Tax

Interesting!

Could you explain how you have been able to convince any lenders involved to give permission for your business activities.

As far as I am aware few lenders give consent for the activities you are involved in.

Perhaps you could advise as to which lenders have been so helpful in enabling you to proceed into non standard business activities for the mortgage obtained!?

 Many LL would like to  consider the options you seem to have been able to manage.

But they are prevented by their lenders from doing so.

Obviously one presumes that lenders are involved in all your business activities.

 Perhaps you could enlighten us as to how you have managed all these issues.

Hi Paul,

In the company so far I only need lending for the BTLs, these are not an issue as lenders mostly insist on a personal guarantee. The R2Rs are more recent acquisitions.

I have a HMO and BTL in my own name, would be very costly in capital gains to transfer now.

Which aspect do you refer to as being particularly difficult?

Many LL have existing standard BTL mortgages and would like to engage in SA and R2R but their lenders won't allow them to.

Also standard BTL mortgages would be invalid for a HMO if created out of a standard property.

How do you go ahead with a HMO refurb from a standard property if you were not able to convert to or source a new Mortgage for a HMO?

It is also a requirement that you inform the lender of any major works to a property.

I see, I give mortgage companies all the details about my rent to rent work, with the personal guarantee for the BTls they are fine with it.

I dont convert BTLs into HMOs or SA. If i did i would obtain specialist mortgages.

My question is really about tax and whether there are tax savings if I split the business into 1, 2 or 3 parts. Any if there are other issues around that. Just trying to work out the optimal tax structure before it gets too complicated to split these things out.

Very interesting  that you have lenders that are willing to allow the structures you use.

Most lenders would not allow such creative structures as you use

I'm sure many LL  would like to know which lenders you use that are so compliant with your working methods.

Perhaps you could list them to assist other LL  considering  operating the same way as you.

Many S24 LL  are looking for alternative  strategies especially  SA but are currently constrained by their existing lenders

You have done ever so well in sourcing such compliant lenders.

As for your tax issues etc I reckon you really need specialist tax advice.

RITA on this site springs to mind as the advisers to go to.

It makes sense to establish the most effective tax position  of your business before you venture further  into expansion etc.