Capital Gains Tax

The owner of this property in Dover had owned it  for 10 years and originally lived in it as a family home for a number of years. The owner then moved out of the property and rented it out for a short time

The tenants moved out of the property causing some damage. The owner then decided to carry out a comprehensive redevelopment of the property. The property had been empty for over five years and works had ground to halt.
The Empty Property Officer met with the owner to discuss his options, including:

  • Complete the renovation of the property
  • Rent or Sell the property on completion of the work or
  • Sell the property in its current condition.

The owner was concerned about his Capital Gains Tax (CGT) liability, if he sold his property and did not have the finance or the will to complete the renovations. Therefore, he was content to leave it empty despite the property  costing him money ( Council Tax ) and the property not being insured.tax and vat 1

The owners Capital Gains Tax liability was not as bad as he first thought (Please see example below).

On the basis of the information provided, the owner contacted an accountant who confirmed he would have no CGT liability. The owner then marketed the property and sold it  to a local developer.

The developer completely refurbished the property within a few months and has now rented the property to a local family, provided much needed accommodation to the area.

Reduced Auctioneers Fees

This property was owned by an elderly lady who had moved out of the property a number of years ago to live with another family member. The property had been the subject to repeated vandalism and was deteriorating further.

The owner was not in a financial position to renovate the property and was not in the best of health, making re-development of the property impractical.

The owner after much negotiation decided to sell the property.

To facilitate this the Council arranged for the property to be cleared and the owners belongings put into storage. This would enable the property to be sold at auction.

The No Use Empty Scheme and the District Council’s work in partnership with Clive Emson auctioneer‘s. If the property has been identified as a long term empty and is sponsored by the Empty Property Officer, then the Auctioneer will offer to sell the property through auction at reduced fees.

If you think your property is suitable for selling in Auction and is a long term empty property, then please contact your local Empty Property Officer, to assess whether you would be eligible for this discount.

The above property was placed into Auction and sold well above its guide price.

When the hammer falls at the auction, it establishes an agreement of a binding contract between buyers and seller. The buyer must pay 10% of the total sale price of the property before leaving the auction house and completion is usually within 28 days.

This method of selling property is particularly suitable for unmortgeable properties or properties in very poor condition.

The developer carried out a comprehensive programme of works, to bring the property back to its former glory. The property has recently been re-sold and is a home to a local family.

If you want to know where your local auctions are, go to http://www.futureauctions.co.uk

 

sell or renovate 4 sell or renovate 3 sell or renovate 2 sell or renovate 1

Property Guardians

Occupation of disused buildings such as schools or warehouses

boarded_upKent County Council has used “Property Guardians’” for a number of their properties, including this day centre. Camelot Property Gaurdian’s installed a shower, smoke alarms, fire blankets and notices and designating the rooms.

This enabled the Property Guardians to move in, and as result of their occupation the site and property remains in  good condition and has not suffered any vandalism.

The intention is to sell the property and although there has been some interest, the size of the building and the planning restrictions has resulted in the property being on the market for longer than anticipated.

tudorThe overall cost to Kent County Council is significantly less than traditional Security Firms and the property does not have the usual negative aspects usually associated with empty properties such a boarding to all windows and doors.

The lease arrangement ensures that we can obtain vacant possession in a very short time scale to facilitate the sale of the property.

Property Guardian’s have been used on these other properties around Kent.

The Betty Barber Centre was empty for a period of time and occupied by Property Guardian’s until sold in auction.