purchasing a share in a jointly owned property

[cousin_borat]

My brother owns the property with two other business partners. It's a red brick house in Ranelagh converted into offices. The other two parties want out free up money for other projects they have.

The property is converted into 6 office type rooms. I am considering taking over from the other two partners. Taking away the amount my brother has already paid in the mortgage and how much cash I have to put down we're talking a mortgage of at least 500,000. The rent from the offices space rent would be approx 4,500 per month after I convert part of the building into a studio for myself.

My question is what would be the most tax efficient manner for me to take over the share currently owned by remaining two. Considering I have my own ltd company, and would be operating out of the property also. My brother also owns his share under his company.

Will he have to pay stamp duty even though it is two others selling their share and he is keeping his?

What would be the best type of mortgage?

Any thoughts or feedback would be greatly appreciated!

 

[Brendan Burgess]

Re: Procuring house from previous stakeholders in office property in Dublin

I think you are complicating things unnecessarily. Forget mortgages, rental income etc for the moment and clarify the following:

1) Is the property owned by a company and the three partners own shares in the company?
or 2)
Is one third of the property owned by your brother's company and the other two thirds owned by the other people?

If it is 2), do the others own their share through a company?

Brendan

 

[mercman]

Surely, cousin borat, you should be purchsing the twos' share at the current maket. If your brother wanted out this would be done to him. Concerning the present tenants are they on long term leases or short term arrangements. Depending on your own personal circumstances, lenders, especially at the moment, are only keen to lend on tenanted properties with decent tenants.

 

[cousin_borat]

Thanks for the replies lads.

@ Brendan
Yes, currently the three partners own the property under the same company. The property is split 3 ways evenly

@mercman
I would be buying out the other two persons share. Brother wants to keep his share. There are existing tenants in the place and they would be staying on. Property would generate approx 4,500 per month rental income. Perhaps more for renting the rooms on a per day/hour basis but as said in current clients probably better to have long term tenants from lenders perspective.