Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 3 weeks ago 35
We’ve built up a private property portfolio of 4 houses, all rented on ASTs. Currently, each property has been funded with a cash deposit and separate BTL mortgage using my wife’s salary for the multiplier. We use an agent to get tenants and manage the day to day.
The cash pile is now running low, but we have about 50% equity across the portfolio and we only buy when rents comfortably cover the required borrowings. We’d like to set up a limited company, transfer the portfolio into it and remortgage commercially to release equity to use as further deposits, with the lender providing further advances as and when we find the right properties.
Question is – any idea how the property transfer can be done tax efficiently? If we sell and buy at original purchase price, there will be stamp duty to pay. If we sell and buy at current values, there might be CGT as well. Etc. etc.
I am talking to an accountant, but wondered: Has anyone done this? What did you do? Did you find any pitfalls or workrounds? Tips, suggestions?
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