Selling a BTL to my company to release cash.

[98elise]

I will very shortly have large chunk of cash sitting in my Ltd Co which is enough to buy one of my BTL's. The mortgage is about 50% of the value, and i have the same on second BTL. Essentially I could release the cash to pay of both mortgages, with one BTL now being a company asset, and one being mine.

I get very little interest on cash in my company account, and I'm paying 4% on the mortgages.

I know i will have to pay corp tax on the rent, and there is no CGT alowance on the property, but are there any other downsides?

Getting rid of the mortgages seems like a sensible plan to me but does it make financial sense?

I'll be speaking to my accountant on monday, but its always good to hear other peoples experiences/advice.

[anonymous-user]

Have you considered taking the money out of the company personally and paying off the mortgages?

Are the mortgages IO or repayment? If the latter and if well covered by the rent, I would leave them for now

Generally speaking, I wouldn't want to mix up resi property with any other ltd co activity personally

If you want to move the BTLs in a Ltd, have you thought of a new Ltd which could borrow the money from your existing Ltd

Edited by anonymous-user on Sunday 21st February 13:11

[98elise]

JPJPJP said:

Have you considered taking the money out of the company personally and paying off the mortgages?

Are the mortgages IO or repayment? If the latter and if well covered by the rent, I would leave them for now

Generally speaking, I wouldn't want to mix up resi property with any other ltd co activity personally

If you want to move the BTLs in a Ltd, have you thought of a new Ltd which could borrow the money from your existing Ltd

Edited by JPJPJP on Sunday 21st February 13:11

Thats a good idea, it would keep it simple.