Buying premises with living accommodation

[Drew_H]

I’m looking at a property that has larger living accommodation than my current house, lots of outside space, garden, car park, and additional rooms for my business, a Ltd company which I'm sole director of. The living accommodation can be separated from the office part, with each having two exits. What would be the best way to purchase and pay for the running of it with living and working from there?

Should the company buy it and than I pay what ever is due on the BIK, or should I personally buy it and lease the section to the company, with the company covering its share of the bills?

I’ve been saving money in the company accounts to buy a property, as I’m renting at the moment. So the company has enough to buy it. For me to buy it I’d need to sell my house and some land. I could take some money out of the company in dividends, but that would give me a huge tax bill.

The current owners were also living and running a business from there, so planning should be fine.

 

[WaveJumper]

Personally I would buy through the LTD if possible then rent the accommodation out. This is assuming of course if as you say it has planning for business use etc etc. Are you paying cash or are you going to need a commercial mortgage.

 

[Chris Ashdown]

What happens if the business fails thats your home gone as well, consider buying as one and selling the accomodation to you

 

[Drew_H]

Personally I would buy through the LTD if possible then rent the accommodation out. This is assuming of course if as you say it has planning for business use etc etc. Are you paying cash or are you going to need a commercial mortgage.

The company has almost enough to buy it, just a little short after paying the tax bill. I could loan the company the rest, but we also have a £44k order waiting on a prepayment guarantee form the bank. So by the time everything is in place, I shouldn’t need a mortgage.

 

[Drew_H]

What happens if the business fails thats your home gone as well, consider buying as one and selling the accomodation to you

This is sort of a course I was thinking about. The company buys it, then I buy it off the company once my house and land is sold, then rent the offices to the company. Not sure what rules cover me buying property off my own company though.