Some pointers please on legal issues attached to selling a corner site

ircoha

Not looking for advice here, just some pointers please.

Suppose I live in a house with a 'corner site' which is suitable for development.

Suppose I do the paperwork to create a separate 'title deed' for the 'corner site' what sort of issues do I have?

Have I created a chargeable asset?

Should I be concerned about stamp duty.
Thanks.

Tom Young

No expert on this, suggest getting FPP - Full Planning Permission First, site alone will be entailed in the original title deed. Would need to convey new title deed with property on basis of grant of incumbent planning/development requirement. Check with Land Registry for Uses, or Covenants on the land which might restrict. Possible you'll find some fishing rights or whatever.

Surveyer/Architect would be able to advise on most of this. In general though corner sites tend to have been left that way for a reason, so take good care your not proposing building on some sort of drainage network or something that will cause endless headaches later on.

Tom Young

Stamp duty rates: http://www.revenue.ie/services/stamp_duty_rates.htm

templetonpeck

ircoha wrote:

Not looking for advice here, just some pointers please.

Suppose I live in a house with a 'corner site' which is suitable for development.

Suppose I do the paperwork to create a separate 'title deed' for the 'corner site' what sort of issues do I have?

Have I created a chargeable asset?

Should I be concerned about stamp duty.
Thanks.

I would deal with it like this:

THIS IS ON THE BASIS THAT YOU ALREADY OWN THE SITE.
A. I would suggest you instruct an architect/surveyor to draw up a map outlining the site upon which you want to build, including all garden space you want to allot to it.
B. At this stage you can sell it as is or instruct your architect to apply for planning permission and sell it with the benefit of this planning permission.
C. Your solicitor can draw up the necessary Contract, once a sale has been agreed with a third party.
D. The purchaser would then be responsible for stamp duty on the purchase deed. However, as this is only a site, whether you've got planning permission or not, this will be classified as Non Residential Land and the stamp duty breakdown is much more punitive. IE, any land over E150k is liable for stamp duty @ 9%.
E. Further, if you do it this way you are selling an asset, which means you are liable for CGT at 20% (I think that's the threshold now) on the sale price. You can stock up against it your legal costs and stuff to reduce it, but what most people do is build on the corner house, move into that and then sell their old house. It means you normally get a detatched house and no CGT coz the asset you've sold is your principal private residence.