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Hey everyone, I have been told my very old grandmas property will be split between myself and my 2 sisters when she passes. Obviously a hard topic to look at but I want to be sensible about what options I have. My 2 sisters do not want to keep the property, as they want the lump sump of cash. I have a LTD company set up with my partner which we have yet to use for a property but intend to in the future for BTL. Is there a way to avoid inheritance tax? Can I buy the property into the company now? Does it have to wait until she has passed away? I’m keen to know the most cost effective way to manage this. Any help or advice on this would be appreciated! thanks fran

Hello all, I'm looking for some advice. Before my father passed he wrote a will leaving his property to me when I turned 21 and it would stay in the trust of my mum until then. My mum has been living in the property and due to the difficulty of the situation it never got transferred to me when I turned 21. I am now 30 and want to transfer the property but don't know the process of what I actually need to do and who I need to speak to. Does anyone know what my next steps should be? Many thanks in advance.

Hi, Some advice would be greatly appreciated. My family & I are discussing estate planning between my Sibling & I. We have a fair piece of property that could be split up into two independent premises There is a HOUSE & a commercial premise. There is potential to modernize & we potentially have some capacity to put that modernization in Train. THE question, is there a real need to complicate things too much? Under the parameters of inheritance, the limit for two children (would suggest that we would be relatively safe from CGT on sale From what I understand the HOUSE could be modernized incorporate 2 flats a flat each make the flats our main residence then subsequently leases 1 room out each. Then the commercial building an idea could be to lease the premise trough a newly formed company by my sibling & I, then sublet the premises to a third party. THE main thing I believe to avoid is the incorporation of the buildings into a LTD Co. YES? Or lease the commercial building to a third party, the rent would be split & the tax rate would be calculated given our salaries, YES? ANY tips, I thank you for viewing.

Hi My name is James. Bit of a back story; My dad bought a 2 bed flat near where I grew up in `97 after reading rich dad poor dad. He was terrified of making a loss and its turned into a gold mine. When he died in `04 my mum used the money from his life insurance to buy more property and now has a small portfolio. Two flats in South East London near where we live, a flat in Preston and a student pod in Loughborough. She built this up as her pension. It has had fantastic capital growth and great cash flow with a very low loan to book value. A little over a year ago my mum was diagnosed with dementia. She's still early stages but I it seems that she had not been managing will with her property's and finances in general for some time. She had always been quite secretive about her finances. But after a frank discussion she agreed to let my sister and I look after her finances for her to ensure that she is looked after. The properties need tending to and her taxes and accounts were a mess. It took me forever to search the whole house and find all the bits of paper and still don't have it any any real kind of order but i am working on it. We took financial advice from a tax adviser and decided to transfer the ownership into an LLP with my mum my sister and myself as members. This has the benefit of helping with inheritance tax but also means that my sister an I can manage the portfolio without having to use LPA all the time (which i have found to be frustrating and limiting.) a mum can still have all of the income. The process of transferring the properties into the LLP has taken a lot longer than i expected with lots of details I didn't know to expect. We need to refinance to cover the existing lending on the portfolio, i had to get a business bank account which Barclays made a nightmare [i might write a post about this] found out that the property bought in `97 had a short lease and needed extending. We want to draw capital out of the properties at the point of refinancing with the aim of having cash to be able invest further. Turns out lenders want to know exactly what we want to spend the money on. Ive felt like there has been a lot of hoops to jump through and i have been put through the ringer. much of it is a result of inexperience. And during this time i have changed jobs and got married. so have had a lot on my plate. I started listening to the property pod cast and found Rob and Rob kept saying "we talked about that in episode..." and so i thought i would start from the beginning and am just getting to the point where they are introducing the property hub and i heeded their advice to get on here and chat. My aim ultimately is to grow the portfolio and the cash flow so that if and when my mum needs more intensive care we can afford the best available. She currently lives a good life, has a great social life, plays tennis several times as week and goes on at least two cruises a year with her partner. but unfortunately she has a degenerative disease an i want to be prepared for the worst and provide the best. My first priority is my mum but I'm hoping that there might be some surplus for my sister, my wife an I to enjoy. I love the idea of the dream line and want to sit down with everyone and work out how to forfill everyone's dreams. I've yet to do this and want to work out how. In the short term i need to shaw up what we currently have. some of the properties are quite tired and need work to bring them up to a high standard, and things like extending leases. fighting with management companies ensure all service charges are paid and upto date, working out what has been spent in the past few years and see if i can get mum a rebate as im sure she overpaid. While the cash flow is good i feel that everything that comes in goes out on some unexpected debt or charge or tax bill. I like rob and rob's mentality of outsourcing and want to get a good team of solicitors and accountants in place. I feel like I've picked up a ball of sting with lots knots and ends sticking out everywhere and i need to weave it into a beautiful quilt. generally turning chaos into order. To this end i am really interested in finding processes that make everything run smoothly. The flat bought in `97 needs a complete refurb. Like I said my dad was scared of loosing money and spent the bare minimum at the time to bring it up to a rentable standard and has had no money spent on it since. now needs a new bathroom, kitchen, rewire, floors boards, carpets, boiler and more. Currently my wife and i rent it off my mum as nobody else would. slightly longer term i want to expand the portfolio and like i said the cash flow. I have followed the markets for years tried to invest myself and have several thousand saved up in sliver. i feel the property market might be in for a bit of a slow down with increasing interest rates and a slowing turnover environment i feel there could be a killing to be made with foreclosures and probate and distressed sellers in the next 18 months. I want to be in a position to pounce. While my mum mainly went for two bed flats im open to many options, considering shop's with flats above, airb'n'b property , im also interested in agricultural land. but as with everything i know little and want to learn. I look forward to learning lots in this forum and joining the community. I've already signed up for the meeting in Waterloo on the 6th September (august was fully booked) if there are any posts or threads that people can point me to relating to inheriting a disorganised portfolio or from someone with dementia. how to plan for dementia care. or regarding the process of transferring into an LLP. also i will soon be undertaking the large refurbish (i have to) and any threads relating to the process to get everything done as quickly as possible will be great. speak soon

