bil8999 Posted July 20, 2011 Report Share Posted July 20, 2011 Hi Two guestions. How difficult is it to get a buy to let morgage into a ltd company. What are the main advantages/ disadvantage of putting the properties into a ltd company. Thanks in advance Link to comment Share on other sites More sharing options...
Carryon Regardless Posted July 20, 2011 Report Share Posted July 20, 2011 There's is more administration to gain the mortgage, and to deal with IR and Companies House annually. It's considered no advantage unless for a large portfolio. Any ltd liability advantages are lost due to personal assurance being required by the lending source. Link to comment Share on other sites More sharing options...
bil8999 Posted July 20, 2011 Author Report Share Posted July 20, 2011 There's is more administration to gain the mortgage, and to deal with IR and Companies House annually. It's considered no advantage unless for a large portfolio. Any ltd liability advantages are lost due to personal assurance being required by the lending source. How many properties required to be considered to be a large portfolio? Link to comment Share on other sites More sharing options...
Carryon Regardless Posted July 20, 2011 Report Share Posted July 20, 2011 Well I see from your other similar subject thread that you have a greater holding than I. I can't comment on the number that might make it worth while, or even the criteria to apply in making the decision. My earlier comments were made prior to reading your other input otherwise I wouldn't have. From my own experience I sold 1 property to my Ltd company and the company applied for a mortgage. Before the company could satisfy the Solicitors the company held a meeting, as Director I attended and raised the motion to do this. I voted in favour of the motion so it was carried. Acting as secretary I recorded the minutes and forwarded these to the solicitors. They also required to see minutes of the meeting where I had proposed myself to be Director, there were no other contenders and as I had no objection to myself being proposed this motion was carried by default. Had it not I guess it would have been required for it to go to the vote, in an election however the outcome can be uncertain. When I sold the property to the company I enjoyed a capital gains allowance for myself and wife that was still available at that time. Although my wife hadn't been owner in any part up until the day the company bought the property, she was happy to accept half the property as a gift from me, I'm nice like that. There is no capital transfer tax on gifts between spouses. The company may have bought at an attractive price to me, but if they're are so dumb why should I care that's their problem. Now every year the company is required to create accounts for the IR and Companies House, and enter a return at Companies House. No great problem but it is extra chew, mind I suppose that's what the secretary is employed for. I'm glad I don't have to do it. Link to comment Share on other sites More sharing options...
Richlist Posted July 20, 2011 Report Share Posted July 20, 2011 In addition you would have to sell the properties to the limited company, incur selling costs & CGT on disposal. The ltd company would then incur all the usual buying costs & SDLT on purchase. The limited company would then pay corporation tax on any profits ( around 21% I believe). Any balance left would belong to the limited company and if you were to withdraw any money for yourself then you would pay income tax at your marginal rate (an additional 20% or 40%) unless you paid yourself in dividends.....I could go on.......but I think you probably get the message that it ain't really worth the effort. Link to comment Share on other sites More sharing options...
YesAdam Posted July 26, 2011 Report Share Posted July 26, 2011 It is a little difficult to get a property in a BTL - if you are taking finance - you may need to provide personal liability or prove the company can more than afford it. You can register a company offshore in Belize for example - this removes a lot of the annoyances of owning property in a company in the UK - reduced or deferred tax liability, confidentiality and asset protection. You can call Bespoke Finance on 01274 792 876 - Specialise in Commercial Finance and BTL Finance. Link to comment Share on other sites More sharing options...
bil8999 Posted August 3, 2011 Author Report Share Posted August 3, 2011 It is a little difficult to get a property in a BTL - if you are taking finance - you may need to provide personal liability or prove the company can more than afford it. You can register a company offshore in Belize for example - this removes a lot of the annoyances of owning property in a company in the UK - reduced or deferred tax liability, confidentiality and asset protection. You can call Bespoke Finance on 01274 792 876 - Specialise in Commercial Finance and BTL Finance. Is the best way forward to remortgage our own property the do a directors loan to the ltd company? Link to comment Share on other sites More sharing options...
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