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chatham-chamber
chatham-chamber, Solicitor
Category: Property Law
Satisfied Customers: 11847
Experience:  LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
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I wish to buy a House of multiple occupation (licensed as

Customer Question

I wish to buy a House of multiple occupation (licensed as such) with my son who is a first time buyer. I own 10% of my resident house and my wife 90% The purchase price of the HMO is £362500. Is it better to form a Trust or a Company to buy the property as my son does not want to lose his first time buyer privileges (SDLT,MORTGAGE RATES ETC) ?
Thank you
C Chanter
Submitted: 1 year ago.
Category: Property Law
Expert:  chatham-chamber replied 1 year ago.
Hi,The new tax rules regarding buy to let properties only apply to private owners and cot companies.At this stage, the best thing you could do is take advice from a financial advisor. It would be more beneficial to purchase in a company name, if you are able to obtain funding.I hope this answers your question. If so, kindly rate the answer and provide feedback. If you wish to discuss, please feel free to ask further questions.Kind regards,
Customer: replied 1 year ago.
Not very comprehensive
Expert:  chatham-chamber replied 1 year ago.
What further information would you like?
Customer: replied 1 year ago.
What I now need to know is how much stamp duty will we pay if we buy as a LTD CO. Purchase price £362500?
Property is an HMO therefore fully let .
Expert:  chatham-chamber replied 1 year ago.
Hi,The stamp duty wpuld be the same as buying as an individual. This would be £8125.00The difference when buying as a company would be that if buying with a mortgage, you should still be able to write off the interest payments after 2017.I hope this answers your question. If so, kindly rate the answer and provide feedback.If you have any further questions, please do not hesitate to ask.kind regards