Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 3 weeks ago 35
We recently set up a family partnership company through Property118 to enable us to split property income between my wife, daughter and myself for tax efficiency. We currently own and rent out 2 properties in Dorset.
This year our daughter has started university and we are considering purchasing a property for her and a few friends to live in (the friends paying rent). Local properties with HMO approval are £20-30,000 more than similar ones without it and we are considering possible options in the area as HMO approval is unlikely on a new property. One option we have would be to purchase a 3 bed “family” property jointly in our daughter’s name which she could then use and rent out the other 2 bedrooms. This wouldn’t then require HMO approval.
My questions are these:-
Ideally, we would purchase the property with our partnership company which our daughter is a part of but would she then be considered an owner as far as HMO is required?
Our daughter has money in a first time buyer ISA. If she were to be involved in a property purchase with us directly or via the partnership, would this count as her first property purchase and she would have to use her ISA money?
Grateful for any advice.
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