Ltd buy to let mortgage restrictions

[PurpleMoonlight]

I have a significant amount of cash in the Ltd loosing value hand over fist, so am thinking about a buy to let.

Do the lenders prohibit it being let to an employee or director?

[ziontrain]

Probably not, but I can't imagine the accomodation BIK will be pleasant and (depending on value) you could have an ATED issue too.

[PurpleMoonlight]

Rent would be paid at market rate, so no BIK issues.

[Jockman]

If there is a significant volume of cash, why the need for a lender?

[JapanRed]

Jockman said:

If there is a significant volume of cash, why the need for a lender?

Daft comment. He could have £200k in cash but the house he wants to buy be worth £250k.

[anonymous-user]

PurpleMoonlight said:

I have a significant amount of cash in the Ltd loosing value hand over fist...

IMO you should consider paying your "low" taxes to get the cash out before Comrade Corbyn strolls into Downing St. Even if St Theresa manages to cling on to power she's probably going to hike taxes anyway. Take the money and run. Flexibility has a considerable value.

[Jockman]

JapanRed said:

Jockman said:

If there is a significant volume of cash, why the need for a lender?

Daft comment. He could have £200k in cash but the house he wants to buy be worth £250k.

Just bought a btl with surplus cash in my own Ltd company last year. No need for a lender. In your example why not just buy a £200k btl. Or is that daft too?

[Killer2005]

As long as it's not let to a family member you technically would be ok however would depend on individual lenders offer conditions as to who it can be let to.

[anonymous-user]

I think he's talking about sterling crashing, so a significant amount! must be self funding, I can advise you OP

[PurpleMoonlight]

Nope, it's losing value due to inflation.

I'm now looking but haven't seen anything I like yet.

[anonymous-user]

Inflation?

[PurpleMoonlight]

Yup, you know, that thing that affects the purchasing power of money.

[JapanRed]

OP I’m in same boat as you. Have a few hundred k sat in a Ltd company and no way to earn good interest. Keep tying it away for 1-2 years but business savings rates are terrible. Don’t want to risk it on the stock market either.

I’m considering a second Ltd company, a £100k intercompany Liam from company 1 to 2. This £100k can then be used as the deposit for 3-4 BTL’s.

[PurpleMoonlight]

What advantage to you think utilising a new co to using your existing co?