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  • Tax

    Help in correct structuring of a B2L company

    Hi there,

    As a newbie I may be placing this query in the wrong category- in which case my apologies.

    I am planning on creating a B2L UK company to purchase residential properties within the M25 - growing the portfolio out to 10-30 units in the first 2-3 years.

    The company will have myself and 3 other shareholders, and will need to borrow on a 40-60 split for each property the company buys (by way of a typical B2L mortgage).

    Is there anyone out there who can help me structure this correctly, or anyone you'd recommend, perhaps an accountancy firm? I feel we should have identified the lender before we move ahead too- do you agree?

    Thanks in advance,

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    Hi James,

    Welcome to the tribe!

    You do need professional tax advice to set this up correctly, and I am happy to recommend our tax partner, Rental Income Tax Advisors, or RITA for short, who are also the official tax partner of the Residential Landlords Association.

    All their contact details are on the banner at the top of this thread or you can visit their website by clicking on it.

    ​Good luck and hope that helps?

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    Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **5 reasons to get your FREE portfolio review NOW**

    Sounds excellent Vanessa - thank you for your swift response.

    Do you know if a UK company with several individual shareholders can have unlimited mortgages subject to all criteria being met?

    Do you know if we could find the lender that suits us best before we set up the company?

    As it's likely I will take more than I give from this forum - I have a tonne of experience in the UAE, with multiple properties across different sectors if anyone ever needs help there.

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    Hi James,

    Yes, I think there will be lenders who can work with that structure.  Forgive me for another recommendation, but our mortgage brokerage works very closely with RITA to assist PT members, so I suggest that you contact Howard and the team at Property Tribes Financial Services on 01206 654444.

    We have a ready made "Power Team" of trusted advisors and suppliers which you can leverage if you need to:

    Property Investor and Landlord "Power team" 

    This team will help you build your portfolio and set it up with the correct and compliant foundations to ensure low risk and profitability.

    With large parts of the property sector being unregulated, it's vital to work with trusted and proven partners, otherwise you could easily get stung!

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    Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **5 reasons to get your FREE portfolio review NOW**

    Excellent, thanks again Vanessa. Who do you suggest I contact first? Howard?


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    Hi James - Welcome to PT

    Sorry cannot help you on the structure - not my area - but V has pointed you in the right direction and others will

    Good to see someone buying volume especially within the M25

    You seem to have an experienced  handle on what the possible  global trends are

    Can I ask why buy now within  the M25 and not the UAE. ?

    Maybe you are still doing both ...

    Does this point to London on the move upwards again maybe in your eyes

    Cheers

    Jonathan



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    Jonathan Clarke. http://www.buytoletmk.com

    We have USD strength at the moment- sterling is on its knees, and no I'm not timing the UK property market particularly. London is logistically 'do able'. UAE market does its thing, delivers a tax free yield with big swings. I'm in a few markets to be honest not the UK however.

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    Yes, getting the money in place always comes first!  Give Howard a call and explain what you are trying to do and he will go through the kind of products that are out there that you may qualify for.

    However, when you want to raise a mortgage, you will have to go through a fact finding procedure where the lender does due diligence on you.  This will require you to supply Howard with a lot of detailed information, so be prepared for that. Smile

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    Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **5 reasons to get your FREE portfolio review NOW**

    Ha yes it makes perfect sense, thanks Vanessa.

    I am used to the KYC bits so no problems with the inquisition, it's a part of business really )) . Have you got an email for Howard, or do you want to make the intro?

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    Yes, his email is howard (at) propertytribesfinancialservices.com . Smile

    You may also find this thread useful:

    Top 10 Property Tribes resources for novice landlords and BTL investors 

    Turn into a property "sponge", soak it all up, ask questions, take intelligent action on a daily basis, become an expert on due diligence, listen to your instinct, keep your goals at the forefront of your mind ... and you won't go far wrong! Smile

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    Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **5 reasons to get your FREE portfolio review NOW**

    Just bear in mind the Currant Govt doesn't want BTL

    Politically  we are detested  and there is nothing to stop the Govt from changing Tax Policy for Company's going forward

    I personally wont touch expansion on BTL your ambition could be shot down in flames so give it a lot of thought and don't leverage up too much otherwise it may cost your company a lot of tax

    I believe the following needs to be considered

    Mr Hammond has already indicated that he is not happy with Companies being used to avoid tax ???

    I know we all want the best for our sector but I am unsure about the future

    as an asset  BTL is very good but its useless unless you have a net Profit worth having ie how much cash you have in your pocket for the effort and risk needed.

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    Learn Change and Adapt ?????