Smart Company Structures For Your Property Business

Smart Company Structures For Your Property Business

18:49 PM, 28th August 2020, About A year 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 provide an overview of your circumstances and what you are looking to achieve.
  • Landlord Tax Planning Consultancy is the core business activity of Property118 Limited (in association with Cotswold Barristers).


Comments

by Luke

8:51 AM, 8th November 2020, About 11 months 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?

Luke
Luke

by Luke

9:28 AM, 8th November 2020, About 11 months 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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