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  • Mortgages & Finance

    New LTD or not?

    So im a first time buyer aged 22 with a fairly profitable ltd company selling digital fitness plans ect so virtually no overheads. However ive got great cashflow and capital building up that I now wish to spend on property. Mainly BRR via bridge to let finance. Should I set up a new LTD company to buy property with or buy in my existing one?

    If I set up a new LTD company would I be able to loan funds from my existing company every month? call it a 0% loan as im director of both. As long as i Pay all the corporation tax from the profits of the first company HMRC shouldnt have a problem with me loaning the remainder to my new LTD?

    Many thanks

    Max

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    We can do mortgages for Trading Companies at Bespoke Finance but the choice of lenders is severely limited.

    Mortgage Lenders are not fond of trading companies, for example, a customer may claim against the digital fitness part and the property they have money secured on could be in question. They would rather it be in a "Special Purpose Vehicle (SPV)" where such claims, in a separate legal entity can not reach it.

    You will want to talk to an accountant on how to structure the inter-company loans. What is the best for Tax Purposes for example for your circumstances is best known by someone who can advise on Tax.

    Trading Company or SPV - would love to assist with your limited company buy to let at Bespoke Finance on 08009202001 or email hello@bespokefinance.info

    We do quite a bit of Bridge-to-Let or Renovate-to-Let as some may call it for property investors.

    We wrote an article about the Advantages and Disadvantages of Limited Company Buy-to-Let a while ago.

    In 2000 there was no more than 5,000 Limited Company set up for Buy-to-Let, seven years later in 2017 alone 35,000 were established. The increase came about due to the Conservative 2015 Summer Budget reducing mortgage interest relief for landlords holding property in a personal name. Limited Company Buy-to-Let became an overnight hit.

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    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


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    I would keep it separate and invest in your own name

    Use a SPV as a second choice its not as good as personal ownership


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    You should tell the que outside.

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    _________________________________________________________________________


    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


    _________________________________________________________________________

    I think if you can keep it personal its much better

    A company needs a lot of thought

    The reason I think most are going LTD is S24

    But I think its a mistake long term unless your doing it for other reasons other then S24


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Speak to a qualified tax advisor, there are different methods and different tax implications for inter-company loans, some favourable and some not.

    I believe you can lend through loans, directors, shareholders or dividends, but I've no idea of the implications of each.

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    Ask your accountant about tax free dividends to a holding company.

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