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david slater

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About david slater

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  1. I don't think it would make much difference to be honest. I am not familiar with the Barclays account, do they charge? Starling is free which is a bonus.
  2. Gavin Regarding refinance I like to do it once after the first 5 year fix comes to an end. This is to release my initial capital. I am content then to leave the asset alone and allow inflation to play its part on my debt in relation to the increasing value of the property. You can only buy commercial property through a SIPP so residential would not work. You can also use a Small Self Administered Scheme (SSAS) for commercial properties but can also lend money to a linked limited company to purchase property (I think this would include for residential property). This might be an option if you have built up a decent private pension or have a suitable work pension that you could transfer into a SSAS. This is a highly specialist area though so you would need to take advice from a financial adviser suitably qualified and experienced in SSAS'. There are a couple of books about it on Amazon. I read this one which was useful for an overview. This is an area I might look at in the future but not for the time being. If you need any help with regard to setting up a limited company and property accounting you can reach me on david@accufy.uk. Best of luck with everything.
  3. Yes although there would probably be some allowable expenses that would reduce your profit further. If you are conducting refurbishments of the properties you buy then you may find you run a loss for the first few years which can be carried forward to offset against future rental profits. It could even be a few years before you pay any corporation tax at all. 1 property per year seems like a reasonable target to aim for. I am also looking to buy one per year in my limited company. Sometimes I get slightly less and this year it is looking like I will get 2 in. You will find that your portfolio starts to snowball after a few years due to increasing rental profit and the ability to refinance properties and release further capital to buy more (assuming you want to do this). This will be helped further by the low corporation tax environment and ability to deduct mortgage interest as an allowable expense. This will help to compound your returns quicker. Why sell? Can you not look to access some equity by refinancing? That way you can still benefit from further capital appreciation and rental profits in perpetuity. If you are looking to retire at 50 then these properties would come in handy to support that and with your income being reduced due to retirement you would pay less tax on them.
  4. Seconded. I started using Starling this year they seem really good. There is no requirement to solve a puzzle on an encryption key card to send money either.
  5. Hi Sean Whether to start buying in a Limited Company or in your own name will be personal to you depending on your situation. I am assuming you have a decent income coming in from your building trade work that would push towards, or you are already a higher rate tax payer and this is why you are looking at the limited company route? You don't want to be living in a property you are buying through a company. This will breach lenders terms and could have some tax implications down the line. Have you thought about buying your next property to live in as a bit of a project. Live in it whilst doing it up. You could then sell at a later date (that would be acceptable to HMRC) and take some tax free capital gains as it would be your PPR.
  6. Hi Lucy Why not start with one and see how you enjoy the process of buying/renovating the property and letting it. You can then make a call on whether to go for property 2 and 3 depending on your findings. I dont think you need to rush in and buy 3 at once. Good luck
  7. As a general point yes you can sell tenanted property. I have just had an offer accepted on such a property as a buyer. If the property is not to be sold with vacant possession then you will narrow your potential buyers down to investors who will likely want a good price. This will possibly be offset slightly by the fact that you will keep getting paid rent up until the point of sale. There is a company with a a website who specialise in tenanted sales. I have watched some tenanted stock do well in auctions recently too although this was higher yield than you are describing.
  8. These could be expensed so long as they were wholly and exclusively incurred for the purposes of the business. They are revenue costs and so an allowable expense. It wouldn't matter if you didn't acquire the property. Not enough info to answer.
  9. Hi These are the SIC codes used in property companies. 68100 - buying and selling of own real estate. Think buy-refurbish-sell and property trading. 68209 - letting and operating of own or leased real estate. Investment companies for holding property and renting it out. 68320 - management of real estate on a fee or contract basis. Property management company. 68310 - real estate agencies. Deal packaging/sourcing for other investors. A company can have up to 4 SIC codes. As a general rule it is best to keep investing activity (68209) and trading activity (the other 3) separate as both are treated differently from a taxation perspective. This wouldn't apply if you were managing your own properties held in your own investing company. It is also worth speaking with a mortgage broker who specialises in BTL as lenders will probably have a preference as to which SIC you use. Speak with an accountant or tax advisor as the company route isn't always the best way to achieve what you describe here if the intention is to live off the rental income in the near future.
  10. Hi. Happy to help you with this part if you would like to talk further. david@accufy.uk
  11. Hello You need to factor in the increased mortgage costs (about 1%) and increased accounting fees you would pay for running a limited company, not to mention the additional bureaucracy involved. I would suggest that based on your point below you would be better sticking to investing in your own name.
  12. The Art of execution, zulu principle and free capital. All great books.
  13. May create a situation down the line where Annual tax on enveloped dwellings is paid. (ATED) also speak to a broker but I know you can change btl to personal mortgage if in own name, can’t see how you could do the same if in company.
  14. Oh and also have a think about whether the kids will live in these houses in the future. This would be more straight forward if owned personally.
  15. Chris Difficult to answer this question without knowing more information but here are some points that might help your planning. Own name vs Limited Company both have advantages and disadvantages. The main advantage of the limited company is the ability to deduct mortgage interest as an allowable expense and low corporation tax environment - This provides opportunities to compound wealth. The mortgage interest issue may be less of a consideration for you if you plan to pay down mortgages quickly, although conversely use of leverage is one of the prime advantages that a property investor has over investors in other asset classes. The main disadvantage of company is also the advantage of own name in that it is more straight forward to extract profits when in your own name. Extracting profit from company can result in having to pay tax. Interest rates are lower in own name but company mortgages have been getting more and more competitive and it might be that in the future they become more in line with mortgages for sole trader investors. You say x 3 properties will keep your wifes income below the higher rate threshold now, what about in a few years time, is she likely to get pay rises in the future? Will you stop at 3 or buy more in the future? Previously when I enquired about 10% overpayment on limited company mortgages it didnt seem to be offered (This was a few years ago now). A recent remortgage onto lendinvest shows that they accept this so there must be lenders out there who offer this. Best of luck with it all