Property Funding and Taxation advice

[hoover]

Hello, We are married with 3 young children. Our joint income is 58.5K. We have two main assets as follows: 1.We own a holiday home(A) valued approx 250K which currently has a mortgage of 70K and 2. We own a site(B) (which will eventually become the family home) which is valued at approx 80K. We have approx 30K cash savings also. The income from the holiday home is approx 9K per annum. We are currently living in an old farmhouse(C) with a likely option to purchase the house with its adjoining 3 acres (approx 300K). This will happen sometime in the near future.
We are presently looking at purchasing a separate site to build a house for selling. The reason that we explored this option was to help fund the purchase of the farmhouse. The site with the house built(D) will cost approx. 170K with a selling price of approx. 230K. This sounds like a good option providing that it is sold quick enough to ensure that we can fund the purchase(i.e. mortgage) of the farmhouse.
Future options for the Farmhouse land(C) would be to develop houses for letting or selling.

1. Please advise on how we will be affected tax wise (and how best to handle it in terms of saving tax).
2. Since the purchase of this land will be somewhat in the region of 300K, we are looking at how best to fund it.

 

[Newby]

1. Please advise on how we will be affected tax wise (and how best to handle it in terms of saving tax).
2. Since the purchase of this land will be somewhat in the region of 300K, we are looking at how best to fund it.

These are questions you should put to 1. Your tax advisor and 2. Your tax advisor and financial advisor.

You should seek professional independent advice.

 

[CCOVICH]

Can I clarify?

• You own a holiday home with a mortgage of 70k?
• You also own a site (worth 80k) that you intend to use to build your family home?
• You are likely to be offered a farmhouse and land for 300k, which you intend to buy?
• You are searching for a separate site to buy and then build a house to sell in order to finance the purchase of the farmhouse and land on which you intend to build more houses?

I would say that you run the risk of being over exposed to property.

 

[Lobby]

The planners will frown on a one off house being built as a "speculation". If you haven't got permission already, then any permission granted will more then likely come with an ocupancy clause and they're not as easy to ignore as they used to be.