Smart Company Structures For Your Property Business

Smart Company Structures For Your Property Business

18:49 PM, 28th August 2020, About 3 years ago 2

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If you are investing in property you will want to do this through a Limited (Ltd) company.

However, there are limited companies and there are SMART limited companies for your property investments.

In this video (please click below), Mark Alexander of Property118 and I discuss smart limited company structures for your property business.

Landlord Tax Planning Consultancy is the core business activity of Property118 Limited (in association with Cotswold Barristers).

Please visit the book a tax planning consultation page to book your consultation!

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8:51 AM, 8th November 2020, About 3 years ago

Does a smart company structure make it more difficult for me to get mortgage financing or is likely to lead to a higher rate being charged on any financing (given the additional KYC burden, perhaps even on each shareholder)? It makes sense but if i want to grow the business i also want to keep financing costs as low as possible.

Or is the idea you keep the share ownership for the others below 5% so that the finance provider can essentially ignore them and just focus on you?



9:28 AM, 8th November 2020, About 3 years ago

Also, just to add, does this split of shares make any difference when to lenders when refinancing the property? For example if the property values have increased from £500k to £800k, but you have assigned the capital growth to the discretionary trust. I assume not as the value of the properties the lender is securing against is still £800k (irrespective of whether £300k of that gain belongs to discretionary trust). So can i assume this share structure does not make any difference when refinancing and does not introduce additional complications (e.g. additional KYC/signature of the discretionary trust)?

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