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Borrowing personally for Ltd Co


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I have a couple of mortgage-free properties in a ltd company and hoped to get more with some gearing. The investments I currently favour are houses rented to a women's charity, housing families leaving domestic abuse refuges. Because they are all housing benefit and won't be on Assured Shorthold Tenancies, I think I'll be struggling to get finance.

 

Personally, I can raise really cheap mortgage finance. Does anyone know of a way to 'dedicate' this to the company so the company can pay the capital and interest without creating a taxable interest income for me?

 

I have heard of schemes where people can 'transfer' properties and mortgages to a company without a sale transaction although I can't find anything out about this.

 

All help gratefully received!

 

Daryl

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Hi Daryl

 

If you have property in personal names, and can raise finance against this that should be fine, you would need to be careful as this would be classed as "business purposes" and that's often unacceptable to high street lenders.

 

As for putting that money into the limited company, or having the limited company pay the mortgage payments, that would need to be directed at your accountant, that's well outside my remit.

 

However in regards the finance, limited company lending has really changed significantly over the past 6 months, there are many more options on the market from new more innovative and flexible lenders. Rates start at about 3.5%, and i know a few are would consider DSS tenants. Also, wouldn't the tenants still have an AST, with housing benefit paid directly to tenants, or is the like a corporate let, where the local authority rents directly from you on say a 3 year agreement? Again though, i know a number of limited company lenders who would consider these arrangements.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Thanks for the reply Stuart. Yes, I'm looking for the answer concerning having the Ltd company pay the mortgage payments so if anyone knows I'd love to hear.

 

There would be no AST - my lease is with the charity at nil rate. They pass the benefits directly to me but the tenants only need to give a week's notice to leave. 

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