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  • Mortgages & Finance

    Offshore company mortgages for UK property

    Hello,

    Can anyone advise on whether it's possible to get btl mortgages for a UK property if it is to be purchased by a new offshore company (bvi , jersey, isle of man etc) incorporated for this purchase I.e. SPV . If so which lenders offer these products and are rates competitive?

    I know that there may be no tax advantages or I may end up paying more tax but I am considering exploring this route simply for privacy reasons. At present companies house displays all a directors uk incorporated companies and profits. I am not comfortable with friends, family and competitors knowing all my business.

    Many thanks

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    There are lenders who do this but don't expect a competitive rate. There is no tax advantage for residential property (and from April 2019 no advantage for non-residential property either).

    I don't think that there is much disclosure which shows wealth and non which shows income which need to be disclosed publicly. You should be looking at publishing filleted accounts which give a balance sheet only (and you can use historic cost rather than value to make things even less relevant).

    If you acquired in your own name nothing would be published.

    Give me a shout if you have any questions - mortgage, accounts and tax are my areas of professional expertise. stuart@johnsonsca.com

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    Tax advisor and mortgage broker

    stuart@johnsonsca.com

    02039077022


    Thank you for your reply Stuart.

    What are the loan to value ratios? Is a standard btl at 75% borrowing possible? Can you give a rough estimate range of interest rates? Would I possibly end up paying more tax?

    I will look in to your comments on accounts returns format and possibly get in touch. But my unserstanding is the charges register on companies house will always show which properties I have loans against. So it's easy for nosey people to know all the properties I may acquire.

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    If you are buying through a UK company then the charges will show. Are your friends and families really so nosey?

    Yes 75% is possible but I need to know more about you and the property. Email me and we can take forward (stuart@johnsonsca.com)

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    Tax advisor and mortgage broker

    stuart@johnsonsca.com

    02039077022

    Hi there,

    I have done a little research on this and we do not know of any lenders who will lend on a Limited Company BTL where that company is registered offshore. 

    The main reason citied is that, for the very reason you are looking to do it this way, is that as it is offshore then the lender cannot research the company as part of their standard checks in the application process. 

    That said, private banks might have a more favourable outlook as they deal with people with overseas income/businesses all the time.  So long as you fit their usual high net worth criteria and the loan size is big enough (often £500k minimum for individual transactions or portfolio purchase perhaps) then they would be worth approaching (e.g. Coutts, Investec, Butterworth or Handelsbanken as examples) but they will be noticeably more expensive. 

    I hope the reason above makes sense,

    Cat

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    Call the PT Broker Hotline on 0333 363 6507 or email us at ptbrokers@johncharcol.co.uk