Buying a house through a Limited Company

littlebigjon

I'm thinking of buying a flat for my son to live in for a year until he finishes college and then to rent it beyond that. The cost will be about £125k.
I'm the sole director of a limited company and am thinking of putting the deposit down with money in the business account and mortgaging the rest on the company. I don't want to go down the route of trying to get a personal mortgage which i think i'd struggle to get anyway.
The company turns over just short of £100k and has about £20k expenses. Personally I still have 15 years of a £145k mortgage to go with about £150k of equity in my home.
The thought of the company paying for it and not me personally weighs better on my mind.
How feasible is my idea and how easy do you think it would be to organise it? I'm waiting to hear from my bank who i've had a personal mortgage with for ages.

eddddy

You also need to look at the tax implications - which can be quite complex.

In general (very simplistic) terms, a company owned property could be more tax efficient for rental income, but less tax efficient when you sell with a capital gain, and want to get the money out.

phill99

You need to remember that the house bought through a limited company remains the asset of that company. The rents are paid to the company which will have an impact on your corporation tax. Adduitionally, should the company be declared bankrupt, the flat will be sold as a company asset to oay any monies owed.