. As joint tenants, both partners are entitled to the whole property equally. In contrast, tenants in common are entitled to specific shares based on percentages agreed.
Insurance is just another protective measure that it is advised to explore. It is advised to organise your building insurance before the exchange of contracts.
Building insurance should be present on the day that the exchange of contracts as it is where one becomes legally committed to the purchase of a property. The building insurance also works to protect your rights and liabilities concerning your property,
The short answer to this is yes!
You will need to ensure that you notify HMRC of the potential extra income you make. If you fail to do so, you may risk accusations of deliberately avoiding tax, therefore resulting in any missing tax being reclaimed in addition to fines up to the total value of any unpaid tax!
This includes choosing to rent out only a room on your property. Despite this not being a whole house or flat, you will need to declare any extra income via a “rent a room scheme”. This scheme provides that you must pay tax if your earnings are any higher than the threshold per annum (£7,500).
This area is recognised as a complex area, and it is strongly advised to seek guidance from a qualified solicitor.
You are taxed on your foreign properties in the same way you would be taxed on any UK property. If you are a resident in the UK receiving any income from renting your property abroad, all profits are subject to UK income tax laws.
There is certain relief available for those who are taxed in more than one country. In order to prove you are eligible for tax relief, a completed form from the tax authority must be provided to HMRC.