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Buying a house from yourself
James_N
Posts: 1,090 Forumite
Not a trick question.
Is it possible to set up a business to buy a house from yourself: circumstances - needing to sell to raise money for a bigger family home, but realising the situation and type of place we are in now is IDEAL for a holiday rental business.
If this is possible - how to do it?
Is it possible to set up a business to buy a house from yourself: circumstances - needing to sell to raise money for a bigger family home, but realising the situation and type of place we are in now is IDEAL for a holiday rental business.
If this is possible - how to do it?
Under no circumstances may any part of my postings be used, quoted, repeated, transferred or published by any third party in ANY medium outside of this website without express written permission. Thank you.
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Comments
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What you describe is BTL.
A BTL mortgage on your current home and a residential mortgage on your new home.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Gorgeous_George wrote: »What you describe is BTL.
You could be right Gorgeous but some times we need to dig a little deeper, the OP could just as easily have a solicitor fetish that he needs to address. There aren't many cases in which therapy is cheaper than something else but in the current climate it might be more economical than a re-mortgage.
Tell us more about your plan, James, we're all here for you.0 -
I completely fail to understand this.Under no circumstances may any part of my postings be used, quoted, repeated, transferred or published by any third party in ANY medium outside of this website without express written permission. Thank you.0
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shes on drugs lolYou're not drunk if you can lie on the floor without holding on0
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I don't get quite what you mean.
If you mean you want to sell a house owned by Mr. Smith to the same Mr. Smith, no, there's absolutely no point at all.
If you want to sell the house owned by Mr. Smith to Mr. Smith limited, which you own, that's fine, as the company is a legal person.
If it's a non-residential property, Mr. Smith could sell the place to Mr. Smith's pension fund....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
neverdespairgirl wrote: »I don't get quite what you mean.
If you want to sell the house owned by Mr. Smith to Mr. Smith limited, which you own, that's fine, as the company is a legal person.
We own a residential property A with a (say) £50K mortgage. It's worth (say) £300K. We need that £300K to buy another property B to live in since we are so many! We have little ££ in the piggy bank but much ££ in equity. But we think property A is worth holding onto to let out because of where it is (students and holiday market).
Can we as a family sell A to ourselves as a ltd company, take the equity as a family and buy B, and retain A as a business venture?
If we can, who will lend?Under no circumstances may any part of my postings be used, quoted, repeated, transferred or published by any third party in ANY medium outside of this website without express written permission. Thank you.0 -
me too
Its like a prostitute giving herself a quick tickle and then charging herself a tenner!
Bizarre, but true.
Inless you own a considerable hotel, there's little point to becoming a limited company. It's let to buy rather than buy to let, is it not?
If you have a business, you have high associated costs and you won't be able to take as much equiy out as you might like. Bank will look at your track record (I'm presuming none) set you an interest rate accordingly (ridiculous); leaving you with nothing.
Fee freee whole of market broker is who you need to talk to; not forgetting that any equity left in your current property means extra interest payments on your new one. Do not assume that because the mortgage is covered on one, that it is "profitable" Debt costs money.Everything that is supposed to be in heaven is already here on earth.
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