Advice and thoughts on a deal please?
Hi All, I just want some advice on a prospective property purchase.
A block of 4 purpose-built flats on one freehold title (is that an issue?) and they are all 1 beds. £265k purchase price with £2k rent pcm (pretty healthy demand and already fully let).
On the face of it seems like a pretty decent deal to me. I’d buy for income so not too concerned with capital appreciation. One query though would be whether to purchase as a limited company. I’ll retire in a year or so and be a basic rate taxpayer, so as I understand it section 24 won’t make that many odds to me.
Thoughts?
Cheers
Dave
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Jarndyce v Jarndyce?
Member Since July 2013 - Comments: 1264 - Articles: 1
3:39 PM, 10th January 2021, About 5 years ago
Are you going to be using a mortgage? If so the title may be an issue. Some specialists e.g. Paragon lend on multi-unit blocks but their rates are a bit higher. To split the title will be costly as leases would have to be drawn up. If no mortgage required then S24 is not relevant anyway.
Member Since October 2020 - Comments: 1137
4:38 PM, 10th January 2021, About 5 years ago
So the flats don’t each have leasehold title? Do they share a single electricity and water supply? Do they have individually registered addresses? Do they have their own Council Tax banding? You might speak to the local Housing Dept once you have more answers to check that they wouldn’t regard this as a single building HMO.
Member Since August 2015 - Comments: 6
10:39 PM, 10th January 2021, About 5 years ago
Thanks for the replies.
The flats are all on one freehold but have different addresses, council tax, epc’s etc. I’ll check on the HMO aspect. There would be a mortgage involved though, but as mentioned, if a basic rate taxpayer I’m struggling to see a reason for a ltd company let.