Moving Rental Property to Ltd Company

I

ificandream

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Hi all,

I am interested to hear if anyone has experience moving a rental property from personal ownership to ownership under a limited company? i.e. Create a limited company, fund it as necessary and have the limited company buy the property at market value from me.

Some specific questions I have:
  • What banks would offer financing for this structure?
  • What type of LTV would be required to secure a loan on the property? Would funding the Limited company with 20% of the purchase price be sufficient?
  • I expect financing rates would be higher than a traditional mortgage, I am fine with this
  • Any other useful information for this type of setup?
Thanks in advance.
 
It is discussed at length here and elsewhere why it's a very bad idea to have a rental property in a company.

Do a search here or talk to your accountant and you will soon forget about it.

Brendan
 
Thanks for your reply. I would be interested in hearing if people have secured bank financing for a limited company to purchase a rental property? What LTV were the bank looking for? Any specific lenders more open to this type of financing?

Thanks.
 
Hi Leo, I have read 10 pages of other threads but I have not found any answers to LTV and financing options for Ltd Companies buying my rental property. Perhaps I am not using the search function as best as possible. If you have a link to a relevant thread that would be really helpful and appreciated.
Thanks.
 
ificandream said:
Hi Leo, I have read 10 pages of other threads but I have not found any answers to LTV and financing options for Ltd Companies buying my rental property. Perhaps I am not using the search function as best as possible. If you have a link to a relevant thread that would be really helpful and appreciated.
Thanks.
Click to expand...
What is your logic for being a landlord via a limited company?
 
Leo said:
@Bronte's is the key point, perhaps consider that there isn't detailed discussion on your specific question because that overall idea is not advisable.
Click to expand...
To be fair we did discuss it, BB was on those threads, can I find it, not a hope, but in my real life experience and on here I've never seen the logic of it. It it made sense I would have done it decades ago. Even the OP never outlined why they wanted to be a landlord via a limited company.

I think the main reason for not doing it was the taxes. That you'd end up doubly taxed.
 
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ificandream said:
Hi Leo, I have read 10 pages of other threads but I have not found any answers to LTV and financing options for Ltd Companies buying my rental property. Perhaps I am not using the search function as best as possible. If you have a link to a relevant thread that would be really helpful and appreciated.
Thanks.
Click to expand...

“My question is what type of bullets to use when shooting myself in the foot. Stop pointing me to guidance on the wisdom of shooting myself in the foot.”
 
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