Is opening an LTD to buy a family members property to rent out a good idea?

[ninky]

Hello,

A family member of mine in interested in selling a property and me and my sister and so we would like to buy it, do it up and then rent it out.

I don't want to lose my first time buyers status and by opening a LTD and buying the property through there I can avoid that.

I've still got more to read up on and I'm not that well versed with things pertaining to buisness, I'm a lot more engineering minded.

Cheers for any insight.

 

[Mark T Jones]

You really need individual financial advice on this one - probably after the budget.

I'm told that it's only useful for 3 or more properties - but individual details matter

 

[Frank the Insurance guy]

Hi @ninky ,

The answer is "It Depends" - there are so many variables that you really need to have a conversation with an accountant to see what is best for you.

It may end up being more expensive than losing your first time buyers status!

There are costs and tax associated with doing this through a Ltd company that may be different to doing it personally.

 

[ninky]

You really need individual financial advice on this one - probably after the budget.

I'm told that it's only useful for 3 or more properties - but individual details matter

Ok yeah, I'm only really planning on having one so probably not worth it. I'll get some individual finance advice then. Cheers.

 

[ninky]

Hi @ninky ,

The answer is "It Depends" - there are so many variables that you really need to have a conversation with an accountant to see what is best for you.

It may end up being more expensive than losing your first time buyers status!

There are costs and tax associated with doing this through a Ltd company that may be different to doing it personally.

Thank you for your response, I'll talk with an accountant so I can get inidvidual advice, I think i've ended up being so conserned about losing my first time buyers status that I didn't consider that it actually may be worth losing in this case. Cheers!

 

[fisicx]

We planned on buying a flat via my limited company and everyone we spoke to advised against. For starters, the mortgage will be a lot more expensive and you will still end up paying a load of tax.

 

[DontAsk]

FTB status might be worth less after the budget in terms of stamp duty.

If it involves a LISA then there are other considerations.

 

[nelioneil]

I would check with a solicitor - I’m sure even buying through a company you would lose FTB status which also has an impact on stamp duty for future purchases.