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Buying a new property through the business

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
8 replies 1.3K views
colinaireycolinairey Forumite
31 Posts
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
Am I able to buy a house in the name of a limited company ?

Replies

  • Anything is possible, may be not worth while unless your Ltd company's business is buying and letting houses.
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • ethankethank Forumite
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    Not if you want to obtain a residential mortgage for the property.
  • ThrugelmirThrugelmir Forumite
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    colinairey wrote: »
    Am I able to buy a house in the name of a limited company ?

    What do you hope to achieve by doing so?
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • AnniseleAnnisele Forumite
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    I suspect OP's question is related to his other thread (he's got a joint mortgage with his ex-wife, it's in negative equity, and he can't get his name removed).

    It's certainly possible for a limited company to buy a house. The problem will come if you want a bank to lend the company money - it'll likely want a personal guarantee, and then it'll look at your own finances, and consider whether you can afford the new mortgage plus the old one.
  • Thrugelmir wrote: »
    What do you hope to achieve by doing so?

    I already have a mortgage with my x wife and that is in negative equity with loans secured to it so I'm thinking I'm not going to be able to get another mortgage. However my business is doing well so i was hoping to get it in the businesses name instead of mine. ?
  • So you will need a commercial mortgage, with a good size deposit, not sure how you are going to convince the lender that buying a property for more than its worth. Maybe try a broker to see if this is actually possible first.
    Your company will need to pay stamp duty if its over £125,000.
    You'll need to rent it from your company or you will be taxed as a benefit in kind.
    Your company will need to pay tax on the rental income.
    Your company will become a landlord.
    Your company will need to pay capital gains tax when/if its sold in the future if it goes up in value, unless you buy it from your company at a later date for a reduced figure...not sure how legal giving away equity with a LTD company involved.
    The house will be an asset of the company, should the worse happen it will be at risk.

    If you run your company from home then you could wangle some sort plan, maybe you should speak to your accountant for the most upto date/legal advise.
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • ThrugelmirThrugelmir Forumite
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    colinairey wrote: »
    However my business is doing well so i was hoping to get it in the businesses name instead of mine. ?

    Even if you could, as it's highly unlikely, the lender would still link you to the mortgage in some way. As you could walk away and leave the Company with any debts owed in the event of default.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • mail2zmail2z Forumite
    139 Posts
    Mortgage lenders are little averse to lending to limited companies to buy residential properties as there is added risk in case of the borrowing companies declaring bankruptcy. You could get commercial mortgages if your company's financies are solid with a proven track record of several years of generating revenues and profits.
This discussion has been closed.
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