Thursday, 8 November 2007

Working with the right people

I’m in the middle of quite a complicated deal. I’m buying a property very BMV and then selling it on and sharing the profit with the original owner. This is called a “deferred consideration”. I’m working with a solicitor and a mortgage company who really understand the technical process of buying below market value. Yet they’re decidedly nervous about the “deferred consideration” idea. We could go ahead, and then just make a private arrangement with the vendor. The problem with that would be that our friends in the Inland Revenue would then demand their pound of Capital Gains Tax. We’ve now actually reached a stale-mate position.
It just goes to show that you really have to work with people who understand what you’re doing.

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