Rolling property into BTL via company or not via company??

[RichStephens]

Happy new year, I hope you’re well. I have a hypothetical scenario based question and was wondering if you could help.

 

Scenario:

·         I own a flat (~£550K – £600K) and my girlfriend owns a flat (~£325K. Both are mortgaged. She has now moved in with me and currently renting her flat out.

·         We have seen a property we would like to purchase together. We envisage funding the prospective purchase through equity release from the flat I own, the sale of her flat, the rest being made up of a mortgage and cash.

·         The intention is to keep the flat I own and roll it into a buy to let mortgage.

 

Questions arising:

·         Does anyone have experience in holding a property via a company? Would it be more economical for us hold the flat we keep via a company in which we are both directors? Would this help avoid second home stamp?

·         Regarding the mortgage on my girlfriends flat which we intend to sell:  What options exist to getting out of the mortgage, aside from porting it?

 

Grateful if anyone on here can help here / point me in the direction of a resource which will help?

 

 

[Debbie Franklin]

It may well reduce the SDLT you pay on a new home but you will pay SDLT at extra 3% rate on market value to get your flat into a company. You have to calculate to see if worth it.