My parents are looking to sell up and move into a bungalow but with bungalows being quite expensive they wouldnt have any money left over if they sell their house and buy fully. I am looking for a way for them to give me the money from sale so I can buy their next home with a mortgage so that they rent a home off me and have excess money available to themselves to enjoy their retirement years. My accountant already told me that if I was to rent to them a property at below market value (the price of the mortgage) that in the eyes of hmrc they would still be beneficiaries of the gifted amount so would be liable for tax so I would have to charge them what the rent for that area really was. So I'm wondering if anyone else had a similar strategy they used to help parents free up money rather than selling and buying as a straight swap?

Hi Absolutely new to this and want some advice before I decide on a strategy. My wife and I currently run a successful business partnership which puts us both close to the additional rate tax bracket. We are paying back a personal loan to buy out my old partner which will be paid in 4 years time. We have over 500K equity in our own home which the bank will let us borrow against. We own the business property in a SIPP fund (total SIPP value about 120K, no mortgage with rent paid by the business). The SIPP fund returns 4K a year after fund fees but the property has not appreciated in 10 years. We would like to retire when the old partners loan is paid off in 4 years time and we would need income of 50K pa. once retired. We may be able to sell the business in 4 years but it is not guaranteed (as we pretty much are the business). Currently we save roughly 25K a year after tax is paid. My initial thought is to start a new Ltd company for the properties and possibly make our children directors as well (future planning). I don't think there is any way of getting the money out of the SIPP (I took 25% 3 years ago as tax free cash). Should I re-mortgage our home (I can get a rate of 1.3% interest only but we would end up paying it) and use those funds to buy properties. Should I rely on the 25K a year savings as a deposit and take out a BTL mortgage at a much higher rate. Is there another way of doing this? Should the funds go into the company as a director's loan (so it can be repaid in the future if/when the properties appreciate). House prices in our region are typically 200K for a 3 bed semi and rent for 950 a month but happy to look at other areas. Our key aim is to get enough income to retire in 4 years and ideally (but not essentially) repay the personal loans in 10. Thanks for your thoughts - please be blunt. Tim, wannabe investor.

Hi everyone, This is my first time on this forum and website but I am keen to learn. I am 25 years old and living in London. Recently a family member passed away and left a London property to myself and my three younger siblings. They're aged 22, 20, 18. By the time the property is sold and the inheritance tax is paid we are likely to have a little over £100,000 each. I realise that this is a massive amount of money for all of us and I am keen to make the most of it. I plan to reinvest this money into a buy to let London property and I will strongly advise my siblings to do the same. In the interim between selling our inherited property I am trying to learn as much about the buy to let process as possible. At the moment I am considering two options: 1. Convince my other 3 siblings to pool together and invest in a London house worth around £500,000. We could pay the £400,000 up front and I could take a mortgage out for the last £100,000. With a 25 year mortgage at 3.9% it would be around £525 a month, myself and the second oldest sibling would pay this. Based on similar houses in the areas I've looked at we could rent for roughly £1700. This seems like a pretty secure option to me as the house could be empty for a few months of the year without us making a loss on it in terms of rent vs mortgage. Although I'm slightly worried about finding tenants for a house like this. I'm also aware that this a very large investment for a first time buyer and I don't' want to make any silly mistakes 2. The 2nd option I'm considering is to go it alone and invest my £100,000 into a studio flat worth £150,000. Taking out a mortgage for the last £50,000. In this case a 25 year mortgage at 3.9% would be £262 a month, which is fairly manageable. I could hopefully rent out this flat for roughly £800 a month. Again the property would have to be vacant for 9 months before I make a loss in rent vs mortgage. Hopefully this property will be much more manageable and will give me a chance to learn the buy to let process a bit. My siblings can invest their money in a similar way. There's two options I'm considering along with some of my reasoning. Of course there may be something glaringly obvious that I'm overlooking, in which case please let me know what I'm missing. For those of you who are a bit more experienced/knowledgeable. What would you do in this situation? Any tips would be greatly appreciated. Thanks Conor

