Buy To Let Mortgage and Renting to a Ltd Company

Buy To Let Mortgage and Renting to a Ltd Company

7:55 AM, 20th January 2014, About 8 years ago 12

Text Size

Hi All

I have another question I would like to put to anyone with experiences of Buy to Let mortgages.

I appreciate that with buy to let mortgages there is a restriction with regards to the mortgage holder living in the buy to property that the mortgage is attached to. Do you think this would extend to letting out the property to a limited company that is ultimately owned by the mortgage owner, indeed a guess a more fundamental question to ask is….is there a limitation in renting to a limited company full stop? Buy To Let Mortgage and Renting to a Ltd Company

The reason I ask is….I am considering buying a buy to let (mortgage is owned by me as an individual and not a limited company), but I want to let it out, as a first tenant to a limited company that is owned by me. As a director and employee of that company, I will then live in the property for a few months…until I get around to buying myself a proper residential house.

Many thanks

James



Comments

by Mark Alexander

15:45 PM, 23rd July 2016, About 5 years ago

Reply to the comment left by "lancelot spratt" at "23/07/2016 - 15:04":

We have taken advice on this and considered many variation on the theme since this question was first published in 2014. Understandably, most of the questions arose just after the 2015 Summer Budget when restrictions on finance cost relief were first announced.

The conclusion of all professional advisers has been that introducing a lease to a limited company has no tax avoidance benefits and can actually cause problems if the landlord ever decides to incorporate and use s162 relief.

For more details please see https://www.property118.com/tax/

by Craig Rennolds

17:40 PM, 20th August 2016, About 5 years ago

Hi Lancelot

In a recent thread concerning "home ownership is completely overrated" you kindly provided a link to the revenue website concerning non Dom status and and CGT. Would you be able to send the link to me again? As I do not seem to be able to find it!

Regards
Craig


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER