Example 61: Purchase of next main residence, existing main residence held under a short residential lease

 

Example:

Pete and Les are tenants of a dwelling held under a 10 year residential lease. They use this as their main residence. Pete and Les decide to sub-let their existing main residence and to purchase a next main residence.

At the end of the day that is the effective date of the transaction, Pete and Les own only one dwelling as, because the lease of their previous main residence was for a term of less than 20 years, they are not deemed to be the owners of that dwelling. As a result, the ADS will not apply. 

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