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  • Buy-to-Let

    Remortgage through limited company

    Dear Members

         I’m currently in a process of a purchase of BTL flat through new set up limited company. I have an mortgage offer for 2 years fixed product with one of the UK lenders. My concern is if I will be able to remortgage in 2 years to release some equity tax free same as personal?

    Do you have experience with it? Can you share your thoughts?

    Many Thanks

    Paul

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    You’ll be able to remortgage but only draw out your deposit tax free.

    any excess will be taxable.

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    Hi

    Thanks for your advice. Would it still be taxable if I remortgage to purchase another property through ltd company?


    Thanks

    Paul

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    Directors have to relise that equity in a property with in the company is not there personal money box

    you can’t just dip into cash

    there are rules which must be followed

    directors loans

    salary

    dividends

    ect are the only way you can draw cash

    this is the huge difference between personal ownership and a company owned property

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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.

    Hi

    Thanks for your advice. Would it still be taxable if I remortgage to purchase (reinvest) another property through ltd company? No need to release the cash.


    Thanks

    Paul

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    If your useing the funds to purchase another property there is no tax to pay 

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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.


    The money that you put into the company to buy the property is a directors loan which you can take out without tax implications. Everything over is taxed.

    Ie, your deposit +buying and refurbishing costs are £25k. 2 years later you remortgage at a higher rate and you can take the £25k out without tax

    But I don’t recommend it. Companies are expensive to run and your borrowing costs will be double

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    I am in the middle of remortgaging the first property I bought for my company. No problems so far (and the rate is not double).

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