Letting a buy to let apartment to own Ltd Company?
Discussion
Advice required on the scenarios below and whether any of these are legal:
1) Husband mortgages a buy to let property and let's it out to his wife's LTD company - husband has no share in wife's business
2) Husband and Wife duo let out their mortgaged buy to let to wife's LTD company
3) Wife lets out her mortgaged buy to let to her own Ltd company where she is the sole director
Which of the above is "above board"?
We are looking for an office space for the wife's business so if this is an option we could buy an apartment and use it as an office (no people will be visiting the premises - all work done online and on phones). B\etter than paying rent as we would effectively be paying for our own property.
1) Husband mortgages a buy to let property and let's it out to his wife's LTD company - husband has no share in wife's business
2) Husband and Wife duo let out their mortgaged buy to let to wife's LTD company
3) Wife lets out her mortgaged buy to let to her own Ltd company where she is the sole director
Which of the above is "above board"?
We are looking for an office space for the wife's business so if this is an option we could buy an apartment and use it as an office (no people will be visiting the premises - all work done online and on phones). B\etter than paying rent as we would effectively be paying for our own property.
To start with you'll likely have income tax to pay on the rental income that will probably negate whatever you're trying to save by doing this, the buy to let mortgage will have various conditions attached to it that expect to see a residential tenancy agreement in place, and depending on the property the freeholder and the local council might get uppity about a residential property being let to a ltd company?
If the Ltd Company is conducting business from the apartment, you might find that the Council require Business Rates to be paid. Also the Mortgage Lender might have provisions that the property is only let on a Residential basis.
There might be a case for the director of the company to personally rent the property and then claim back through their company on a "home office" basis, but you should really discuss this with your accountant as it will probably be an absolute minefield.
There might be a case for the director of the company to personally rent the property and then claim back through their company on a "home office" basis, but you should really discuss this with your accountant as it will probably be an absolute minefield.
Sounds like it would create more problems this it would solve.
Surely it would be easier to rent out the flat in the usual manner on an Assured Shorthold Tenancy to a third party and then you/ wifey just rent an office and pay the associated costs? I would have thought the price per sq ft of renting an office would be less than what you'd achieve for renting the flat.
Surely it would be easier to rent out the flat in the usual manner on an Assured Shorthold Tenancy to a third party and then you/ wifey just rent an office and pay the associated costs? I would have thought the price per sq ft of renting an office would be less than what you'd achieve for renting the flat.
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