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Using Limited Company funds to assist in buying a residential property
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CakeBoss22
Posts: 2 Newbie
Hi All!
I was just wondering if someone had some advice or could suggest a method in which I could use my Limited company savings towards a down payment on a residential property.
To give you a bit of background on the company we are a bespoke cake maker who previously worked in a shop, but since 2020 have moved the business to a home based operation. We are quite busy (thankfully) given all the global events and desperately need a bigger space. Ideally somewhere with an out-building or a garage that can be converted to a dedicated work space.
So because we have been busy and also not paying the rent for the business premises for a couple years, we have accrued a tidy sum that we would like to tap into to help with the purchase of a house.
Without taking the money out as a dividend or as income as a director to access it, is there a way to claim any of the property costs as a business expense instead?
Thanks in advance.
I was just wondering if someone had some advice or could suggest a method in which I could use my Limited company savings towards a down payment on a residential property.
To give you a bit of background on the company we are a bespoke cake maker who previously worked in a shop, but since 2020 have moved the business to a home based operation. We are quite busy (thankfully) given all the global events and desperately need a bigger space. Ideally somewhere with an out-building or a garage that can be converted to a dedicated work space.
So because we have been busy and also not paying the rent for the business premises for a couple years, we have accrued a tidy sum that we would like to tap into to help with the purchase of a house.
Without taking the money out as a dividend or as income as a director to access it, is there a way to claim any of the property costs as a business expense instead?
Thanks in advance.
0
Comments
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No option but to take dividend and produce vouchers to evidence this to lender satisfaction.
No lender will take director loan etc for residential purchase deposit.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.1 -
Having established that, I'd suggest you speak to your accountant to find out the most tax efficient way of getting it out of the business.kingstreet said:No option but to take dividend and produce vouchers to evidence this to lender satisfaction.
No lender will take director loan etc for residential purchase deposit.Everything that is supposed to be in heaven is already here on earth.
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Agree - your solicitor who also acts on behalf of your lender will ask for your business company accounts, business company account statements and dividend certificates when providing proof of deposit. Depending on the lender or solicitor, they may want a statement from your accountant to say the dividends will not materially affect the business.0
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Not saying that any of the above isn't true nor how it should be done but have to say when did our property purchase we had to provide company account statements and the accountant completed a form confirming profits/dividends over the last 3 years but there was no request for dividends certificates, no opinions of the accountants asked for and no comment on a dividend done after the statement date.propertyhunter said:Agree - your solicitor who also acts on behalf of your lender will ask for your business company accounts, business company account statements and dividend certificates when providing proof of deposit. Depending on the lender or solicitor, they may want a statement from your accountant to say the dividends will not materially affect the business.
Don't know if the fact it was a "contractor" assessment by NatWest based on day rate and have over a decade of trading made any difference.0 -
Vouchers only because the dividend won't yet show in accounts.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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