Can a limited company get a BTL mortgage?

[traxx]

Just wondered if I wanted to buy a property inside my company can I get a BTL mortgage on it?

[Sarnie]

traxx said:

Just wondered if I wanted to buy a property inside my company can I get a BTL mortgage on it?

Yes, it's possible.

[Eric Mc]

Why would you want to?

[Sarnie]

Eric Mc said:

Why would you want to?

To pay Corporation Tax on the profits rather than Income Tax??

[z4chris99]

yes you can..

3 year fixed
libor + 2.75%
1% fee
65% ltv max
150% rent cover.

[Eric Mc]

Sarnie said:

Eric Mc said:

Why would you want to?

To pay Corporation Tax on the profits rather than Income Tax??

He may pay Corporation Tax on the rental profits but the directors/shareholders will pay Income Tax when they draw money out of the company - on top of the already paid Corporation Tax.

They will also lose out on the CGT personal allowance which is available when the asset is eventually sold.

[traxx]

z4chris99 said:

yes you can..

3 year fixed
libor + 2.75%
1% fee
65% ltv max
150% rent cover.

Thanks for the info

[zuby84]

Does the Ltd company have to have a trading history? I want to start transferring my properties into a Ltd company - but my current bank says the company (which the properties are going to be transferred to) needs to have 2 years trading accounts - but I haven't set up a company yet (as no properties to put in there!) Catch 22.

[Sarnie]

zuby84 said:

Does the Ltd company have to have a trading history? I want to start transferring my properties into a Ltd company - but my current bank says the company (which the properties are going to be transferred to) needs to have 2 years trading accounts - but I haven't set up a company yet (as no properties to put in there!) Catch 22.

The company has to be set up solely for the purpose of investment properties.

If the company has no trading history then the lender will revert to the individuals as per normal lending criteria.

[Burrow01]

Eric Mc said:

Sarnie said:

Eric Mc said:

Why would you want to?

To pay Corporation Tax on the profits rather than Income Tax??

He may pay Corporation Tax on the rental profits but the directors/shareholders will pay Income Tax when they draw money out of the company - on top of the already paid Corporation Tax.

They will also lose out on the CGT personal allowance which is available when the asset is eventually sold.

But if they use retained money from another company for the deposit they will not pay personal tax on that - several ways to skin cats