I'm guessing there are a few on here who have done it.
My grans house is up for sale and is in very bad condition, will be sold to a developer, as advised by the estate agent in control of it.
I own a limited company, a building company to be precise, so could easily take care of the renovation works.
I own my house, albeit with a mortgage still, this would obviously then be a 2nd home for me if I bought it.
What are the pros and cons of my limited company owning it?
Can the company get a mortgage for the house?
Are the rates better or worse than a personal buy to let mortgage?
If the company owns it, presumably any rental income goes to the company l, can I draw that out as a director?
Not sure on a few of your points but with regard to getting a mortgage through a limited company, the mortgage companies really tightened up on that about 10 years ago to the point of no one was offering them due to buy to let with zero responsibility. Not looked recently to see if things have changed though
Oh I see, Ive seen generic videos of people saying they've bought property via a limited company nowadays
Doesn't have to be a mortgage if the company can get a loan big enough, but that's probably more expensive than a secured mortgage.
Yes, rental income will go to the company. You can pay yourself a salary from this as director, or dividends as a shareholder.
Any profit made in selling it will be subject to Corporation tax, assuming the company has made a profit overall with its other activities, you won't get the principal private residence exemption from capital gain tax (but you won't anyway if you have another house which you live in)
We have done it and as you would expect there are pros and cons.
You can get a mortgage as a limited company but will probably have to sign up to some level of per liability for it as well if it’s a new company. The rates tend to be a bit higher v residential mortgages
If you buy through a ltd company then you have to pay and extra 3% stamp duty in addition to whatever the normal rate for the property is which stings a bit.
If you use a ltd company then you can offset the mortgage cost and all the works you do on the house against future years profits which you can’t do any more if you own it personally, this is especially true if you want want to keep it. If you just want to flip it, ie do it up and sell it then that’s less of a factor. But via Ltd as you say you can take profits out as a director. The only other thing to remember is the capital gains liability you create assuming it increases in value.
Lots of things to weigh up depending on what you want to do with it long term, the value now and after refurbishment and the likely cost of doing it