Hi, My parents are both recently retired and have the family home which is worth approx. 450k with 4 years left on mortgage. They want to move to a smaller house worth approx 250k but still keep their existing property with a view to renting it out. The plan is for them to sign the house/or houses over to me and my sister at some stage. please could someone advise what the tax implications of doing this are? What would be the best solution to this scenario which would allow us to keep the family home, rent it out and for my parents to move into a smaller home. Would it better for them to keep everything in their name until further down the line or make changes now? Any help or a contact who could help would be much appreciated Thanks

I have just inherited some money from the sale of my parents house. I am very new to the property market but in my search for houses via RightMove, I have had several people I know who live near me in Doncaster say that they would love to be my tenants, That is great, but another friend has offered me his house in Hungary for a fraction of the cost of house prices in UK. I have checked out house prises in his area and it is at a reasonable price and it it is close to a large city. Not sure if my first house that I buy should be overseas where I have no tenants (but letting agents could help) or buy close to home where I know the tenants?

Hi folks Just dropping-by to say "hi" and introduce myself, I've come here via the excellent podcast (after browsing Itunes for Property Development Podcasts) I trained as an architect and have been working in the industry now for 5-6 years or so... Lots of experience with planning approvals, project development, pricing, technical specifications etc... and plenty of on-site experience too, but never for myself (typical eh?) I've completed projects for friends in the past and remain on good terms with all my former clients, and have managed to realise incredible wealth and value for many clients in the past - more than a few of them have been pretty-darn good-looking too! - the buildings, not (necessarily) the clients!........, although a few of them ... My father sadly passed-away in May last year and I have realised quite a few changes in my life since then, one of which is the earnest enthusiasm and pressing desire to get my finances in order and establish a long-term durable wealth foundation for myself and my family that will allow us all to have more free time to realise creative projects and make the world a more beautiful place. (unfortunately despite the hype / media bias, architecture does not a wealthy-man-make, not as a pure career in any case, hence property developmetn and landlording too!) I have recently been looking to investing in some buy-to-let properties in Hereford, and will be going into business with my mother to buy out first property to rent to professionals / students (depending on location). My local knowledge of Hereford is excellent, but my knowledge about the ins-and-outs of real-life property investment is limited but growing every-single-day. At the moment I am just keen to lurk around the forums here and maybe pick-up a few tips and bits and bobs of advice / wisdom from the more experienced members etc... (and if anyone needs some planning / architectural advice in return, I am friendly, chatty and willing to help!) Just finished reading 'Rich Dad, Poor Dad" and the "The One Minute Manager" and "How to Win Friends and Influence People" and have been listening to the property podcast too (of course) - all fascinating and totally useful! Looking at a 5 bed house currently on the market at £350k - I have viewed the property and drafted-up some rough plans with costings to convert the place into a 4 bed main-house letting, with 2 Annexe accomodation units with dedicated living accomodation and off-street parking for all 6 tenants - the two annexe's would make great professional accomodation (or perhaps a place for my mum to live as a live-in landlord) - the rest of the main house is a 18th century villa that would act as a dedicated HMO, with very high quality accomodation for the tenants (each one would have an en-suite, and they would all share a generous ground floor kitchen, lounge and laundry room, all would have parking and a decent sized garden space with secure cellar storage). My question is: Does this sound like a sensible propositon at £350k, my instinct tells me to offer at below £300k (the place has been on the market for 18 months) and is perfectly situatued at the bottom of the college hill here in Hereford, 3 minutes walk from the bus & train station, supermarkets (morrisons) and sits opposite a light industrial trading estate and in an affluent, leafy area of town. Thoughts? Advice? I'd love to hear from some of you.... (I've attached my rough plans for some 'visual glue' for you all to pore over)