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Marc

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  1. Thanks Lilla, just as i thought, my concerns is, that the conveyancers i have spoken to so far (albeit only two) have very little knowledge or understanding, in fact less than me! Doesnt make for a good start......
  2. Hi, does anyone have any experience of "Multiple Dwelling relief (FA2003/Schedule 6B)"? I'm assessing whether or not to move the 6 BTL properties that myself and my brother jointly own in personal names into a Ltd Company. One of the major factors in my decision is the amount of SDLT i will need to pay by moving these 6. I have come across the Multiple Dwelling relief (FA2003/Schedule 6B) which states:- "Where 6 or more dwellings are purchased in a single transaction the purchaser can choose whether to apply the non-residential rates of SDLT.” The Ltd Company i set up would in effect be purchasing these 6 properties and if i did this in one or a 'linked' transaction, could i take advantage of this relief? If this was an option to me i would reduce my SDLT liability significantly - my questions is, has anyone done this? had any experience in this? or could offer me any words of wisdom on the subject??
  3. Thanks Debbie, so as an example, if i have sell a property and my gain is £22000 and i hold this in my own name, i will get my CGT allowance of £12,000 and pay 28% on the remaining £10,000 i.e. £2,800. If i hold this property in a Ltd Company, and my gain is £22,000 - i would pay corporation Tax (soon to be 17%) on the £28,000 i.e. £3,740.00 Purely from a 'sale' and 'tax' perspective have i missed anything?
  4. Hi, quick tax question for the people far more knowledgeable than me! i understand that an individual when selling a BTL property will pay capital gains tax - on the gain (excluding my allowance). i am a higher rate tax payer, so i understand this would be at 28%. if i hold a property within a ltd company and then sell it, i pay corporation tax - can someone tell me what the rates (%) are and is there such a thing as an allowance, like there is with CGT?? Many Thanks Marc
  5. Hi, looking for some advice as i cant quite seem to get my head round the best thing to do, so here is my quandary:- I own 6 x BTL property, all with personal BTL mortgages on, all in mine and my brothers name. My accountant is telling me that i should start to move these properties across to a Ltd company. At a high level this makes perfect sense as we limit our tax liability as we are both higher rate tax payers, but here is my scenario and to use one of the 6 properties as an example:- NB: all figures have been rounded for ease. Current property value is c. £160K, mortgage balance is £77K, current interest only mortgage payments are £149 pcm, service charge is £75 pcm, incoming rent is £795 - profit is £6.8K per annum Assuming no other expense/income, me and my brother will pay c.40% tax on the full £6.8K next year = £2.7K, so we retain £4.1K as cash in the bank If i sell/transfer to the Ltd company at £160K (to release the equity) at 75% LTV this would release c £44K for me to reinvest which is great, but..... I would then be hit with a £8K SDLT, so my £44K becomes £36K, my mortgage payment would go up to c £325 pcm (working on 3.19% interest only Ltd company BTL) - this would increase my outgoings on the property by £2,112 per annum, so my annual profits decrease from £6.8K to £4,688 per annum. I then pay 20% corporation tax on the £4.68K, leaves me with £3.7K. So, in my head, by moving to a ltd company, i will be c. £400 worse off (the difference between £4.1K and £3.7K above) every year and would have had to pay £8K SDLT, plus conveyancing, solicitors and mortgage brokers etc - this doesn't make good financial sense does it? Although, i also accept i would have £36K to reinvest..... but all that being said, why would i not remortgage in our personal names again at £160K, release the £44K, increase my mortgage from £77K to £120K, but with the mortgage rates on offer right now, actually not increase my current monthly mortgage payment. Surely this is the way to go....? What am i missing....? Would really appreciate some thoughts, friendly advice from the guys on the forum. Many Thanks MB
  6. Hi, would appreciate anyone's views on giving out a 4 month AST and how that stands legally? I am in a position whereby i may need to offer my BTL property for rent on a 4 month agreement, but im very conscious that the minimum has always been 6 (as far as i know), so does a lesser period i.e. 4 months change the legalities of the agreement in anyway? Be great to get peoples thoughts as to the pro's and cons on such a short AST? Many Thanks
  7. Hi, some quick advice/recommendation. I always like to use 'comparison' websites, for pretty much anything that i want a quote for i.e. car insurance, mortgage rates etc - it gives me a good starting point. The one thing i cant seem to find is a quote comparison site specifically for the conveyancing of a BTL purchase under a Ltd Company?? is this because the charges/cost for conveyancing is no different whether it is in a personal name or a ltd company? im assuming there will be slightly more legal work required, but surely not that much? Should i only ever choose from the lenders approved list of conveyancer's? is there a reason that people would ever choose someone that isn't on the 'list'? Would appreciate peoples view? Many Thanks
  8. Hi, being relatively new to this, i am about to advertise my BTL for rent and what i am finding very difficult is working out what/who to use for 'tenant referencing' service. There are so many companies out there that offer this service, all at a different cost, with different elements and with also what appears to be different outputs in terms of what you get for your money - im just confused and would love to hear if anyone has any recommendations of companies that they have used, are tried and tested and deliver a great tenant referencing service! i just want to be sure i choose the right tenant for my property!! Appreciate your thoughts.......
  9. Personally i have never used a broker, but now, for the first time i am looking to purchase through an SPV and need a Ltd company mortgage, i would feel much more comfortable talking to broker and getting their advice etc I've come across a company called "Simply Life and Mortgages Ltd", a 'whole of UK market mortgage adviser' and i have to say the team there, appear to be very knowledgeable and very customer focused. My only concern, not having used a broker before, is the fee? I'd be interested to hear peoples views on whether their fee of £499 is reasonable? Would people expect it to be less, or is it about the market rate for a decent broker?
  10. Hi All, my first post on the forum, but I have been listening intently to the podcasts etc over the last 6 months. I'm looking to get peoples thoughts on "Company v Personal" purchase of a BTL. I am the owner of 6 x BTL acquired over 15 years ago and have let these run their course. They have provided good returns and all are currently on BTL mortgages in mine and my brothers name. We are about to purchase (its been a while) a 7th BTL property, but all this discussion around whether or not this purchase should be made through the setting up of a ltd company or in personal names has confused me..... Both my brother and myself are higher rate tax payers and setting up a Ltd Company and purchasing via this method seems the sensible thing to do for tax reasons, but I want I don't really understand is what happens further down the line? What happens if we decide we want to sell it in 10 years time? is that easy? what are the tax implications? how can we avoid paying a load of tax? what if I want to pass it down to my children? what are the implications there? I'd really appreciate everyone's thoughts/comments/suggestions - we have been out of the 'game' for a long time and what I have very quickly learnt is, BTL is a very different place now! Look forward to hearing from some far more experienced and educated investors than me.....
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