What should I do if a housebuilder wants to take out an option to buy my property?
Tristan Ward Partner
Residential Property Partner Tristan Ward, answers a reader’s question regarding a housebuilder’s request to take out an option on a property in an article for the Sunday Times.
Discussing the potential that this situation presents, Tristan Ward highlights a number of factors that the homeowner should be aware of before granting the option.
He states:
‘The option gives the builder the right to require you to transfer the whole property to him at short notice, so you would need somewhere to live if the option is exercised.
Selling and buying will have costs, including stamp duty on the purchase and possibly mortgage repayment fees, agency and legal costs. In short, you may not make as much money as you think. You should also check whether the sale triggers a capital gain tax liability – a development site may not count as your residence for the purposes of principle private residence tax relief.’
Subscribers can access the rest of the article on the Sunday Times website.
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