Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
My curren situation is i have just had a offer accepted for a house. As I have one house with a mortgage in my name, this will become my second house. So this will mean, I will have two homes in my name with two mortgages. My wife also has a house in her name with no mortgage remaining. My father has a house in his name with no mortgage but he ideally wants to put that in my name in the near future.
I will have two homes which I will rent out in the short term with possibly my fathers house a third although this is long term.
My question is it worth purchasing this house now as a limited company and if so what would be the benefits? Would there be more savings or should I do this once I have all three homes? Also my long term plan would be to give all the properties to my children.
Personally, if it's one property you're buying then I can't see any point in going Ltd. I spoke to my accountant regarding this matter and she told me that on my first buy as a ltd company I may end up being worse off.
When you buy a second property with a value of £125,000 or below that holds a penalty of 3%, anything above that is at 5%.
You don't have to pay these extra rates when registered as a ltd company, but you pay a higher rate of interest on your mortgage. For me, at 3% it works out cheaper and having access to the lower interest rates.
Hope this makes sense.
I think you may be mistaken here, or have a read it wrong?
The extra SDLT does apply to Ltd purchases the same as it would personal.
Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk
You really need to seek professional tax advice, as the answer is very specific to your situation and personal circumstances.However, this thread may give some direction:The BIG tax issue: Should I incorporate?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Thank You Vanessa that is a fantastic read
Do as Vanessa suggests you will pay the additional second property SDLT of 3% however you purchase including a ltd co
I have found that I will be better off buying through a company format, you may be worse off. As Vanessa has stated the answer is very specific to your position.
I would add to that not to limit your considerations to the tax benefits but to compare all advantages/disadvantages. As you are considering your children also take some advice on succession planning as this is likely to influence your decision.
A good teacher must know the rules; a good pupil, the exceptions.
Martin H. Fischer