1st purchase, setting up Ltd company, getting mortgage - Struggling where to start?!

[Hayley C]

Hello All!

Over 2019, my partner and I have been educating ourselves about property and all the ins-and-outs of BTL. We have managed to save £30k, and now we need to take the leap of faith and actually start DOING some investment!! 

I'm the kind of person who has to have a clear plan of action, and I'm really struggling to nail down the process to purchasing our first BTL. After many discussions and considerations, we have decided that buying property as an SPV Ltd company will be the best option for us (both in terms of tax implications, and long-term goals).

We would be so grateful if anyone could offer any advice on what order to complete the following steps in:

- Set up a Ltd company (Side note - how have people found is the best way to do this?)

- Get a mortgage-in-principle (Is this possible for Ltd companies before finding a property?)

- Put an offer in on a suitable property 

- Set up a separate bank account for the Ltd company (Can this be a standard bank account?)

- Any other step in the process to purchasing your first BTL as a Ltd company that we have overlooked!

 

Any advice would be very much appreciated!  Thank you in anticipation,

 

Hayley and Steve

 

[J Lewis]

Hi Hayley and Steve

 

The best way to get answers to all your questions would be to book a consultation with our specialist property tax advisers  at Property Hub. You book a 45-minute consultation with the tax adviser. You'll have a chance to get all your questions answered and go feeling confident about the next steps you should be taking. 

Before the call, you’ll fill in a questionnaire to help us prepare – including telling us your goals, your personal circumstances, and about your current portfolio (if you have one).On the call, your adviser shares their screen while they walk you through your options – so you understand the exact pounds-and-pence impact different decisions will make to your tax bill or decision making with regards to Limited Company incorporation. 

You’ll receive a custom report summarising everything you talked about, backed up by detailed numbers for each different scenario.

You become a Property Hub Tax client, and we implement our recommendation. We also provide advice whenever you need it, and take care of the nuts-and-bolts of your tax filings. But there’s no commitment! Although most people choose to work with us, you can take your report and get it implemented by another accountant if you want to.

The consultation and report costs just £300 + VAT
Exceptional value for finally getting clarity on how you should structure your business - by someone who completely understands what property investors are all about. 

You can book the consultation by going to the link below:
https://thepropertyhubtax.as.me/schedule.php
 

[Conrad_Paton]

Hi Hayley and Steve,

Without trying to sell a service you need to:

Find a mortgage broker that can handle BTL SPV mortgages for you and ask them what they need. Get a list. Compare the difference between SPV mortgages and standard BTL's. Why do you think SPV's would be better? The rates are usually not as competitive as a normal BTL.

Anyway, if you decide to go ahead...

Set up Limited Company. (online company formation companies are ok for this)

Open Business Bank account in Company Name.(not as quick as you'd think)

Mortgage in principals may not apply to SPV's and I wont waste my time on them tbh as most BTL lenders do not issue arrangements in principles.

View and offer (on behalf of Ltd Company) and buy as usual. (some conveyancers may not handle SPV'S so do more research here also).

 

For 1 property and a £30k investment I don't think SPV's are the way you should go. But then I don't know your log term goals

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