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  • New Members

    Landlord-to-be, inheritance & Ltd company

    Hi all

    I’ve found myself in the very lucky position of soon to be inheriting a vacant mortgage free freehold house It’s been confirmed that IHT will be coming from elsewhere in the estate so no issues there.

    My plan is to use this as a catalyst in creating a BTL portfolio, therefore I’ve been doing some calculations and I believe that putting this property into a LTD company will mean I’ll have more rental income after tax to reinvest into the company (not too bothered about a personal income at this stage I just want to invest in my business) I’ve also spoken to a couple of mortgage advisors and I understood a BTL mortgage on a Ltd company may be slightly more expensive but looking at the long term I’m happy to pay the extra in interest if it means less income tax.

    With this in mind can anyone give me a  overview of how the mechanics of the ‘purchase’ would take place. Does there have to be cash in the Ltd companies accounts in order to buy the house at market rate?

    And secondly if if anyone has experience moving a house straight from probate into a Ltd company I would be keen to hear from you.

    I am currently looking for a tax advisor and have started engaging with my solicitor but wanted to put it out to experienced landlords such as yourself

    Thanks all!

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    Hello

    Lending under a LTD Company is slightly more, I have found, but certainly has its benefits. I would say some mortgage broker are MUCH better than others. Happy to point to mine, (Numbers guys, you can discuss direct FOC) Brokers can point you to the wrong deal because it fills their pocket.

    I can also point you to my TA. He is one of the best, doing it all his life and still young to be creative. You need to listen to the right people regarding all thing.Tax is tax consultants NOT accountants.

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    I'm in the same position, although it didn't come with a feeling of luck.

    Take time to understand your options, there are many. If you don't fully understand those options browse this forum and speak to professionals. Don't be surprised when you receive differing advice, that's all part of the learning curve.

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    A good teacher must know the rules; a good pupil, the exceptions.

    Martin H. Fischer

    Thanks Gary.

    Apologies, poor choice of words on my part. Sorry for your loss.

    HP

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    You can immediately gift the property to the LTD company and create a directors loan account.

    No capital gains will arise but you will trigger SDLT.  Sounds bad but in future you can draw down tax free.

    Compare lenders and avoid “creative tax advisors” it’s pretty straight forward.

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