New purchase

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AdrianF
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Hi. So I posted recently and have since now had an offer accepted on a house. I've spoken to my accountant but she doesn't really seem up with all the new changes so I thought I'd try here first before moving accountants which I really don't want to do as she's been with me a while.

I have two BTL properties. I have a 2 bed in my own personal name with a repayment mortgage on as it form part of my retirement planning and a small 1 bed house which I recently cleared the mortgage on. Currently I have been using the funds from the 1 bed to help over pay on the 2 bed to bring the term down. There is a significant portion of the rent which is payed at higher rate as I'm employed, but because all the funds go back to pay the mortgage, I have to find the money to pay the tax from elsewhere.

I have now agreed to buy another 1 bed house. I've spoken to 3m ho have suggested taking £90k from the paid off 1 bed and using it as a deposit for the other 1 bed and getting a mortgage for the rest. So far so good.

But what would people recommend for structuring the borrowing? Limited company on the new one and keep trying to find the higher rate tax on the other two, or also consider moving the other one bed house into a limited company (so both 1 beds in the limited company)? I know it's a tricky time with the elections next week but what are other landlords doing right now?

Any advice gratefully received.

02/06/2017 11:19

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