We have a situation where a property business is being transferred from a partnership into a Limited company. Several mortgages exist. The Limited company is raising finance on these properties and has a mortgage in place to cover all the properties. This will replace 50 or so individual mortages from various lenders to the Partnership. If every mortgage is novated to the new Limited company, rollover relief applies. However, if not every indivudal mortgage is novated, and the Partnership still retains the mortgages, which are paid off by Limited, presumably there is a non-share consideration and rollover relief is limited?
Thanks in advance