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Personal property to be managed by my LTD?


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Hi, 
I have a LTD company holding a couple of my properties, and also a property in my own name. 

My LTD is pretty quiet, with minimal revenue and minimal expenses at the moment. 

Is it feasible and wise to have my LTD to manage my personal property. I'm thinking of a rent to rent style agreement. Then any costs or even losses will be under the LTD? 

But I'm hearing that doing so might impact the LTD to get future financing as the LTD would not be an SPV anymore? 

What are your thoughts

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There’s no reason why you can’t do this and it shouldn’t affect future finance. I have clients who have both R2R and owned property in same company still making further purchases.

Jerome

Jerome@TaxAntics.co.uk

www.TaxAntics.co.uk
 

 

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  • 1 month later...

@kent614 do you mean you use you LTD company to manage the personal property that you own? Or do you mean your LTD company manages the properties that you own under the same LTD company? or you use LTD company to do R2R (adding new properties under it) ?

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  • 3 months later...
On 7/20/2020 at 2:58 PM, kent614 said:

Hi, 
I have a LTD company holding a couple of my properties, and also a property in my own name. 

My LTD is pretty quiet, with minimal revenue and minimal expenses at the moment. 

Is it feasible and wise to have my LTD to manage my personal property. I'm thinking of a rent to rent style agreement. Then any costs or even losses will be under the LTD? 

But I'm hearing that doing so might impact the LTD to get future financing as the LTD would not be an SPV anymore? 

What are your thoughts

You would need to see whether the mortgage provider of the property in your own name would allow this. If not on a lease agreement then you could look at a straight forward management agreement.

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk

 

 

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As a broker who specialises in limited company market finance having personal rental income in a limited company will reduce the number of mortgage lenders available to you. Most lenders will request your property portfolio where they will identify the personally owned properties. They have already seen them on the credit search but when it comes to looking at your bank statements the income won't be there. That will make them suspicious and you will either get questions or a decline.

Some lenders class this as tax evasion and it's not something you want to be accused of. If you are looking at changes to the structure of ownership or how income is received as well as tax advice speak to a broker who specialises in the market. 

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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On 7/20/2020 at 1:58 PM, kent614 said:

Hi, 
I have a LTD company holding a couple of my properties, and also a property in my own name. 

My LTD is pretty quiet, with minimal revenue and minimal expenses at the moment. 

Is it feasible and wise to have my LTD to manage my personal property. I'm thinking of a rent to rent style agreement. Then any costs or even losses will be under the LTD? 

But I'm hearing that doing so might impact the LTD to get future financing as the LTD would not be an SPV anymore? 

What are your thoughts

It is possible, but your charge need to be reasonable. Management expenses are normally up to 15%, so anything above that might raise suspicion

Also, you might need to justify what work is being done in return for those 15% expenses
 

_______________________________________________________________________________________________________________________________
Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
Travel Blog: https://soulfultravelguy.com/

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