Buying BTL property through (none property specific) ltd co
Discussion
Hi,
Looking for some advice.
I run a Quantity Surveying business and have recently worked with a local developer/letting agent on a new build scheme.
I got chatting to him one day and he asked did i own any property that i let out - which i don't.
He's since sourced me what seems a reasonable deal and is giving me first 'dibs' on it before speaking to his usual investors.
The idea is i believe a fairly standard model of taking some of the money out of my own business as a deposit to purchase the property at a reduced price, in the company's name, or that of a 'special purpose vehicle' company, then re-mortgage in a few months to get my deposit back and then take an income on the letting.
Big question is though - business mortgage - interest only or repayment. Quite surprised that i've spoken to a few folk who do it and all have pretty much said to do it interest only.
I have an appointment booked to meet my accountant but is it generally that clear-cut that i'd be mad to look at repayments?
In terms of the maths, running a quick calculator online, the property would still return a decent % on a repayment mortgage.
Or do i just withdrawn the funds as a divi, pay the tax on it personally, and hold the property in my own name?
Any help from the PH masses appreciated.
Looking for some advice.
I run a Quantity Surveying business and have recently worked with a local developer/letting agent on a new build scheme.
I got chatting to him one day and he asked did i own any property that i let out - which i don't.
He's since sourced me what seems a reasonable deal and is giving me first 'dibs' on it before speaking to his usual investors.
The idea is i believe a fairly standard model of taking some of the money out of my own business as a deposit to purchase the property at a reduced price, in the company's name, or that of a 'special purpose vehicle' company, then re-mortgage in a few months to get my deposit back and then take an income on the letting.
Big question is though - business mortgage - interest only or repayment. Quite surprised that i've spoken to a few folk who do it and all have pretty much said to do it interest only.
I have an appointment booked to meet my accountant but is it generally that clear-cut that i'd be mad to look at repayments?
In terms of the maths, running a quick calculator online, the property would still return a decent % on a repayment mortgage.
Or do i just withdrawn the funds as a divi, pay the tax on it personally, and hold the property in my own name?
Any help from the PH masses appreciated.
What makes you think you can buy significantly below market value, so much so that you’d easily be able to remortgage at a higher value, when house price growth is slowing in a lot of the country?
If it sounds too good../
To answer your legal entity q - SPV if buying through a company. Lenders don’t like companies that also trade in something
If it sounds too good../
To answer your legal entity q - SPV if buying through a company. Lenders don’t like companies that also trade in something
Gassing Station | Business | Top of Page | What's New | My Stuff